Half of Homeowners Fear Losing Insurance as Costs Rise, Survey Shows

Half of homeowners worry their homes will be uninsurable in the future, a new survey shows.

The results of a new survey from ValuePenguin represents a sharp rise from a 2024 poll that shows 26% worried their homes will be uninsurable in the future.

The biggest number (26%) believe inflation will be the cause of their home becoming uninsurable, followed by 16% who believe it will be due to the home insurance crisis and 12% who believe it will be due to climate change. Roughly one-third (32%) said they were not worried about their home becoming uninsurable, and 18% said they were not sure.

This concern may be fueled by an increase in non-renewal notices, which 25% of policyholders reported receiving, up from 19% last year’s poll.

The survey also shows 67% of homeowners saw their insurance rates rise in 2024, with 38% experiencing hikes of 10% or more. Looking ahead, 75% anticipate further rate increases in 2025, and 44% say their premiums have become more difficult to afford. In response, 34% have downgraded or reduced coverage to manage costs.

Younger generations are worried their homes will become uninsurable:

• 84% of Gen Zers (ages 18 to 28)
• 67% of Millennials (29 to 44)
• 38% of Gen Xers (45 to 60)
• 27% of Baby Boomers (61 to 79)

Policyholders with children younger than age 18 (63%) are more likely to be concerned about the insurability of their homes. Those without children (51%) have less stress regarding this issue.

Gen Z policyholders (65%) are most likely to downgrade or reduce coverage to save, followed by Millennials (42%), Gen Xers (24%) and Baby boomers (22%)

More than half (56%) of policyholders have asked their insurer for discounts. By generation of those who will most likely ask:

• Millennial (66%)
• Gen Zers (64%)
• Gen Xers (52%)
• Baby boomers (46%)

The survey also found that 58% of policyholders have shopped around for new insurance.

ValuePenguin commissioned QuestionPro to conduct an online survey of 1,999 U.S. consumers ages 18 to 79 from Feb. 20 to 21. The survey was administered using a nonprobability-based sample.