BiggerPockets Daily Insurance Hikes Rattle the Market
Sep 30, 2025
Home insurance premiums are soaring, outpacing incomes by a significant margin. With a nationwide spike of 38% since 2019, cities like Miami and Sacramento are feeling the crunch the hardest due to climate risks. This surge is hitting first-time buyers, retirees, and small landlords particularly hard, threatening housing affordability. Rising costs for insurance, combined with doubled mortgage payments, are reshaping where people can afford to live today. It's a pressing issue that demands new strategies for buyers and investors.
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Insurance Costs Outpace Income
- Zillow finds national homeowners insurance premiums rose 38% since 2019 while median homeowner income rose 22%.
- Climate-driven risks like hurricanes, wildfires, and flooding are the main drivers of that gap.
High-Risk Metros Lead Increases
- Miami, Sacramento, Jacksonville, Orlando and Richmond show the largest premium increases tied to wind and wildfire risk.
- These metros face concentrated property value at high climate risk, amplifying insurer exposure.
Rising Premiums Hit Vulnerable Households
- The typical homeowner now pays about $500 more annually than in 2019, with Miami nearing $1,500 extra.
- Higher bills hit retirees, first-time buyers, and small landlords unevenly and worsen affordability.