12% of Americans Taking a Risk and Living Without Home Insurance In 2023
Home insurance traditionally provides peace of mind against everything from flooding, fires, hurricanes, and earthquakes — but rising premiums have prompted many homeowners to opt out of coverage. According to the Insurance Information Institute, a record 12% of Americans reported lacking home insurance last year, as more homeowners fully paid off their homes. However, homeowners are taking a gamble — even if they believe they’re saving money.
- Between 2021 and 2023, annual home insurance costs jumped ~20% — with rates in 19 states climbing 10%+ last year due to an influx of claims linked to floods, wildfires, and other natural disasters.
- Today, the average insurance premium stands at $1,759 per year for $250K worth of coverage — up 23% from the previous year. Insurers have become more hesitant to cover homes in high-risk areas, contributing to these escalating costs.
Risks galore: While many Americans justify forgoing insurance due to a lack of recent disasters, most mortgage lenders require a policy until the loan is fully paid off. Rising premiums aren’t exactly greedflation, as evidenced by insurers facing over$55B in losses on property-casualty policies since 2021. These losses are a warning for those considering going without coverage — especially in disaster-prone regions. Even though premiums may seem heavy, it’s crucial for Americans to weigh the potential consequences — including the risk of losing their most valuable asset, their home.
