A “racial premium gap” costs Black and Hispanic homeowners substantially more than white households for homeowners insurance premiums, according to a new report published July 14 by the Consumer Federation of America (CFA).
The report estimates Black households pay $15,000 more over the life of a 30-year mortgage — 16% higher than white households — while Hispanic households average $28,500 more, or premiums that are 30% higher.
“The existence of the racial premium gap raises serious concerns about modern-day redlining and whether homeowners in neighborhoods of color are unfairly charged more,” the report states, adding that its analysis shows that a substantial racial premium gap remains even after accounting for risk-based underwriting fa...