Stagflation Is Reshaping the Home Insurance Market

In episode 45 of Stagflation Conversations with Fexingo, Lucas and Luna examine how persistent high inflation and slow growth are upending the home insurance industry. With consumer prices rising 4.2% annually in May 2026 and core inflation sticky, insurers are jacking up premiums, pulling out of high-risk states, and tightening underwriting. Lucas breaks down the data: replacement costs for building materials have surged over 30% since 2020, and reinsurance rates have nearly doubled, forcing carriers to recalculate risk models. Luna notes that in states like California and Florida, homeowners are seeing average premium hikes of 25% to 40%, and some can't find coverage at any price. The hosts discuss how this feeds back into the stagflation cycle, draining household budgets and dampening housing market activity. They also cover the rise of state-backed 'insurers of last resort' and the quiet shift toward parametric insurance products. A concrete look at an often-overlooked cost of stagflation. #HomeInsurance #Stagflation #Economics #Inflation #ClimateRisk #Reinsurance #HousingMarket #California #Florida #InsuranceCrisis #ParametricInsurance #FAIRPlan #BuildingCosts #CoreInflation #CPI #HouseholdBudget #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo