More Americans struggle to pay rising insurance premiums, Dallas Fed finds

Stunning stat: The average U.S. home insurance premium increased 57% — or $794 — from 2019 to 2024, per the Dallas Fed. By comparison, Texas homeowners insurance premiums increased 73%, or $1,400.

State of play: Home insurance premiums comprised 14% of U.S. homeowners' monthly payments last year, including mortgage principal and interest. In 2013, that figure was 10%.

• The rates are projected to increase roughly 25% by 2055, per First Street, which specializes in financial modeling for climate risk.

What they're doing: Homeowners may rely more on credit cards, delay their mortgage payments, or move homes because of their higher home insurance premiums, the Dallas Fed says.

• The Fed estimated that premium increases pushed roughly 31,000 mortgages into delinquency in 2022.
• Another 203,000 mortgages could become delinquent per year from 2025 to 2055 because of continuing premium increases.

Between the lines: Not everyone can afford to move to areas with fewer home insurance claims and, in turn, lower premiums.

• "The increase may quietly reshape who can afford to leave, who is forced to stay, and who ultimately owns homes in communities with high climate risk," the Dallas Fed's report says.