As insurance costs continue to rise, homeowners are adapting by switching providers and opting for higher deductibles. Reports indicate that in 2024, 11.4% of borrowers switched insurance policies, driven by rising non-renewal rates and the search for lower premiums. Miami recorded nearly 25% of mortgage holders switching insurance. However, in certain areas like California, switchers often incur higher costs. Moreover, borrowers are adopting higher deductibles, averaging a 19% increase, potentially as a strategy to cope with escalating premiums in the housing market.
ICE's head of mortgage and housing market research, Andy Walden, reported a record 11.4% of borrowers switched insurance providers in 2024, rising from 9.4% in 2023.
In high-cost markets, borrowers are increasingly switching providers, with nearly 25% of Miami mortgage holders changing insurance in 2024, seeking lower premiums.
While borrowers switching in Miami mostly saved money, California saw an opposite trend where switchers paid at least 15% more on average than those who stayed.
Homeowners taking out mortgages in 2024 have a 19% higher deductible than average, suggesting they are adjusting to offset rising insurance premiums.
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