Realtor.com: Recent, Prospective Homebuyers Stressed About Insurance Affordability

(Image courtesy of Tom Fisk/pexels.com)

Realtor.com, Santa Clara, Calif., released a new survey finding that 75% of recent and prospective homebuyers believe homeowners insurance could become unaffordable for them.

The vast majority–88%–believe they will pay more for homeowners insurance in the future, and 42% have already experienced a rise in their insurance costs.

The majority, at 58%, said they will have to or are likely to forgo homeowners insurance if the costs become too high. For Gen Z buyers, that metric jumped to 76%, despite the fact that the majority of young homeowners have a mortgage and are therefore required to have insurance.

Sixty-five percent of those surveyed are concerned about obtaining and maintaining insurance.

These stressors are also affecting the home search process. One-third have had to completely change the geographic area where they are searching for a home, and 30% report casting a wider net. Almost 25% say they completely changed strategies due to insurance challenges.

In contrast, only 30% have looked into natural disaster risk data for their home or prospective home, though 44% say they plan to do so.

“Homeowners insurance offers financial protection for consumers that may help cover damage to homes and personal property from an extreme weather event or fire, while also providing personal property and liability coverage,” said Realtor.com Chief Economist Danielle Hale. “But these benefits come with an upfront cost that has risen as weather events have become more frequent and impactful and rebuilding costs climb. Homeowners are looking for strategies to lower costs including adjusting their home searches and potentially short-charging or forgoing coverage altogether.”