A Financial Health Network Report Finds Rising Home Insurance Costs Straining Household Finances Across the United States: Only 54 Percent of Households Are Confident Their Insurance Would Cover an Emergency, the Lowest Since Tracking Began in 2018
A new report from the Financial Health Network puts homeowners insurance affordability on the national financial health agenda. The report, Rising Costs, Shrinking Coverage: How Homeowners Insurance Shapes Financial Health, is supported by JPMorganChase and is the first in a series examining the changing market. It was released in Chicago on November 10, with further coverage published on November 12.
The report combines a review of existing research with structured interviews of more than 30 experts, including regulators, reinsurance brokers, mortgage lenders and consumer advocates. It says rising premiums and shrinking coverage options are straining household budgets, threatening home equity, and making it harder to save, build wealth and buy homes.
Its Financial Health Pulse 2026 United States Trends Report found that only 54 percent of households were at least somewhat confident their insurance would cover them in an emergency, the lowest share since tracking began in 2018. Insurance Research Council data cited in the report shows insurance taking a share of household income that rose from 1.2 percent in 2000 to 2.1 percent in 2022.
Research from the Federal Reserve Bank of Chicago cited in the report links a 1,000 dollar increase in annual premiums to a significant rise in mortgage denials, and Federal Reserve Bank of Dallas research links higher premiums to a greater likelihood of missed mortgage payments. The report also notes that nonrenewal rates increased in 35 states between 2018 and 2023, and uses four state case studies.
A follow up mixed methods study, including a nationally representative household survey, is under way, with findings and homeowner stories to be published in 2027.
Source: Financial Health Network
Published by GSM · USA (original Chinese edition)
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