In a new video by real estate expert Michael Bordenaro, the shocking truth about the insurance industry’s unprecedented spiral out of control is exposed. 

From jaw-dropping increases in homeowners, car, health, and even pet insurance, the inflationary nightmare is leaving Americans reeling. Bordenaro shares the stories of his audience, revealing the real impact of these insurance hikes on everyday lives.

Insurance Industry In Turmoil

Bordenaro begins by expressing his inspiration for the video, fueled by the harrowing stories shared by viewers. Insurance agents themselves confess to never witnessing such chaos in the industry, with claim severity soaring by 34% in 2022. The culprits? Inflation, disrupted supply chains, and the aftermath of the pandemic.

The video delves into firsthand accounts from insurance professionals, bringing to light the turmoil within the sector. A 17-year insurance veteran provides insights into the devastating impact, disclosing an alarming 85% plummet in new business. 

Big insurance companies are abandoning states, leaving homeowners in limbo, and underwriting guidelines are suffocating any hope of obtaining reasonable quotes.

Commercial Fallout

Commercial spaces are not immune to the insurance upheaval, with underwriters detailing skyrocketing premiums affecting nursing homes, grocery stores, and various commercial buildings. The repercussions extend beyond homeowners, impacting the broader economy as businesses face the brunt of insurance-induced financial strain.

The spotlight turns to condo associations, with a condo president from Colorado Springs sharing a chilling account. A 96k increase in insurance costs prompts drastic measures, including raising deductibles and grappling with limited options. The struggle is real, painting a vivid picture of associations’ challenges in maintaining financial stability.

Renters, often considered insulated from homeownership woes, are not spared. Landlords, grappling with escalating insurance costs, pass the burden onto tenants through hefty rent hikes. The vicious cycle of insurance-induced financial strain extends its reach to those who least expect it.

Pet Insurance Dilemmas

Even the world of pet insurance isn’t exempt from the turmoil. Pet owners seeking to safeguard their furry companions have faced a daunting 108% increase over six years. The emotional and financial toll of skyrocketing premiums raises questions about the sustainability of insuring beloved pets.

Electric vehicle owners find themselves in the insurance crosshairs, with Bordenaro highlighting the startling case of a Tesla Model 3 owner. 

A 35% increase, despite a pristine driving record, underscores the far-reaching consequences of insurance chaos, hinting at potential industry-wide ramifications.

In the comments, people are sharing their own experiences with insurance: “I am a retired insurance adjuster. 40 years ago Fire was the most common cause of loss for property insurance, now it’s water. Back then if you had a flooded basement you rented a pump and threw out those old boxes, now if you’re basement floods you have $50,000 in damage and another $20,000 in damaged contents. Insurance used to be reserved for major losses, now they even market it as being for broken windows.  That’s one of the many problems with the insurance industry.”

Another one added: “After a ridiculous insurance increase on my house, I was told the insurance companies  Got Congress to pass a law making insurance a nationwide “shared risk pool”.  So, if you live in Colorado and your rates are going up at some crazy rate because houses are burning in California then welcome aboard, you’re just as responsible for those houses as Californians and because of the “law”, you can’t sue.  You’re stuck! And insurance on electric cars needs a major reform.”

There are also comments from people that work for insurance companies: “I work for an insurance company and we’ve had to pull out of Florida due to claims severity. Property insurance down there is obviously a challenge given the weather and contractors having to jack up pricing due to the cost of materials right now. I don’t know what the solution for anyone living there would be. The government should stop sending cash to other countries for wars and instead pile that money into a fund to provide affordable insurance for homeowners in Flordia. Its impossible for companies to do it profitably without pushing huge increases that most will struggle with”

Economic Fallout and Future Projections

The video delves into the economic fallout triggered by the insurance crisis. Homeowners, faced with exorbitant deductibles, contemplate the viability of insurance, raising concerns about a potential wave of non-compliance. 

The potential shift towards forgoing insurance and braving potential fines looms large, threatening the very foundation of the insurance sector.

Ultimately, Bordenaro warns us about the insurance sector becoming a catalyst for broader economic issues, underscoring the urgency of addressing the crisis. What are your thoughts and experiences? 

Are insurance companies pushing the boundaries of affordability, leaving everyday Americans to face financial ruin? How has the insurance crisis affected your life? We want to hear your personal stories and how you’ve navigated the tumultuous landscape of escalating costs.”

Do you believe there’s a breaking point for consumers where insurance becomes a luxury rather than a necessity? Share your insights on the future of insurance in America. Is the insurance sector becoming a catalyst for economic instability? Explore the potential ripple effects on businesses, homes, and daily life.

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