Home insurance costs are rising across the country as insurers warn that hurricanes, wildfires and other weather-related disasters are making home ownership more expensive. But homeowners in particular aren’t buying that story.
A new survey by the Pew Research Center found that 71% of US homeowners say their insurance costs have increased in recent years, and most blame the incentives on insurance benefits and the cost of repairing and rebuilding their homes, not bad weather.
Nearly two-thirds (65%) of homeowners who have seen their premiums rise say that insurance companies “wanting to make more money” are the main reason for the increase. Fewer respondents (46%) cited adverse weather events as a major cause.
The findings underscore growing public skepticism about the insurance industry at a time when housing coverage is increasingly expensive – and in some regions increasingly difficult, if not impossible, to obtain.
Gina Clausen Lozier, an insurance attorney and partner at Clausen Choquette, says the skepticism is based on what consumers actually experience when trying to spend their money.
“As consumers, homeowners expect that when they buy insurance for their homes, they will be fully protected in the event of a loss,” Lozier told Money. “Instead, many may face denied claims, high deductibles, or restrictive provisions, while paying higher premiums to insurers.”
That frustration, he adds, is tied to the structure of the industry itself. Because many insurers are publicly traded and operate under pressure to deliver returns, consumers often view premium increases through the lens of profit rather than risk.
“Combined with the rising cost of living, homeowners may feel bullied by insurers, especially since insurance is often not optional,” said Lozier.
Still, experts warn that the issue of pay increases is more complex than the public suggests.
Why do insurers say rates keep going up
Climate risk is playing an increasingly important role in reshaping the insurance market as catastrophic losses rise across the country. In 2025, for example, the Palisades and Eaton fires alone accounted for nearly one-third of global insured losses that year, totaling nearly $41 billion, according to Aon’s 2026 Climate and Catastrophe Insight report. Hurricanes, floods, wildfires and record-breaking heat waves all fuel similar increases in insured losses.
Industry data also challenges the idea that insurers are just making money. In several disaster-prone regions, carriers reported increased losses, reduced coverage or exited high-risk markets altogether. Insurers are also citing rising insurance costs after years of costly natural disasters have caused losses.
As a result, homeowners may see higher premiums even in areas that have not been hit by major disasters.
“Together, these factors contribute to a complex pricing environment where insurers must balance long-term financial stability with policyholder affordability, making premium increases the result of multiple interactions of economic forces rather than a single cause,” said Lozier.
As premiums continue to rise — with 42% of respondents to a Pew survey saying their insurance costs have risen significantly — and coverage availability tightens in some high-risk markets, insurers face a growing challenge beyond just pricing weather risk.
If the skepticism highlighted in Pew’s latest survey continues to stem from distrust, Lozier warns, the ripple effects could freeze the market itself.
“The future of the home insurance market is constantly changing,” he said. “If the private insurance market struggles to maintain consumer confidence and long-term health, there may be more reliance on government-backed insurance programs or ‘forced’ insurance policies imposed by lenders.”
Forced coverage is coverage that a mortgage lender can place when homeowners lose or fail to maintain a required policy. These policies tend to be more expensive and often offer less protection than traditional home insurance because they are designed to protect the lender – not the homeowner – in the event of a disaster.
Mandatory insurance policies or government-sponsored programs do not cover the common good. Both can come with limited protection and, in some cases, fewer choices for consumers — fueling concerns that a system designed to protect their homes is becoming harder to rely on.
