Certainly, it is advisable to protect your most valuable asset—your home. But what happens when the cost of that protection starts to outpace the homeowner’s income? According to a recent Zillow study, that’s exactly what’s happening across much of the country.
📈 Home Insurance Premiums Are Outrunning Incomes
From 2019 to 2025, the average home insurance premium has jumped 38% nationwide. Meanwhile, the typical homeowner’s income has only grown 22%. That means insurance costs are rising nearly twice as fast as people’s ability to pay for them.
This trend is especially concerning in areas vulnerable to natural disasters. In cities like:
- Miami (up 57%)
- Sacramento (up 54%)
- Jacksonville (up 51%)
- Orlando (up 49%)
- Richmond, VA (up 48%)
…climate risks like wind and wildfire are fueling sky-high premiums. Some homeowners have seen insurance costs spike by over $1,400 per year.
🏡 What Does This Mean for Homeowners?
For many, insurance still represents about 2% of household income, which sounds manageable. But averages can be misleading. In high-risk metros, these rising costs are starting to erode affordability—especially for:
- First-time buyers
- Retirees on fixed incomes
- Households already stretching their budgets
Even a 30% rise in insurance costs could make over 12% of homes in New Orleans unaffordable to the average local buyer. Similar effects are showing up in Oklahoma City and parts of Florida.
🤔 What Can You Do?
As costs climb, here are a few tips to stay ahead:
- Review Your Coverage Annually
Make sure you’re not overpaying for unnecessary coverage—or underinsured for real risks. - Bundle Smart
Auto and home insurance bundles can still save you 10–20% in many cases. - Shop Around
Loyalty doesn’t always pay in the insurance world. Rates can vary widely between carriers. - Mitigate Risks
Install storm shutters, fire-resistant roofing, or security systems. Some carriers reward risk-reduction with discounts. - Factor Insurance into Home Searches
When shopping for a home, consider insurance costs upfront—not just the mortgage payment.
🔍 Bottom Line
Insurance is meant to bring peace of mind, not financial strain. But in today’s climate-challenged world, coverage costs are becoming a growing burden—especially in high-risk regions. As a homeowner, the key is to stay informed, proactive, and strategic. And if you’re feeling overwhelmed, don’t go it alone—talk to a professional who can help you find balance between protection and affordability.