Insurance has grabbed headlines lately for good reason. As home prices remain elevated at historically high levels, rising insurance premiums are also contributing to the growing costs of homeownership and property management. From the Great Recession to the present, homeowners insurance prices have increased 74 percent while home prices have increased more than 40 percent, even after adjusting for inflation. Real premiums have risen approximately 20 percent between 2020–2023 alone (Figure 1). Premiums are increasing for both homeowners insurance (which typically covers common risks including fire) and for hazard-specific insurance (separate policies for more localized risks like earthquakes, floods, and other climate-related exposures).
Source: The Insurance Crisis Continues to Weigh on Homeowners | Joint Center for Housing Studies