A new SoFi survey of 520 homeowners across the United States reveals a growing financial strain: 44% of respondents say their homeowners‑insurance premiums have risen to the point where they rival monthly mortgage payments. The pressure is most acute in the Western states, where 62% of surveyed owners report insurance costs equal to their mortgage, compared with 34% in the Midwest.
Premium spikes and policy cancellations
While 49% of participants say their premiums have remained stable over the past three years, 39% experienced a single‑renewal increase of more than 20%. In the last two years, 38% of homeowners in the West received non‑renewal or cancellation notices citing “catastrophic risk,” and similar trends appeared in the Northeast (31%) and nationally (23%). Those cut off were forced to find new private carriers or, in some cases, state‑backed plans.
Regional risk concerns
When asked about the greatest threat to their property, 35% of respondents cited hurricanes and severe windstorms. Residents of the West emphasized wildfires and earthquakes, while Midwesterners and Southerners highlighted tornadoes, flooding, and hurricanes. Only 13% identified non‑hurricane flooding as their top risk, and among that group just 41% had purchased separate flood insurance.
Home‑improvement and mitigation spending
Mitigation efforts remain uneven. In the past year, 46% of homeowners spent at least $1 on damage‑mitigating upgrades such as storm shutters or fire‑resistant roofing; of those, 61% spent $2,500 or less, and only 7% invested more than $10,000. Conversely, 54% reported no spending on mitigation, often believing their policies would cover any weather‑related rebuilding—a belief that is typically unfounded, especially for flood damage.
Discounts for resilient homes
About 35% of surveyed insurers offer premium discounts to policyholders who make protective upgrades. Among those who received such discounts, 85% invested in mitigation measures, and 73% said the upgrades were worth the discount despite some feeling the cost exceeded the savings.
Potential consumer responses to rising costs
If premiums were to double next year, 48% of respondents 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 said they would drop insurance entirely, a choice that can trigger lender‑imposed “force‑placed” policies that are often more expensive and less comprehensive.
Calls for federal assistance
More than half of those surveyed (56%) support the creation of a federal disaster fund to backstop private insurers and help lower consumer premiums. Only 16% view such a program as an unfair subsidy to residents of high‑risk zones.
What this means for families
Rising insurance costs threaten both financial stability and home‑saleability. A quarter of respondents expressed strong concern that sky‑high premiums could make their homes difficult to sell, especially in tight real‑estate markets where lenders require proof of coverage.
Homeowners are urged to review their policies, explore mitigation discounts, and consider the long‑term financial impact of insurance decisions on their families and neighborhoods.
Original reporting: KTVZ (Central Oregon) — read the source article.
