Home insurance is becoming a bigger consideration for homeowners as premiums rise and insurers adjust where and how they write new policies.
In September, State Farm and Allstate filed plans to resume writing new residential policies in California after previously restricting new business in the state. The filings show how quickly insurance availability can change in markets where insurers face higher property risks and losses.
The cost of coverage is also becoming a larger part of the monthly cost of owning a home. According to ICE’s September 2026 Mortgage Monitor, insurance accounted for 9.6 percent of the average monthly mortgage payment.
For longtime homeowners, these changes can make the cost of staying in a property harder to predict. A homeowner who has owned the same house for years may have a manageable mortgage payment but still face higher insurance premiums, changing coverage terms, and rising costs to maintain the property.
That can affect decisions about how long to remain in the home. Zillow’s 2025 Consumer Housing Trends Report found that 28% of sellers said increased insurance premiums or a canceled policy helped drive their decision to move and sell.
For real estate agents, understanding these pressures can help explain why some longtime homeowners are reconsidering their next move.
A fixed mortgage does not mean fixed housing costs
A fixed-rate loan keeps principal and interest payments steady. Insurance has no such protection. When premiums rise, owners who pay through escrow can face a larger monthly bill without any change to their mortgage rate.
ICE’s September 2026 Mortgage Monitor, reporting on the second quarter, put average property insurance costs for single-family mortgage borrowers at $209 a month, nearly 80 percent above early 2020 levels.
Growth had slowed, but costs remained at a record high. ICE also reported some of the fastest increases in markets affected by hurricanes, wildfires and hail.
Mortgage-free owners still pay insurance, taxes and repair bills. For longtime owners budgeting around retirement income, those recurring expenses can make staying less affordable.
A paid-off house may carry substantial equity, yet that equity does not pay the next renewal bill without a sale or borrowing.
When higher premiums change a longtime owner’s plans
Insurance can be the main reason an owner decides to sell. It can also be the last expense a stretched budget can absorb.
Someone already paying for repairs and higher taxes may have planned to move eventually. A larger renewal bill can make waiting another year harder, particularly if retirement income leaves little money after regular expenses.
A 2025 Maxwell survey found that 57 percent of respondents might consider or would strongly consider selling and moving within five years if current conditions continued, according to a summary published by the Mortgage Bankers Association.
The survey covered homeowners generally, rather than longtime owners specifically, and measured possible future decisions, not completed sales.
Insurance may have started the conversation, but repairs, taxes and retirement plans can help explain the timing.
Ask what changed with the latest renewal and what staying another year would mean for the owner’s budget.
Moving only helps if the next home costs less to keep
A smaller home does not automatically mean smaller bills. For longtime owners considering a sale because of higher insurance premiums, the next property needs to reduce the total cost of owning it.
For owners whose decision is driven by insurance costs, that search also needs a clear budget. Less space alone does not guarantee savings.
Help your client compare insurance quotes, coverage and deductibles for the replacement home. Add property taxes, likely repairs, HOA fees and any new mortgage payment.
Then calculate selling expenses, purchase closing costs and moving charges. Compare that upfront total with the expected monthly savings to see how long recovering those costs would take.
Leaving a longtime home is a major decision. The numbers should support the savings your client expects.
What agents should ask before discussing a listing
Before discussing a listing date, ask what changed and what the owner wants to do next.
- Did the premium increase, or did the insurer decline to renew the policy?
- Would the owner prefer to stay if suitable coverage became affordable?
- Is there a renewal deadline affecting the timing?
- Does the owner plan to buy again, rent or move closer to family?
These answers help you separate an immediate insurance problem from a firm decision to move. Give owners room to compare their choices without treating financial pressure as a reason to rush.
In the end, a longtime owner may still want to stay, even after asking about selling. Rising insurance costs can put that plan beyond the budget. Agents can help by comparing the cost of staying with the cost of moving and giving clients room to choose a realistic next step.
Jaromy Tagg is the founder and CEO of Liberty Fair Offer, a real estate company working with homeowners across Washington and Idaho.
