Harsh weather isn’t just melting ice caps — it’s draining homeowners’ wallets. As natural disasters intensify, home insurance premiums are soaring to unprecedented heights. Nearly 13% of US homeowners with mortgages were paying $3K or more annually for home insurance last year, according to Axios.

• The 2023 American Community Survey shows that ~58% of US homeowners spend less than $1.5K per year on home insurance.
• However, a significant number of homeowners in coastal states pay over $3K annually for home insurance, with Florida at 36.5%, Louisiana at 32.8%, and Texas at 25.6%.

The perfect storm: Roughly half of US homes are at risk from climate-related damages like flooding, wildfires, and extreme heat. Alongside environmental threats, rising reinsurance costs, increasing home repair expenses, and the insurance industry’s cautious stance on climate risks pushed home insurance premiums up by 33% on average between 2020 and 2023, far outpacing inflation. These escalating costs have burdened millions of homeowners already struggling with mortgage payments and have made homeownership harder to achieve for would-be buyers.