The cost of homeowner’s insurance has been rapidly increasing in recent years, with premiums rising about 20% in 2022 and 2023. In 2024, it is estimated to increase by another 6%. Bloomberg Intelligence reports that the cost of insuring a home has increased by about 50% from 2019 to 2023. This significant increase in premiums is primarily due to the rising damages from weather events and inflation, which has also raised the cost of repairing home catastrophes. Despite the fact that renter’s insurance is included in the Consumer Price Index, it has not seen as significant of an increase as homeowner’s insurance.
The exclusion of homeowner’s insurance from the Consumer Price Index means that the reported inflation rate does not accurately reflect the true increase in costs for many retirees and pre-retirees. As a result, individuals may not be adequately prepared for the rising expenses associated with owning a home. The increasing costs of homeowner’s insurance have made it prohibitively expensive for some homeowners in certain areas, leading to the withdrawal of insurers from some markets.
For retirees planning to move or stay in their current homes during retirement, it is essential to consider the cost and availability of homeowner’s insurance. When reviewing retirement plans, individuals should ensure that estimates for future insurance costs are reasonable based on current trends and circumstances. It is also advisable to seek out multiple quotes and compare coverage options to find the best policy for your needs and budget. By staying informed and proactive about homeowner’s insurance costs, retirees can better prepare for this significant expense in their retirement years.
