The increasing frequency and severity of natural disasters, coupled with escalating home repair costs and other pressures, are pushing homeowners’ insurance out of reach for many Americans, according to a new report from the Insurance Research Council (IRC).
The IRC evaluated affordability using the ratio of average homeowners’ insurance expenditures to median household income. In 2020, this ratio stood at 1.93%, meaning that, on average, US households spent nearly 2% of their income on homeowners’ insurance.
