ValuePenguin — 25% of Homeowners in 2025 Dropped by their Insurer

ValuePenguin did a survey and concludes it’s growing ever-harder for homeowners to find affordable insurance for their homes and property. Premium increases hit 66% of homeowners in 2024 and 25% of homeowners have seen their insurance dropped by their insurer in 2025.

ValuePenguin insurance expert Rob Bhatt said that’s up from 19% in 2024.

"The homeowners insurance market is under duress, and it’s creating real challenges for many homeowners. Home insurance is becoming harder to find in many parts of the country, including California, Texas and Florida,” Bhatt said. “Many companies have had to raise their rates to stay solvent. In some cases, they’ve stopped accepting new customers or pulled out of certain areas because they've been spending more to settle claims than they’ve been earning in premiums."

Here’s more from the survey:

• The number of people worried they’ll be dropped by their insurer is 50% — double the 26% in 2024
• 67% say their homeowners insurance rate rose in 2024
• 38% of those with rate hikes in 2024 said theirs was 10% or higher
• 75% expect their homeowners insurance rate to rise in 2025
• 44% say it’s more difficult to afford their insurance this year
• 34% said they reduced coverage this year to afford their premiums
• 58% say they have shopped their insurance this year
• Those switching saved an average of $1,034
• 56% asked their insurer for discounts and those getting one saved an average of $781 a year
• 24% don’t think homeowners insurance is worth the expense
• 31% are thinking about self-insuring

Bhatt doesn’t look for things to get better anytime soon.

“Insurance companies have responded to large-scale natural disasters and inflation by raising rates in many parts of the country,” he said. “Some have stopped accepting new customers in risky areas and are even dropping existing customers.This is making home insurance harder to get and more expensive.”

Source link: PropertyCasualty360.com —  https://bit.ly/4cFrXHk