Pricey Insurance Premiums Push Homebuyers Away

By: Anneken Tappe · August 30, 2023 · Reading Time: 2 minutes


As extreme weather events have intensified, so has the cost of home insurance premiums. And while some homeowners rework their budgets to accommodate the inflated costs, others simply skip home insurance altogether.

Ditching home insurance might save cash in the short-term, but it’s also a major gamble. By taking this risk, homeowners are essentially betting they have enough money saved to either rebuild their home or move elsewhere, should disaster strike and destroy their home.

Coverage Costs

This year, the national average for home insurance increased to $1,428 annually, up 20% from 2022, based on a $250,000 dwelling.

Home insurance coverage typically covers the cost to replace your home and its contents in the event of damage or theft. The cost of your premium will vary widely depending on the size and value of your home, as well as the region in which you live.

For example, as peak wildfire season pressures California and a series of hurricanes touch down on the Florida coast, the cost of home insurance has risen by thousands of dollars for high risk areas in those states. Meanwhile, some insurers have ceased to provide services in those areas entirely.

Weathering the Storm

Approximately 12% of homeowners in the U.S. don’t have home insurance. But choosing to go without insurance is a major decision with potentially life-altering consequences.

If your dwelling was destroyed by a fire, flood, earthquake or any other disaster, you wouldn’t just lose the house and its contents. You’d also be on the hook to remove your home’s remains and rebuild out of pocket.

That said, most mortgage lenders require clients to have home insurance. Only those who own their home outright have the chance to take the risk and ditch insurance.

In that case, be sure you have enough money saved to weather the storm.

Check out homeowners insurance options offered through SoFi Protect.

Check it out

SoFi is compensated by Lemonade for each customer that completes an application through the SoFi- Lemonade partnership.
Not available in all states.

Lemonade Insurance Agency (LIA) is acting as the agent of Lemonade Insurance Company in selling this insurance policy, in which it receives compensation based on the premiums for the insurance policies it sells.

LEMONADE is a registered trademark of Lemonade, Inc.

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