Good Morning, Noyackers!
Skyrocketing property insurance costs are reshaping the housing market, making homeownership—once a key to financial security—more elusive for homebuyers, especially young adults.
This week, we’ll break down why premiums are rising, how they’re impacting the housing market, and steps you can take to stay ahead. We are also joined by a special guest on our podcast: Todd Rockefeller, a Personal Insurance Practice Leader with over 3 decades of experience in the industry. Don’t forget to share your thoughts in our quick poll—we want to hear from you!
🏡 The Property Insurance Squeeze: A Barrier to Homeownership
After years of saving, you’re ready to step into your dream home—but soaring property insurance premiums create an unexpected roadblock. Whether for modest homes or luxury properties, rising costs are reshaping the affordability of homeownership.
By the Numbers: Modest Homes
- National Average: $1,750 to $2,500 annually, with costs rising 13% (adjusted for inflation) since 2020.
- State Highs: Oklahoma ($5,858), Louisiana ($5,710), and Nebraska ($5,121) top the list.
- State Lows: Hawaii ($515), Delaware ($860), and Vermont ($870) offer the lowest premiums.
By the Numbers: Luxury Homes
- Dramatic Increases: Premiums for homes with $1.5M+ mortgages rose 130% from 2020 to 2024.
- Coastal Risks: High-end homes in areas like Los Angeles, Aspen, and Florida have seen costs triple.
- Rebuilding Costs: Policies for a $5M home now cost 20% to 30% more, adding $1M+ to rebuild.

👊🏽 The Impact on Homeownership
- Market Stagnation: High-risk properties linger unsold as buyers balk at costs.
- Regional Gaps: Insurance premiums in high-risk ZIP codes are 82% higher than in safer areas.

Why Are Insurance Costs Skyrocketing?
Several factors are driving the surge in property insurance premiums:
- Climate Change: Extreme weather events like hurricanes, floods, and wildfires are becoming more frequent and severe. Insured losses hit $125 billion in 2022 alone.
- Inflation: Construction materials and labor costs have risen by 40% since 2019, increasing the cost of rebuilding and claims.
- Reinsurance Costs: Insurers buy insurance themselves to share risks, but as reinsurance costs rise, they pass those expenses onto homeowners.
- Regional Disparities: High-risk areas like coastal and wildfire-prone regions are seeing the sharpest increases, with some insurers pulling out altogether.
The result? Homeowners and renters alike face rising costs and fewer options for coverage.

🔍 The Bigger Picture: How Rising Costs Are Reshaping the Housing Market
Rising premiums aren’t just a line item on your budget—they’re reshaping the entire housing market in profound ways:
- Housing Affordability: Higher premiums are making homeownership less attainable for many. Renters are also feeling the squeeze as landlords pass on insurance hikes through rent increases, worsening the affordability crisis.
- Falling Property Values: Research shows a $100 increase in annual premiums can decrease property values by up to $25,000 in flood-prone areas. This has a ripple effect on local economies, reducing tax revenues and funding for public services.
- Stalled Home Sales: High-risk properties linger on the market as buyers balk at the added costs of insurance, leading to sluggish sales in vulnerable regions.
- Regional Migration: Buyers are leaving high-risk areas in favor of “climate havens”—regions with lower risks and more stable insurance costs. This shift is reshaping population patterns and increasing demand (and prices) in these safer zones.

📋 Here is your insurance action plan
While systemic reforms are necessary, there are immediate steps you can take to manage rising insurance costs:
- Shop Around for Coverage: Work with independent agents to compare policies and ensure you’re getting the best combination of coverage and price.
- Raise Your Deductible: Opting for a higher deductible reduces monthly premiums, but ensure you have an emergency fund in place to cover any claims.
- Bundle Policies: Combine home and auto insurance with the same provider for potential savings of up to 20%.
- Invest in Resilience: Disaster-proofing your home not only protects your property but can also reduce premiums by up to 25%.
- Storm Protection: Install hurricane shutters, impact-resistant windows, or reinforced roofs.
- Fireproofing: Use ember-resistant vents, non-combustible siding, and clear defensible
- Flood Mitigation: Elevate utilities, install backflow valves, and improve drainage systems.
- Adopt Smart Technology: Equip your home with smart fire alarms, leak detectors, and motion sensors. These systems not only enhance safety but can qualify you for insurance discounts.
🔗 Looking Ahead: Innovative Solutions to Rising Costs
As premiums climb, new insurance solutions are emerging to help homeowners manage costs:
- Parametric Insurance: This innovative coverage pays out automatically when predefined triggers—like a hurricane’s wind speed—are met. It eliminates the hassle of lengthy claims processes, providing fast relief.
- AI-Driven Policies: Insurers are using AI to assess risks more precisely, rewarding homeowners who invest in resilience with lower premiums. These tools offer a forward-looking approach to managing risks in high-risk areas.
- Community-Based Insurance Programs: Some regions are exploring collective insurance models, pooling resources to offer more affordable rates to local homeowners.
These solutions reflect a growing recognition of the need for innovation in the face of climate change and rising costs.
✅ The Bottom Line
As premiums climb, new insurance solutions are emerging to help homeowners manage costs:
Rising property insurance premiums are reshaping the housing market, creating hurdles for Millennials and Millennial HENRYs, especially first-time homebuyers. To navigate this challenge, young adults must budget proactively, seek resilient, low-risk properties, and invest in upgrades that lower premiums. Annual policy reviews are essential to ensure adequate coverage, avoiding the costly risks of underinsurance.
For investors, the focus must shift to resilient developments and “climate haven” markets that promise long-term stability and returns. Policymakers have a role to play, but individuals and communities cannot wait. By taking action now, you can safeguard your financial future and build a legacy of stability and opportunity.
At NOYACK, we see wealth as a tool for love—investing in your family, future, and community. Together, we can transform challenges into opportunities for generational impact. Let’s build smarter, stronger, and with purpose.
Want to learn more? Tune in to our latest podcast episode below for an in-depth look into the Property Insurance and Home Ownership industry with our guest expert: Todd Rockefeller from Acrisure