What happened in this Energy story?

A July 2025 Consumer Federation of America report finds homeowners in predominantly Hispanic and Black ZIP codes pay substantially higher insurance premiums than those in white communities, even for identical policies, adding tens of thousands of dollars over a 30-year mortgage.

What is a key fact in this story? (1)

**Consumer Federation of America** report found homeowners in predominantly Hispanic ZIP codes pay 30% more ($950 annually) and those in predominantly Black ZIP codes pay 16% more ($500 annually) for the same home insurance coverage as homeowners in white communities.

What is a key fact in this story? (2)

**Florida** shows the most acute Hispanic disparity at 58% more ($5,014 annually) per year, while **Michigan** has the largest Black gap at 74% ($1,768 annually), followed by **Pennsylvania** at 57% ($1,048), according to the report's state-by-state breakdowns.

As extreme weather worsens, Black and Hispanic homeowners are paying more for insurance — SkimNews

By Grist · Summarized & edited by Kapil Samant · 2026-09-12

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Consumer Federation of America report found homeowners in predominantly Hispanic ZIP codes pay 30% more ($950 annually) and those in predominantly Black ZIP codes pay 16% more ($500 annually) for the same home insurance coverage as homeowners in white communities.
Florida shows the most acute Hispanic disparity at 58% more ($5,014 annually) per year, while Michigan has the largest Black gap at 74% ($1,768 annually), followed by Pennsylvania at 57% ($1,048), according to the report's state-by-state breakdowns.
Over a 30-year mortgage, the cumulative extra cost reaches $28,500 for Hispanic homeowners and $15,000 for Black homeowners, compounding the financial burden in communities already vulnerable to climate-driven disasters.
Typical homeowner insurance costs jumped 24% between 2021 and 2024, driven by climate change intensifying hurricanes, wildfires and other billion-dollar disasters, per earlier Consumer Federation research cited in the report.
Insurance Information Institute spokesman Mark Friedlander countered that premiums are actuarially grounded and risk-based, and that using race or proxies for race to set rates is illegal in every U.S. jurisdiction.
The report flagged AI and proprietary pricing models as emerging discrimination risks, with co-author Sharon Cornelissen noting bias 'can kind of creep in if they're not paying attention to potential unequal impacts,' even without explicit racial factors.
The findings echo past enforcement actions, including a $17.5 million 1990s settlement with Nationwide over racial profiling in Black neighborhoods and a $16 million-plus settlement with American Family Mutual over inferior policies sold to Black homeowners.

Why it matters: The report's comparison of identical policies isolates a racial premium that cannot be explained by differences in homes or coverage, documenting $28,500 in extra costs over a 30-year mortgage for Hispanic homeowners. With typical premiums already up 24% since 2021 and climate risk escalating, the gap directly undermines homeownership affordability for communities of color — the very populations historically redlined and now disproportionately exposed to extreme weather.