Across the U.S., soaring insurance premiums are putting pressure on homeowners, and for some, making it impossible to keep their homes.
As extreme weather becomes more severe, these costs are expected to rise even further.
What’s happening?
According to MarketWatch, home insurance premiums jumped 20% between 2022 and 2024, with another 8% increase expected in 2025.
Natural disasters like wildfires and floods are driving the surge, prompting insurers to pull out of high-risk states such as California and Florida.
One California homeowner on the state’s FAIR Plan saw his annual premium jump from $7,000 to $12,000 in a year, without ever filing a claim.
“I mean, it’s just crazy,” the homeowner said about the sudden price increase, per MarketWatch.
Housing counselors in Florida say more first-time buyers are falling behind on mortgage payments as insurance becomes unaffordable.
This issue is especially tough on FHA borrowers, who tend to have lower incomes and minimal savings. With insurance required by lenders, many are forced to choose between paying premiums and buying groceries.
Similar trends are unfolding nationwide. In places like Colorado, homeowners are scrambling as insurers drop coverage, while working-class families are being left unprotected by shrinking access to affordable plans.
Why is this concerning?
These rising costs reflect a broader pattern: human-caused pollution is overheating the planet, leading to stronger storms and longer wildfire seasons. That drives insurers away from high-risk areas, leaving families without coverage or paying drastically higher rates.
|
How concerned are you about your energy bills increasing this summer? Very Somewhat Not much Not at all Click your choice to see results and speak your mind. |
Officials warn this could lead to an “uninsurable future,” and the burden falls heaviest on working-class communities and people of color, especially in states with the steepest premium hikes.
What’s being done about it?
States like California and Florida have expanded public insurance options. Some cities are investing in wildfire buffers and flood defenses.
But the root solution is reducing pollution that is heating the planet. You can help by electrifying your home, driving less, and supporting climate-friendly policies.
Join our free newsletter for good news and useful tips, and don’t miss this cool list of easy ways to help yourself while helping the planet.
Alice J. Roden started working for Trending Insurance News at the end of 2021. Alice grew up in Salt Lake City, UT. A writer with a vast insurance industry background Alice has help with several of the biggest insurance companies. Before joining Trending Insurance News, Alice briefly worked as a freelance journalist for several radio stations. She covers home, renters and other property insurance stories.