August brought a lower number of new housing starts and also new apartment construction starts everywhere except in the Southern United States. Construction was down in the Northeast, the Midwest, and the West. In other words, new housing construction was down in August in all the rest of the United States outside of the South. "Fewer Starts in Housing, But Analysts Are Upbeat" p. B7, col. 6 (Associated Press copyrighted story published in New York Times Nat'l ed., "Business Day" Section, Friday, September 18, 2015).
A home lender's vice president is quoted in the linked report as saying that "[t]his is a mere blip on the radar." Let's hope so if we want homeowner's insurance policies. Fewer homes means fewer homeowner's policies in basic and simple terms. That may increase the cost and limit the availability of renter's insurance, too. Here's how.
Although even the fact that new construction of apartment buildings decreased, this event does not mean that there will not likely be some kind of insurance to be sold that would cover housing. Renter's insurance will not likely be totally eliminated simply because renters are going to be renting in existing buildings, rather than renting in new buildings.
The availability of renter's insurance for rented space in old buildings may be limited, however, by the age and condition of older buildings which may present greater risks than new construction. Or the premiums may be higher. Either way would present one more burden on people looking for a place to live that they can afford.
Please Read The Disclaimer. ©2015 by Dennis J. Wall, co-author of "Catastrophe Claims: Insurance Coverage for Natural and Man-Made Disasters" (Thomson Reuters West May 2015). All rights reserved.
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