Homebuyers Shift Search Strategies As Homeowners Insurance Costs Rise And Access Challenges Grow

A recent Realtor.com survey highlights growing concerns among prospective and current homeowners about the rising costs and accessibility of homeowners insurance. Nearly 75% of respondents said continued cost increases could make coverage unaffordable, while 88% expect to pay more in the future. Already, 42% report their premiums have gone up, and more than half have faced or expect difficulties in obtaining or renewing insurance.

The survey found that affordability pressures are pushing some buyers to reconsider their options altogether. More than half of respondents indicated they might forgo homeowners insurance if costs rise too high. This sentiment is particularly strong among younger buyers—76% of Gen Z participants expressed willingness to drop coverage, despite the fact that many of them require insurance to qualify for a mortgage.

Insurance challenges are also influencing how and where buyers shop for homes. About one-third of respondents reported changing their target geography, and another 30% said they have expanded their initial search area to adapt to insurance cost and availability. Gen Z buyers were more likely to make these adjustments, while Baby Boomers were least likely to change their homebuying strategy.

Industry experts note that while homeowners insurance provides important financial protection against natural disasters, fires, and liability, the increasing frequency of severe weather events and higher rebuilding costs are driving premiums upward. Buyers are responding by rethinking their housing decisions, researching natural disaster risks, and in some cases, considering whether to reduce or forgo coverage.