Insurers Blocking Homeownership?

The president of the National Association of Realtors blamed homeowner insurance underwriters for creating new barriers to homeownership.Speaking at the National Press Club in Washington, NAR president Cathy Whatley questioned the use by insurers of credit scores and the Comprehensive Loss Underwriting Exchange database. There are consumers who would otherwise qualify for a mortgage are being turned down for homeowners insurance and others are finding that phone calls to their insurance agent recorded on their CLUE file which could possibly jeopardize their coverage, she said. Another problem is increases in premiums. Ms. Whatley cited the Insurance Information Institute statement that the cost of homeowners insurance went up 8% last year and is expected to increase an additional 9% this year. Insurance affordability and availability have also had an effect on the commercial and multifamily sectors, she said.