ValuePenguin: Two-Thirds of Home Insurance Policyholders Say Rates Rose Last Year

(Chart courtesy of ValuePenguin. Thumbnail photo courtesy of On Shot/pexels.com)


ValuePenguin, a division of LendingTree, Charlotte, N.C., released a new survey finding that two in three home insurance policyholders say their rates rose in 2024.

However, that’s down from 72% who said their rates rose during the 2024 survey.

Three-quarters believe their home insurance rates will rise in 2025, with 44% saying their premiums are more difficult to afford now than in prior years. Thirty-four percent of respondents report having downgraded or reduced their coverage to deal with costs.

Additionally, 50% of policyholders worry their homes will become uninsurable in the future, up from 26% in 2024’s results.

Younger generations are more concerned, with 84% of Gen Z policyholders worried their homes will become uninsurable, and 67% of millennials reporting the same. In contrast, only 27% of Baby Boomers hold that fear.

Moreover, 25% of all respondents report having received nonrenewal notices, up from 19% last year. Of those who received a nonrenewal notice, 42% said they shopped around for a new policy and 35% said they renegotiated their policy.

Nearly a quarter–at 24%–of policyholders believe home insurance is no longer worth the money, and 31% have considered “self-insuring”–essentially dropping home insurance and planning to pay for any repairs out of pocket.