Will Your Home Be Uninsurable in 2024? 1 in 4 Homeowners Worry They Can’t Get Home Insurance

Homeowners insurance might not be the top financial worry for most Americans, but it’s still a major budget item. The average annual cost of homeowners insurance in the U.S. is $2,511, or $209 a month, according to Quadrant Information Services data cited by MarketWatch. That monthly cost is more than the average electricity bill.

Learn More: Housing Market 2024 — 5 Florida Cities That Are Suddenly Affordable

For You: Become a Real Estate Investor for Just $1K Using This Bezos-Backed Startup

Home insurance costs have been heading higher in recent years and will likely keep doing so in the future. A recent ValuePenguin survey of more than 2,000 U.S. consumers found that nearly three-quarters (72%) of home insurance policyholders reported rate hikes in 2023, with 37% citing increases of 5% to 9.99%.

Most policyholders expect insurance rates to continue to climb, the survey found — so much so that they question their homes’ future insurability. Three-quarters expect rate increases in 2024, while more than one-quarter (26%) are worried their homes will become “uninsurable.” This worry is warranted for some homeowners, according to ValuePenguin. Nearly one in five (19%) policyholders reported receiving a nonrenewal notice from their provider.

Check Out: Cheapest Places To Buy a Home in Every State

Here are some other survey highlights:

• 34% of homeowners are struggling to afford their insurance premiums in 2024.
• 8% of homeowners have opted to go without homeowners insurance in 2024.
• 52% of homeowners want the federal government to intervene and regulate their homeowners insurance rates.

Meanwhile, rising costs have forced many homeowners to weigh their options on how to save money on insurance . More than half of policyholders (54%) have shopped around for homeowners insurance and wound up saving an average of $474 a year. Another 52% have asked insurers for discounts, with those who were successful saving an average of $472 a year. Nearly one in three (28%) have downgraded their coverage, saving $414.

But the vast majority of policyholders (87%) haven’t updated or changed their current home insurance policy in at least a year, and about half said that they’ve had their current policy for more than five years.

If you are struggling to afford homeowners insurance, the one thing you should not do is drop your coverage, according to ValuePenguin home insurance expert Divya Sangameshwar.

“Not only will you put yourself at risk for significant financial losses if disaster strikes, but a gap in your home insurance coverage will make it harder for you to find affordable coverage in the future,” Sangameshwar said in a news release.

Homeowners typically get a renewal notice about 30 to 60 days before the end of the policy period, she said. Be sure you take the time to review the new policy.

“It’s important to know what kind of coverage you have and if it reflects the price of rebuilding your home or the value of your personal belongings,” Sangameshwar said. “It’s also important to check if you’re protected against disasters your town is most prone to.”

This article originally appeared on GOBankingRates.com : Will Your Home Be Uninsurable in 2024? 1 in 4 Homeowners Worry They Can’t Get Home Insurance