Insurance Premiums Up Big Across the Country—What’s Driving the Insurance Crisis?
Summary
Landlord insurance premiums are rising significantly nationwide, with Florida, Texas, and California experiencing the steepest increases due to climate change, inflation, and increased claims. Hosts should review their insurance policies, shop around for competitive rates, and consider risk mitigation strategies to protect their cash flow.
Key Insights
- •Landlord insurance premiums jumped nearly 8% in the first quarter of 2025.
- •Midwest and Southeast markets outside Florida have seen more moderate increases in the 10% to 15% range.
- •Florida leads the pack, with some landlords reporting premium increases of 30% to 50% year over year.
- •Texas landlords are facing 20% to 35% increases.
- •Counties in and around wildfire zones in California are seeing 25% to 40% increases.
- •Rising premiums are a result of climate change and extreme weather events, inflation in construction and repair costs, increased claims frequency, the reinsurance market tightening, and litigation costs rising.
Action Items
- ✓Shop your policy regularly and get at least three quotes from different insurers before renewal.Effort: lowImpact: medium
- ✓Invest in risk mitigation by installing impact-resistant roofing, upgrading electrical panels, or adding monitored security systems.Effort: mediumImpact: medium
- ✓Document all upgrades, maintenance, and property improvements with photos, receipts, and inspection reports.Effort: lowImpact: medium
- ✓Consider higher deductibles strategically if you have strong cash reserves.Effort: lowImpact: medium
Tools & Resources
- →Steadily: You can work with a company like Steadily that will shop for the best coverage for you.
Common Mistakes
- ⚠Working with a general homeowner’s insurance policy for your rental portfolio, you’ll likely pay more for coverage that doesn’t actually fit your needs.
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