ICE Mortgage Monitor: Property Insurance Costs Rose at a Record Rate in 2024 Prompting Homeowners to Shop for Better Rates, Accept Higher Deductibles
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The average annual property insurance premium among mortgaged single-family homes rose by a record
+ (+$276 14% ) to in 2024, capping a five-year rise of$2,290 + (+$872 61% ) -
Seattle (+22% ),Salt Lake City (+22% ) andLos Angeles (+20% ) saw the largest percentage increases in 2024, while the largest increases by dollar amount were inDallas (+ ) and$606 Houston ( )$515 -
Property insurance premiums in
Florida increased by less than half the national average on a percentage basis, but rates there remain among the highest in the country -
A record
11.4% of borrowers switched carriers in 2024, up 2 percentage points from 2023, likely due to a combination of rising nonrenewal activity and borrowers shopping for lower premiums -
Homeowners are opting for higher deductibles in exchange for premium savings, with new borrowers having
19% ( ) higher deductibles and$390 12% ( ) lower premiums than the market at large$284
Property insurance costs for mortgaged single-family homes rose by a record
“While it’s no surprise that insurance costs are rising, we’re beginning to see emerging trends in terms of how homeowners are responding to the higher cost environment,” said Andy Walden, Head of Mortgage and Housing Market Research for Intercontinental Exchange. “We’re seeing increases in both the share of borrowers switching policies and borrowers taking on higher deductibles as a way to combat rising premiums.”
“ICE loan-level data shows that a record
Markets with the highest insurance costs, which have also been the focal point of non-renewal activity in recent years, unsurprisingly have the highest percentage of borrowers switching providers. Nearly a quarter of mortgage holders in
“The average borrower switching policies in
“California, where insurers have been reducing their footprint due to strict regulations and rising wildfire risk, stands out as a notable exception,” Walden said. “Borrowers who switched providers in
Separate research from the ICE Climate team suggests borrowers taking out mortgages in recent years may also be taking on higher deductibles to help offset rising premiums. Homeowners who took out mortgages in 2024, for example, had a
“As borrowers become more interested in shopping for the best insurance rates, there is an emerging opportunity for lenders and servicers to meet this need with embedded insurance comparison tools both at the front end of the pipeline and for people with existing mortgages,” Walden said. “ICE’s integrations with insurance providers in both our origination and servicing platforms have been aimed at exactly this opportunity as part of our continuing goal of making home finance as simple and transparent as possible.”
Further information on this and other topics can be found in this month’s Mortgage Monitor.
About Mortgage Monitor
ICE manages the nation’s leading repository of loan-level residential mortgage data and performance information covering the majority of the overall market, including tens of millions of loans across the spectrum of credit products and more than 160 million historical records. The combined insight of the ICE Home Price Index and Collateral Analytics’ home price and real estate data provides one of the most complete, accurate and timely measures of home prices available, covering
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Source: Intercontinental Exchange
Category: Mortgage Technology
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Source: Intercontinental Exchange