Many Americans are struggling to make ends meet these days. While buying a home continues to seem out of reach, affording the home you already own is also becoming an increasing burden.
For example, 57% of homeowners have made financial sacrifices to pay for homeowners insurance, according to new Insurify data.
The study surveyed more than 1,000 homeowners about their home insurance premiums. And some of the sacrifices they have made are significant.
Among those who are struggling to afford home insurance, 45% cut back on nonessentials, 37% reduced home maintenance and repairs, 20% borrowed money, 16% avoided medical care, and 10% skipped meals.
If you’re a homeowner or plan to become one, rest assured, you can find a home insurance policy you can afford—without having to make these types of extreme sacrifices. It will just take a bit more work than it once did.
Why is this happening?
According to Matt Brannon, senior economic analyst at Insurify in Cambridge, MA, the typical home insurance premium in America has grown nearly three times as fast as inflation over the past four years—46% compared to 16%.
Two overarching factors in rising premiums are the cost of rebuilding and the threat of extreme weather.
“The cost of homebuilding materials surged during the [COVID-19] pandemic amid supply chain issues. Insurance pricing is based on that replacement cost. So, maybe the same home you owned in 2019 now costs 40% more to rebuild, and to maintain full replacement level coverage, you’d need to pay higher premiums reflecting that increase,” explains Brannon.
At the same time, there’s an increasing financial toll from extreme weather and natural disasters, putting more properties at risk than ever before.
“A greater chance of a home being destroyed in a disaster means more risk for insurers, which often causes them to raise prices to offset their liability. Americans witnessed 23 billion-dollar weather disasters in 2025, the third most on record, behind only 2023 and 2024,” adds Brannon.
When to consider home insurance costs
Rising premiums make it essential to plan for home insurance early on—yet Insurify’s data found that nearly half of the homeowners surveyed didn’t consider insurance costs when buying their home.
“Insurance often is the last thing on homebuyers’ minds and can catch them off guard at closing. Most of the focus is on the mortgage payment, taxes, and HOA fees—not insurance,” explains Brad Spurgeon, owner and CEO of Brad Spurgeon Insurance Agency in Texas City, TX.
It’s important to think about home insurance rates during the early stages of the homebuying process—long before you’re already financially and emotionally invested in a property.
After all, home insurance may inhibit your ability to actually buy a home.
“I live in Florida, and good real estate agents will remind you that your monthly mortgage payment can change significantly based on home and flood insurance pricing in your area,” says Brannon.
If you find your dream house, but it’s in an area with high hurricane risk, you’re probably looking at higher insurance costs.
“This doesn’t necessarily mean you can’t buy that dream home. But be aware of how much you need to budget for insurance. Knowing these costs before you put in an offer can help avoid ‘payment shock’ that forces last-minute sacrifices, like taking on a higher deductible or getting less coverage than you need,” adds Brannon.
Ways to save on coverage
If you’ve already committed to a property with costly home insurance or have your eye on one with higher-than-average rates, you’re not out of luck.
These simple yet effective strategies can help you land a good deal on coverage:
Shop around and get multiple quotes
Homeowners often think of insurance as a “set it and forget it” expense when it shouldn’t be.
“We recommend comparing rates from at least three different companies every six months,” says Brannon.
Make sure you’re comparing the exact same coverage limits and deductibles. Otherwise, a lower premium could reflect lower coverage levels, which isn’t necessarily a better deal.
Be proactive about discounts
Don’t underestimate the power of asking about discounts. Many insurers offer savings for seniors, service members, those installing security systems, those paying in full, or those bundling policies.
The best discounts aren’t always advertised, so it’s a good idea to ask an insurance agent or the company directly for all the opportunities that might be available to you.
Update your home with climate-friendly features
It might seem counterintuitive to spend the money while trying to save on your insurance, but it often pays off in the long run.
“Installing a fortified roof or hurricane shutters in a place prone to severe weather, for example, reduces the risk of property damage and therefore your risk to the insurance company,” explains Brannon.
In fact, many states have programs that grant homeowners money to upgrade their roofs.
“If you can afford to spend the funds now, it can save you money in the long run. Some states also require insurers to provide discounts for homeowners who make these mitigating upgrades,” adds Brannon.
