Homeowners across the United States are confronting a new financial strain: insurance premiums that rival their monthly 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. The pressure is most acute in the western states, where 62% of surveyed residents report premiums matching mortgage amounts.
Survey Highlights
While nearly half of respondents (49%) reported stable premiums and no cancellations over the past three years, the overall picture shows significant volatility. Almost two‑in‑five homeowners (39%) experienced a premium increase of more than 20% at a single renewal.
Insurance carriers have been pulling back from high‑risk regions. States such as California, Oregon, Colorado, Arizona and North Carolina have seen recent cutbacks, leaving many homeowners with nonrenewal or cancellation notices. In the western states, 38% of respondents reported being forced to find a new carrier due to “catastrophic risk” concerns. The Northeast saw a similar trend, with 31% receiving cancellations and 26% of those moving onto state‑backed plans.
Impact on Homeowners
Nationally, 23% of homeowners have been dropped from their policies since 2024. Of those, 79% secured a new private carrier, while 16% turned to state‑sponsored coverage. The threat of losing coverage has prompted many to consider drastic measures. When asked how they would respond if premiums doubled next year, 48% said they would raise deductibles or switch to lower‑tier policies, 33% would cut household expenses, 7% would sell their home and relocate, and 12% would drop insurance entirely.
Dropping coverage can trigger mortgage clauses that allow lenders to impose “force‑placed” insurance, often at higher cost and with less coverage. Moreover, Fannie Mae and many lenders require homeowners’ insurance, meaning high premiums could hinder home sales and tighten an already constrained real‑estate market.
Disaster Preparedness Gaps
When asked about the greatest threat to their property, 35% of respondents cited hurricanes and severe windstorms. Regional concerns varied: western respondents worried most about wildfires and earthquakes, while those in the Midwest and South emphasized tornadoes, flooding and hurricanes.
Only 41% of those who identified non‑hurricane flooding as their biggest risk had purchased separate flood insurance. Southern and Northeastern homeowners were more likely to have flood policies (56% and 50% respectively). More than 18% believed their standard homeowners’ policy covered flood damage, a misconception that leaves many exposed.
Mitigation Efforts
Investments in damage‑mitigating home improvements remain modest. In the past year, 46% of respondents spent $1 or more on upgrades such as storm shutters or fire‑resistant roofs, with 61% of those spending $2,500 or less. Conversely, 54% spent nothing on mitigation, often assuming their policy would cover rebuilding costs—a risky assumption, especially for flood damage.
About 35% of homeowners reported that their insurers offer discounts for mitigation measures, and 85% of that group invested in protective upgrades. However, many still find the cost of upgrades outweighs the discount, though 73% of those receiving discounts still chose to improve their homes.
Potential Federal Relief
More than half of surveyed homeowners (56%) expressed support for a federal disaster fund to backstop private insurers and help lower premiums. A smaller segment (16%) viewed such a program as an unfair subsidy to residents of high‑risk areas. Support for federal assistance was strongest among those most concerned about insurance costs affecting home resale.
Overall, the survey underscores a growing affordability challenge for homeowners, especially in regions prone to natural disasters. As premiums continue to climb, many families face difficult choices that could impact their financial stability and the broader housing market.
Original reporting: KRDO (Colorado Springs metro) — read the source article.
