A new report from the Consumer Federation of America has found over six million Americans own uninsured homes, approximately 7.4 percent of all United States homeowners. Black homeowners are disproportionately impacted by the lack of housing insurance. Some 11 percent of African American homeowners do not have insurance for their properties compared to 6 percent of White American homeowners.
Using data from the 2021 American Housing Survey and American Community Survey, the report estimates $1.6 trillion in property value is uninsured, $206 billion of which is owned by Black Americans. Older Black homeowners over the age of 65 are even more likely to own an uninsured home. More than 12 percent of all Black homeowners over the age of 65 are uninsured.
In their report, the authors offer recommendations for how state and federal governments can reduce the number of uninsured homes, as well as the racial and economic disparities of the Americans who own them. Their suggestions include collecting more data on homeowners insurance gaps, increasing investments into community risk reduction, and researching the historical racial discrimination of the American real estate and insurance markets.
“Inequalities in who has homeowners insurance will likely widen the long-standing racial wealth gap, as uninsurance disproportionately impacts Hispanic, Black, and Native American homeowners,” the authors write. “Over time, insurance access is likely to become a key decider of who can fully reap the benefits of homeownership, including maintaining their home and building wealth.”
