A Survey — Rising Homeowners Insurance

Realtor.com did a survey on homeowners insurance and found close to 75% of the 1,000 people it talked to think homeowners insurance could become unaffordable. Of those surveyed, 88% think they’re going to pay more for homeowners insurance in the future with 42% indicating they’ve already experienced an increase.

Company Chief Economist Danielle Hale said over half — 58% — expect to have trouble getting or renewing homeowners insurance in the future.

“But these benefits come with an upfront cost that has risen as weather events have become more frequent and impactful, and rebuilding costs climb,” she said. “Homeowners are looking for strategies to lower costs, including adjusting their home searches and potentially short-charging or forgoing coverage altogether.”

Sadly, Realty.com said challenges to obtain insurance have forced 33.7% of those looking to buy a home to change where they want to live.  

Here’s the breakdown:

Your homeowners insurance has risen in cost in the last two years:

Definitely applies: 42.1%

Probably applies: 31.3%

Does not apply: 26.6%

You expect to pay more for homeowners insurance in the future:

Definitely applies: 45.2%

Probably applies: 43.3%

Does not apply: 11.5%

You recently faced challenges PURCHASING homeowners insurance:

Definitely applies: 20.7%

Probably applies: 27.9%

Does not apply: 51.4%

You recently faced challenges RENEWING homeowners insurance:

Definitely applies: 20.1%

Probably applies: 27.5%

Does not apply: 52.4%

If homeowners premiums continue to rise will it become unaffordable:

Definitely applies: 31.2%

Probably applies: 44.1%

Does not apply: 24.7%

If costs get too high, will you not purchase, or let your homeowners insurance lapse:

Definitely applies: 23.6%

Probably applies: 35.1%

Does not apply: 41.3%

Are you worried about obtaining or keeping homeowners insurance:

Definitely applies: 27.2%

Probably applies: 38%

Does not apply: 34.8%

You completely changed a strategy of homeowners insurance purchase based on pricing challenges:

Generation Z: 30.5%

Generation Y: 25.9%

Generation X: 19.9%

Baby boomers: 5.9%

You expanded the initial target geography of where you want to live because of insurance rates, or being unable to purchase insurance:

Generation Z: 32.5%

Generation Y: 32.2%

Generation X: 32.8%

Baby boomers: 15.8%

You eliminated some desired locations to live because of homeowners insurance issues:

Generation Z: 35.8%

Generation Y: 36%

Generation X: 33.2%

Baby boomers: 25.7%

There is no homeowners insurance impact yet, but you expect it will in the future:

Generation Z: 18.5%

Generation Y: 19.3%

Generation X: 23.7%

Baby boomers: 32.2%

No change:

Generation Z: 15.9%

Generation Y: 16%

Generation X: 14.9%

Baby boomers: 32.9% Source link: Insurance Journal — https://bit.ly/4gCWhUX