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

Key findings indicate that 44% of homeowners have experienced increased monthly housing costs due to rising premiums, 23% are concerned about their coverage being dropped, and 57% are considering selling or moving within the next five years. 

These alarming trends highlight the urgent need for homeowners to be proactive in managing their insurance costs and for the industry to find solutions to address this growing challenge.   

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.

How to Protect Your Budget in an Era of Rising Premiums

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:

• Compare free insurance 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.

Worried about rising insurance costs? Speak with a licensed advisor today and find the most affordable coverage options for your home—before your rates go up again.

Reference

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

FINDING | PERCENTAGE OF HOMEOWNERS

• Monthly housing costs increased due to rising insurance premiums | 44%
• Concerned about insurance carriers dropping their coverage | 23%
• Considering selling or moving due to rising costs | 57%
• Questioning ability to afford homes due to insurance and property taxes | 46%