"Homeowners insurance premiums rose 8.5% in 2025 after an 18% increase in 2024, pushing average annual costs to record levels. As costs climb, it becomes a key factor in whether a deal will move forward at all."
"Rising insurance costs are beginning to affect borrower qualification, increase debt-to-income ratios and, in some cases, push borrowers out of eligibility entirely."
"Integrating insurance earlier in the homebuying process is emerging as a practical way to reduce the friction found later on. By surfacing coverage options and potential insurability issues up front, builders can create a more predictable experience for buyers."
"According to Zillow, 15% of individuals asked about buying a home said they were looking for home insurance as one of their first three steps. This disconnect highlights how misaligned the traditional process has become with the current realities for homebuyers."
Homeowners' insurance premiums are rising significantly, causing challenges in the homebuying process. Many buyers discover late that their homes are too expensive to insure or cannot be insured. This uncertainty delays closings and leaves millions uninsured or underinsured. The traditional approach of handling insurance late in the process is becoming ineffective. A proactive model that integrates insurance earlier can help reduce friction and create a more predictable experience for buyers, aligning with their needs and realities in the current market.
Read at www.housingwire.com
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