---
title: "Op/ed: A Blueprint for Solving the Homeowners Insurance Crisis"
date: 2024-07-17T16:19:00-04:00
author: University of Maryland
canonical_url: "https://today.umd.edu/op-ed-a-blueprint-for-solving-the-homeowners-insurance-crisis"
section: Articles
---
# Op/ed: A Blueprint for Solving the Homeowners Insurance Crisis

*July 17, 2024* — by [Clifford Rossi](/author/clifford-rossi)


> Rise of Extreme Weather Events—and Claims—Demands Private-Public Solution, Risk Expert Says

*Getty Images 2161268089 1920x1080 — A UMD expert in risk management calls for a national solution to a national crisis: failures in the homeowners insurance market amid a rise in natural disasters, such as that wrought by Hurricane Beryl in Texas last week.*

*Hurricanes, wildfires and other extreme weather threats are damaging homes and other property at an accelerating pace, pushing the United States toward an insurance crisis, writes Clifford Rossi, a University of Maryland finance professor of the practice and executive-in-residence at the Robert H. Smith School of Business.*

 *Writing in* National Mortgage Professional*, the risk management expert says the rising frequency and severity of natural disasters has rendered private insurers unable to provide long-term premium stability and ultimately threatens their ability to offer coverage to homeowners.*

That solution is the Federal Natural Hazard Insurance Corporation—a private-public approach to providing homeowners insurance across all natural hazards and states that would address myriad failures in today’s insurance market.

As a new, federally chartered government-sponsored enterprise (GSE), the Federal Natural Hazard Insurance Corporation would carve out natural hazards from existing homeowners’ policies, offering a separate policy based on a property’s exposure to the specific natural hazards in that location. The Federal Emergency Management Agency’s National Flood Insurance Program would be absorbed into this new GSE and form the basis for a broader set of insurable hazards to be incorporated into these policies.

*Read* [*the rest*](https://nationalmortgageprofessional.com/news/blueprint-solving-homeowners-insurance-crisis) *in* National Mortgage Professional *magazine.*




**Topics:** [Research](https://today.umd.edu/tags/research)


**Tags:** [Finance](https://today.umd.edu/topic/finance), [Research](https://today.umd.edu/topic/research)


**Units:** [Robert H. Smith School of Business](https://today.umd.edu/topic/robert-h-smith-school-business)