The Rising Cost of Homeowners Insurance: An Uphill Battle for the American Dream

The dream of homeownership is becoming increasingly challenging, and a major culprit is the rising cost of homeowners insurance. A recent survey by Maxwell of 1,200 American homeowners revealed that a staggering 90% have experienced increased premiums in the past two years. 

This financial strain is not only impacting homeowners' monthly budgets but also forcing many to reconsider the feasibility of homeownership altogether.   

Key Findings from the Maxwell Report

The Impact of Rising Premiums

The Maxwell report highlights the significant financial burden homeowners are facing due to rising insurance premiums. The data shows that:   

• 44% of homeowners have seen their monthly housing costs increase by 10-20% due to rising insurance premiums.   
• 13% have experienced a 20-30% hike.   
• 6% have seen increases of more than 30%.   

These rising costs are particularly acute in disaster-prone areas, where homeowners face higher premiums and an increased risk of coverage denial.   

The Threat of Dropped Coverage

Adding to the financial strain, many homeowners are also facing the possibility of having their coverage dropped altogether. Insurance companies are increasingly reluctant to insure properties in high-risk areas, leaving homeowners with limited and costly options. The Maxwell report found that:   

• 5% of homeowners do not have a homeowners insurance policy.   
• 44% of those without coverage dropped it because it became too expensive.   
• 8% had their policies canceled by their insurance provider.   

The Uncertain Future of Homeownership

The combined impact of rising premiums and the threat of dropped coverage is painting a bleak picture for many homeowners. The Maxwell report indicates that:   

• 46% of homeowners are questioning their ability to afford their homes due to rising insurance and property taxes.   
• 57% are considering selling their homes or moving within the next five years if insurance rates continue to rise.   

What Can Homeowners Do?

The findings of the Maxwell report underscore the urgent need for homeowners to be proactive in managing their insurance costs. Here are some steps homeowners can take:

• Shop around and compare quotes from different insurers.
• Review your coverage and make sure you have the right level of protection.
• Consider increasing your deductible to lower your premium.
• Make your home more disaster-resistant to qualify for discounts.
• Talk to your insurance agent about ways to save money.

The rising cost of homeowners insurance is a complex issue with no easy solutions. However, by being informed and proactive, homeowners can take steps to mitigate the impact on their finances and protect their dream of homeownership.

Need help choosing the right insurance provider? Get in touch with us today to take the first step in securing your future.

Reference

Maxwell. (2025). Maxwell Data Report: How the Rising Cost of Homeowners Insurance Threatens the American Dream.