Construction Physics β’ 32987 implied HN points β’ 23 Jan 25
- Homeowners insurance costs have risen a lot over the past years, with a 33% average increase between 2020 and 2023. This has made it tough for many to afford insurance, leading some to rely on state-backed options.
- While rising construction costs and home sizes explain part of the increase, climate change and more frequent severe weather events are likely major factors driving up insurance prices further.
- Interestingly, even though some types of damage have become less frequent, the cost to repair them has increased, particularly for wind, hail, and water damage, which contribute significantly to higher insurance losses.