Most U.S. Homeowners Worry About Increasingly Expensive Insurance Costs, Survey Finds

U.S. homeowners are increasingly worried about the affordability of home insurance, according to a recent survey by Realtor.com.

Nearly 47% of homeowners surveyed have already experienced or expect to face difficulties buying or renewing home insurance policies. And 75% believe home insurance could become unaffordable for them if costs continue to increase.

Home insurance costs have been increasing in recent years due to the higher cost of building materials and repairs, insurance fraud in some areas, and growing climate-related risks. A higher frequency of flooding, wildfires, and other severe weather events continues to pose greater risks for homeowners and home insurers alike.

In 2024 alone, the U.S. experienced 27 billion-dollar weather events, causing $182.7 billion in total damages. From 2020 to 2024, the U.S. had 115 billion-dollar weather events, resulting in $746.7 billion in damages — about $149.3 billion per year.

From 2010 to 2019, the average annual cost of billion-dollar weather events amounted to $99.5 billion. In the previous decade, from 2000 to 2009, the average annual cost of damage was $62.2 billion.

These high-cost weather event years have put additional strain on insurance premiums. Realtor.com’s survey found that 42% of homeowners have already faced increased insurance premiums during the last two years. In addition, 88% anticipate having to pay more for home coverage in the future.

In 2024, the average annual cost of home insurance increased by 8% from $3,017 to $3,259, according to an Insurify home insurance report.

What’s next: How will homeowners respond?

Survey respondents stated there could be a breaking point regarding home insurance affordability, as 58% of surveyed homeowners reported they would consider going without home insurance if rates got too high. This is especially true for Gen Z homebuyers — 76% of whom would consider skipping home insurance.

In addition, more than 65% report being worried about buying or maintaining a home insurance policy.

The survey also suggests rising insurance costs are affecting how people buy homes.

Of current homebuyers surveyed, 30% have completely changed where they’re looking for a home due to insurance challenges. An additional 30% have broadened the initial search to include more geographic areas.

Younger generations of homebuyers report being more likely to change their home-buying strategies than older homebuyers. Only 6% of Baby Boomers have reported completely switching their home-buying method, compared to 30% of Gen Z homebuyers.

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