For years, home insurance was a background detail in most real estate transactions. It was important, but rarely a dealbreaker. That is starting to change. In today’s housing market, rising insurance costs and stricter underwriting are becoming a more visible part of the homebuying process, influencing affordability, financing, and even where buyers are willing to live. As The Wall Street Journal has reported, insurers across the country are limiting new policies or pulling back in higher risk areas, particularly in regions vulnerable to natural disasters. That pullback can reduce buyer options and introduce unexpected complications late in a transaction.
Even when home prices are not rising as quickly as they once did, insurance premiums continue to climb. An analysis from the Consumer Federation of America found that homeowners insurance premiums increased significantly nationwide between 2021 and 2024, adding meaningful costs for many households. For buyers who value budgeting carefully and planning for long term stability, insurance is becoming a more important part of total monthly affordability, alongside mortgage payments, property taxes, and maintenance expenses.
Insurance availability can also affect whether a transaction closes smoothly. Reuters has reported that disruptions to flood insurance programs and other coverage issues can delay home sales in certain regions because lenders require proof of coverage before funding a loan. This has led many buyers to secure insurance quotes earlier in the process, sometimes even before submitting an offer, in order to avoid last minute surprises.
For sellers, insurance trends are beginning to influence how homes are positioned and evaluated. Realtor.com has noted that rising insurance costs and climate related risks are affecting buyer behavior and, in some cases, home values. Properties with older roofs, outdated systems, or prior claims histories may face more scrutiny, while homes that demonstrate maintenance and risk mitigation can provide added reassurance. Working with a knowledgeable real estate professional who understands how insurance factors into today’s transactions can help both buyers and sellers navigate these concerns more confidently. Many families within the LDS community choose to connect through LDSAgents.com to find agents who appreciate the importance of long term financial planning and thoughtful decision making.
Home insurance may not dominate headlines the way mortgage rates do, but it is playing a larger role in real estate decisions than it has in years. Buyers who factor insurance into their planning early and sellers who understand how it affects perceived value will be better positioned in a market that increasingly rewards preparation, transparency, and long term stability.
