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Another pressing issue in the real estate sector is the rising costs associated with home insurance. Many prospective buyers are including stipulations in their contracts that allow them to withdraw if they cannot attain insurance at acceptable rates. This has turned into a prevalent theme in real estate negotiations, which only adds to the number of canceled contracts.
Moreover, homeowners' associations (HOAs) are seeing astronomical increases in insurance premiums. In Lake View, Minnesota, for example, an HOA's insurance costs soared to $236,000 per year. With typical assessments climbing by $700 a month in some places, many renters and homeowners find themselves struggling to meet these financial obligations.