Home Insurance Costs Surge, Strain Homeownership

Home insurance costs are rising sharply across several markets, driven by increasingly severe weather, catastrophe losses and higher construction costs. In Canada, storms in Ontario and Quebec caused an estimated $439 million in insured damage, while annual insured weather losses have surged compared with previous decades, putting pressure on premiums, deductibles and coverage availability. Australian homeowners have likewise faced steep increases, with average premiums rising 51% in five years and some households responding by reducing contents coverage or dropping optional protections. In the United States, property insurance now accounts for nearly 10% of the average mortgage payment, although homeowners who changed carriers paid an average of 6.6% less without reducing coverage. A Consumer Federation of America analysis also found that homeowners in predominantly Hispanic and Black ZIP codes pay substantially higher premiums than those in predominantly white communities, even for identical policies, deepening existing racial and affordability disparities.