{"id":3298,"date":"2025-09-11T16:35:30","date_gmt":"2025-09-11T16:35:30","guid":{"rendered":"https:\/\/www.gethomeinsurancequotes.com\/blog\/?p=3298"},"modified":"2025-09-11T16:35:34","modified_gmt":"2025-09-11T16:35:34","slug":"homeowners-insurance-premiums-skyrocket-forcing-homeowners-to-consider-moving","status":"publish","type":"post","link":"https:\/\/www.gethomeinsurancequotes.com\/blog\/homeowners-insurance-premiums-skyrocket-forcing-homeowners-to-consider-moving\/","title":{"rendered":"Homeowner\u2019s Insurance Premiums Skyrocket: Forcing Homeowners to Consider Moving"},"content":{"rendered":"\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1000\" height=\"667\" src=\"https:\/\/www.gethomeinsurancequotes.com\/blog\/wp-content\/uploads\/2025\/09\/homeowners-premiums-skyrocket.jpg\" alt=\"\" class=\"wp-image-3299\" srcset=\"https:\/\/www.gethomeinsurancequotes.com\/blog\/wp-content\/uploads\/2025\/09\/homeowners-premiums-skyrocket.jpg 1000w, https:\/\/www.gethomeinsurancequotes.com\/blog\/wp-content\/uploads\/2025\/09\/homeowners-premiums-skyrocket-600x400.jpg 600w, https:\/\/www.gethomeinsurancequotes.com\/blog\/wp-content\/uploads\/2025\/09\/homeowners-premiums-skyrocket-768x512.jpg 768w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><\/figure>\n\n\n\n<p>While states like <a href=\"https:\/\/www.gethomeinsurancequotes.com\/florida\/homeowners-insurance-quotes.php\">Florida<\/a>, <a href=\"https:\/\/www.gethomeinsurancequotes.com\/california\/homeowners-insurance-quotes.php\">California<\/a> and <a href=\"https:\/\/www.gethomeinsurancequotes.com\/louisiana\/homeowners-insurance-quotes.php\">Louisiana<\/a> have seen climbing insurance costs for years due to severe weather, flooding and hurricanes, other states, <a href=\"https:\/\/www.gethomeinsurancequotes.com\/colorado\/homeowners-insurance-quotes.php\">Colorado<\/a> and <a href=\"https:\/\/www.gethomeinsurancequotes.com\/illinois\/homeowners-insurance-quotes.php\">Illinois<\/a> are good examples, are seeing climbing rates as well due to hailstorms and wildfires.\u00a0<\/p>\n\n\n\n<p><strong>As homeowner\u2019s insurance premiums skyrocket, for some policyholders, the math no longer makes sense forcing them to consider selling their home and moving.<\/strong><\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cIn coastal and wildfire-prone states, I\u2019ve worked with customers who adored their homes but couldn\u2019t come to grips with annual premiums that were growing by thousands of dollars,\u201d said&nbsp;<strong>Evan Harlow<\/strong>, a Maui-based&nbsp;real estate agent&nbsp;in a recent Realtor.com article. \u201cIt\u2019s not unusual these days for sellers to factor \u2018insurance math\u2019 right alongside property taxes and mortgage rates when deciding where and when to move.\u201d<\/p>\n<\/blockquote>\n\n\n\n<p>The problem for many homeowners considering a move is where to they move to in order to avoid massive insurance premiums.&nbsp;<\/p>\n\n\n\n<p>Insurance costs have skyrocketed in many metros over the last few years. According to the&nbsp;<a href=\"http:\/\/realtor.com\/\">Realtor.com\u00ae<\/a>&nbsp;<a href=\"https:\/\/www.realtor.com\/research\/climate-risk-2025\/\">Housing and Climate Risk Report<\/a>, the estimated average premium for a single-family home in Miami is now $22,700 a year.This breaks down to&nbsp;insurance costs that are 3.7% of the median $614,000 home value in Miami. Industry experts say that once premiums exceed 2% of the home\u2019s value, insurance costs eventually become unsustainable.&nbsp;<\/p>\n\n\n\n<p>According to Realtor.com five metros have already crossed that threshold. <a href=\"https:\/\/www.gethomeinsurancequotes.com\/florida\/miami-homeowners-insurance.php\">Miami<\/a>,\u00a0<a href=\"https:\/\/www.gethomeinsurancequotes.com\/louisiana\/new-orleans-homeowners-insurance.php\">New Orleans<\/a>,\u00a0<a href=\"https:\/\/www.gethomeinsurancequotes.com\/florida\/cape-coral-homeowners-insurance.php\">Cape Coral, FL<\/a>,\u00a0<a href=\"https:\/\/www.gethomeinsurancequotes.com\/louisiana\/baton-rouge-homeowners-insurance.php\">Baton Rouge, LA<\/a>, and\u00a0Oklahoma City, all have average premiums that exceed 2% of the median home value.\u00a0<\/p>\n\n\n\n<p>In addition, the Realtor.com report found that many homeowners are underinsured when it comes to flood risk. Roughly 6 million homes, valued at $3.4 trillion, face a severe or extreme risk of flood damage over the next 30 years and many of these homeowners do not carry flood insurance.<\/p>\n\n\n\n<p>These factors are pushing homeowners to sell as their insurance bill becomes more unmanageable.&nbsp;<\/p>\n\n\n\n<p>\u201cWith insurance rates ever increasing, we have seen the increase in the number of homeowners who are in a situation where it would be more economical to sell the house rather than to remain,\u201d explained&nbsp;<strong>Doug Van Soest<\/strong>, founder of&nbsp;<a href=\"http:\/\/socalhomebuyers.com\/\">SoCal Home Buyers<\/a>&nbsp;in the Realtor.com<\/p>\n\n\n\n<p>As insurance costs continue to rise, some homeowners are forgoing insurance altogether, a risky move unless you can easily afford to cover the cost of rebuilding your home after a disaster strikes. If you have a mortgage on your home this is not an option as your lender will require insurance coverage to protect their investment.&nbsp;<\/p>\n\n\n\n<p>Federal policymakers have started to pay attention to the cost of insurance and how it can impact the ability of homebuyers to purchase a home. Recently Federal Reserve Chairman\u00a0<strong>Jerome Powell<\/strong>\u00a0warned of the rise of\u00a0<strong>\u201c<\/strong>mortgage deserts,<strong>\u201d<\/strong>\u00a0which are regions where the retreat of insurers make it very difficult to buy or sell a home if financing is required.<\/p>\n\n\n\n<p>One way that many homeowners who can no longer afford insurance coverage are going is buying a condo. Downsizing into a condo offloads some of the insurance risk to the HOA master policy which covers the cost of rebuilding after a major disaster. While the cost of HOA master policies has also gone up in recent years, they are usually still affordable as it is spread across so many condo units.&nbsp;<\/p>\n\n\n\n<p>Other homeowners are moving more inland to lower their insurance costs. The Midwest and interior regions of the South tend to be more affordable. While insurance costs may be less in these areas, it is starting to climb. State Farm recently raised homeowner rates roughly 30% in Illinois which will add up to $750 to the average premium per year.&nbsp;<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cMoving is not risk-free,\u201d warned Van Soest in the recent Realtor.com article. \u201cTo counter any savings realized on insurance premiums, higher property tax, more cost of living, and even reduced choice of homes can counter it.\u201d<\/p>\n<\/blockquote>\n\n\n\n<p>Harlow urged homebuyers in the recent Realtor.com to take a broad view of what affordability really means to them. \u201cI\u2019m always counseling sellers to be holistic in their view of value: Don\u2019t just ask, \u2018What\u2019s my premium?\u2019 but \u2018What\u2019s my actual monthly cost of living in this new place?\u2019\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>While states like Florida, California and Louisiana have seen climbing insurance costs for years due to severe weather, flooding and hurricanes, other states, Colorado and Illinois are good examples, are seeing climbing rates as well due to hailstorms and wildfires.\u00a0 As homeowner\u2019s insurance premiums skyrocket, for some policyholders, the math no longer makes sense forcing [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36,3],"tags":[917,379,127,273,65],"class_list":["post-3298","post","type-post","status-publish","format-standard","hentry","category-florida","category-news","tag-cost-of-home-insurance","tag-insurance-cost","tag-mortgage-2","tag-premiums","tag-rates"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.6 - 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