Newsweek: Home Insurance Providers Have Dropped 1 in 4 US Homeowners

[Dennis Donovan]

Newsweek - Home Insurance Providers Have Dropped 1 in 4 US Homeowners

Published Apr 02, 2025 at 11:08 AM EDT
Giulia Carbonaro

One in four U.S. homeowners have been dropped by their insurer last year, according to a new survey.

Half of those lucky enough to still hold a homeowner insurance policy told personal finance company ValuePenguin, part of LendingTree, that they are worried their properties will become uninsurable—double the rate reported in 2024.

Why It Matters
Homeowner insurance premiums have skyrocketed across the country over the past few years, as companies facing rising costs—including for reinsurance and repairs—and higher catastrophe exposure pass these expenses on to policyholders.

In some of the country's most disaster-prone areas, companies have cut coverage by either refusing to renew existing policies or announcing they would not accept any new applications.

Those who have had their policies canceled or not renewed stand to lose everything once the next extreme weather inevitably strikes should they not be able to find an affordable alternative—as the recent wildfires in Los Angeles County have shown.

What to Know
While the number of homeowners dropped by their insurer is significant, it is still much smaller than that of policyholders who have seen the cost of their coverage rise in 2024—two in three (67 percent) across the country. That was down from 72 percent the year before—which saw dramatic rate hikes.

Among those who have reported increases, 38 percent said their rates were now 10 percent or higher.

A majority of homeowners think that things won't get better this year. Three-quarters (75 percent) believe that their rates will rise throughout 2025, and 44 percent said premiums are more difficult to afford now than in prior years.

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[Wingus Dingus]

1. This can't be right. Seem very high. I can believe 1 in 8 or 10,

because of CA/FL/TX--but one in four being dropped from insurance?

[bucolic_frolic]

2. Beware lowered coverage with rising rates.

Assuming lower coverage is a depreciation issue - aging roof, paint. Look at the details of the policy to compare with last year's version.

[BlueKentuckyGirl]

3. Mortgages and Insurance

Isn't it necessary to have homeowner's insurance if you have a mortgage on your home? Or is that just true in my state? How will these people satisfy the conditions of their mortgage if they can't obtain insurance? Seems to me, people will see the banks call in their mortgages and they will be out of their homes. This is awful.

[Blue Full Moon]

4. A way to foreclosure

[BlueKentuckyGirl]

5. yep

Sure seems that way, doesn't it?

[Xolodno]

6. Insurance employees are also taking a beating, as are Agents.

There have been a lot of layoffs in this sector, flooding the job markets.

Agents are also getting hit, they rely on commission. So they are scrambling to find new coverage for their policy holders. Often times its too high. Severe weather events are making companies and re-insurers nervous.