Weather & Science
If US Inflation Reflected Rising Home Insurance Costs, It’d Be Even Higher
Soaring home insurance premiums could have added about 0.8% to last year’s consumer price index increase of 3.4%, according to Bloomberg Intelligence.
A house damaged following Hurricane Ian in Fort Myers Beach, Florida, on Aug. 29, 2023. Climate-driven weather events are driving up home insurance premiums across the US.
Photographer: Eva Marie Uzcategui/BloombergIf the rising price of homeowners insurance were factored into the US Consumer Price Index — a key metric of inflation — it could have added 80 basis points, or about 0.8%, to last year’s CPI increase of 3.4%, according to an analysis from Bloomberg Intelligence.
By not including home insurance, the CPI “ignores climate costs,” writes BI senior analyst Andrew Stevenson in his April 9 note.