Homeowners across the United States are confronting a new financial strain as insurance premiums climb to levels that rival mortgage payments. A SoFi survey conducted on April 13, 2026, of 520 homeowners revealed that 44% of respondents say their homeowners’ insurance costs are now as high as their mortgage bills.
Premium spikes and policy cancellations
While 49% of surveyed homeowners reported stable premiums and no cancellations over the past three years, the same period saw 39% experience premium increases of more than 20% at a single renewal. The impact varies by region: 62% of respondents in the Western states say premiums match mortgage costs, compared with 34% in the Midwest.
Insurance carriers have been withdrawing from high‑risk states, citing wildfire and hurricane exposure. California, Oregon, Colorado, Arizona, and North Carolina have all reported recent cutbacks. In the West, 38% of homeowners received nonrenewal or cancellation notices in the past two years due to “catastrophic risk,” while 31% faced similar actions in the Northeast, with 26% of those moving onto state‑backed plans.
National fallout
Overall, 23% of homeowners nationwide have been forced off their policies since 2024. Of those, 79% secured a new private carrier and 16% turned to state‑sponsored coverage. The most feared natural threats differ by region: hurricanes and severe windstorms top the list (35% of respondents), while Western homeowners worry most about wildfires and earthquakes.
Flood insurance gaps
Only 41% of the 13% of respondents who view non‑hurricane flooding as their greatest risk have purchased standalone flood insurance. Homeowners in the South (56%) and Northeast (50%) are more likely to have such policies, yet many still assume standard homeowners’ policies cover flood damage—a misconception that leaves them vulnerable.
Mitigation investments lag
When asked about spending on damage‑mitigating upgrades—such as storm shutters or fire‑resistant roofs—just 46% reported spending $1 or more in the past year. Of those, 61% spent $2,500 or less, and only 7% exceeded $10,000. Conversely, 54% spent nothing on mitigation, often believing their policy would cover any weather‑related rebuilding, a belief that is rarely accurate, especially for flood events.
Insurance carriers do offer discounts for homes that adopt mitigation measures, but awareness is low. Only 35% of respondents said their insurer provides such discounts, and 45% are unsure whether discounts exist. Among those who know about discounts, 85% invested in mitigation, though many feel the upgrade costs outweigh the discount benefits.
Potential responses to rising costs
If premiums were to double next year, 48% of homeowners said they would reduce coverage by raising deductibles or switching to lower‑tier policies. One‑third would cut household expenses to absorb the cost, while 7% would consider selling their home and relocating to a lower‑risk area. Twelve percent indicated they would drop insurance entirely, a choice that can trigger lender‑imposed “force‑placed” policies that are often more expensive and less comprehensive.
High insurance costs also raise concerns about home resale. Twenty‑five percent of surveyed homeowners are “very” or “extremely” worried that inflated premiums could make their properties unsellable, especially in a tight real‑estate market where lenders require insurance for mortgage approval.
Public sentiment on federal assistance
More than half (56%) of respondents support the creation of a federal disaster fund to back private insurers and help lower consumer premiums. Only 16% view such a program as an unfair subsidy to residents of high‑risk zones. Support for federal intervention is strongest among those most concerned about insurance costs affecting home sales.
The survey underscores a growing financial pressure on American homeowners, especially in regions prone to natural disasters. As premiums continue to rise, many families face difficult choices between maintaining adequate coverage, investing in home resilience, or altering their living situation.
Original reporting: KEYT (Ventura/Santa Barbara) — read the source article.
