A growing number of U.S. homeowners are adjusting their finances to keep up with rising homeowners insurance costs, according to new data from Insurify. The report, based on a survey of more than 1,000 homeowners, found that 57% have made financial sacrifices to afford their premiums.
Among those facing affordability challenges, 45% reported cutting back on nonessential spending, while 37% reduced home maintenance and repairs. Additionally, 20% borrowed money, 16% avoided medical care, and 10% skipped meals to cover insurance costs.
The findings come at a time when both homeownership and the ongoing cost of maintaining a home are becoming more difficult for many Americans.
Premium Growth Outpaces Inflation
Rising premiums are a key factor behind these financial adjustments. According to Matt Brannon, senior economic analyst at Insurify, the typical home insurance premium has increased nearly three times as fast as inflation over the past four years. Premiums rose 46% during that period, compared to a 16% increase in inflation.
Two primary drivers are contributing to higher costs: increased rebuilding expenses and growing exposure to extreme weather events.
Brannon noted that construction costs surged during the COVID-19 pandemic due to supply chain disruptions. As a result, replacement costs have increased significantly. A home that cost a certain amount to rebuild in 2019 may now require up to 40% more to insure at full replacement value.
At the same time, insurers are responding to heightened catastrophe risk. The U.S. experienced 23 billion-dollar weather disasters in 2025, the third-highest total on record, following 2023 and 2024. As risk increases, insurers often adjust pricing to account for higher potential losses.
Insurance Costs Often Overlooked in Homebuying
Despite rising premiums, many buyers are not factoring insurance into their home purchase decisions early enough. Insurify’s data found that nearly half of surveyed homeowners did not consider insurance costs when buying their home.
Brad Spurgeon, owner and CEO of Brad Spurgeon Insurance Agency in Texas City, Texas, said insurance is frequently overlooked during the buying process.
“Insurance often is the last thing on homebuyers’ minds and can catch them off guard at closing,” Spurgeon said. “Most of the focus is on the mortgage payment, taxes, and HOA fees, not insurance.”
Industry professionals note that evaluating insurance costs earlier in the process can help avoid unexpected increases in total housing expenses. In some regions, particularly those exposed to natural disasters, insurance pricing can significantly affect monthly payments.
Brannon pointed to Florida as an example, where insurance and flood coverage can materially impact affordability. Buyers considering properties in higher-risk areas, such as those prone to hurricanes, may face elevated premiums.
Understanding these costs before submitting an offer can help reduce the likelihood of last-minute adjustments, such as increasing deductibles or reducing coverage levels.
Strategies to Manage Rising Costs
While premiums continue to rise, several approaches may help homeowners manage costs.
One recommendation is to regularly compare insurance quotes. Brannon advised homeowners to review rates from at least three insurers every six months. However, he emphasized the importance of comparing equivalent coverage limits and deductibles to ensure accurate evaluations.
Discounts also remain a potential avenue for savings. Insurers may offer reductions for policyholders who bundle coverage, install security systems, pay premiums in full, or meet certain eligibility criteria such as military service or age. Some discounts may not be widely advertised, making it important to inquire directly with insurers or agents.
Property-level risk mitigation can also influence premiums. Upgrades such as fortified roofs or hurricane shutters may reduce the likelihood of damage, thereby lowering insurers’ perceived risk. Some states offer financial assistance programs for these improvements, and in certain cases, insurers are required to provide discounts for qualifying upgrades.
As premiums continue to increase, these strategies may play a larger role in helping homeowners maintain coverage without making significant financial trade-offs.
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