Experts say climate change is impacting home insurance: Do homeowners see it?

The majority of homeowners either don't think climate change is behind increased homeowners insurance rates, or aren't sure if there's a connection, according to the 2026 Insurance and Climate Change survey conducted by Insurance.com. The survey found that 43% believe climate change is impacting the home insurance market, while 32% say it isn't, and the remaining 25% aren't sure. Of those who have seen an increase in rates, fewer than half (41%) attribute it to climate risk.

Experts, however, see a strong link between climate change and homeowners insurance. A 2024 Congressional Budget Office (CBO) report found that climate change is straining insurers' resources, resulting in rate increases. Similarly, a 2025 U.S. Department of the Treasury Federal Insurance Office (FIO) report found that homeowners in areas subject to severe weather events are paying more for homeowners insurance as insurers respond to climate change-related costs.

Furthermore, most people aren't increasing their coverage to keep up with rebuilding costs. The survey found 69% of homeowners have made no change to their coverage. Rex Frazier, president of the Personal Insurance Federation of California, points to rising costs as a common reason people don't buy more coverage.

"People are still making the individual economically rational decision for how much insurance they can afford," he said. "People are more likely to buy the amount they need that is required for their mortgage. But are they really going to buy more? There's every reason to think, no, they're not going to survey that local market, see these big contractor costs."

The increased costs go beyond premiums; insurers are passing more costs to homeowners through weather-specific deductibles, commonly for hail and windstorms, as noted by consumer advocacy agency United Policyholders.

Quick Coverage:

* 43% of surveyed homeowners think climate change is impacting the home insurance market in their area.

* 32% of those who shopped for home insurance recently felt that weather or natural disaster risk has made it harder to find coverage.

* 9% of homeowners have increased their coverage levels, while 11% have added additional coverage, either flood or windstorm.

* 41% of those who saw a rate increase in the past year believe it's climate change-related.

Do homeowners believe climate change is affecting the home insurance market?

While some people do see the connection, the majority either don't or aren't sure. Only 43% of homeowners believe climate change is impacting home insurance in their area. Thirty-two percent say they don't think climate change affects rates, and 25% are unsure.

More than half of homeowners either don't see a connection between climate change and their insurance rates or aren't sure whether one exists. This uncertainty may reflect how difficult it is for policyholders to see the factors insurers use to set premiums.

Climate and weather risk can affect homeowners insurance pricing in several ways. Insurers use catastrophe models to estimate the likelihood and potential cost of future disasters, while claims history shows how much insurers have paid for past losses. Reinsurance—the coverage insurers buy to help pay for large-scale losses—is another factor. Changes in any of these costs can affect homeowners insurance premiums, even when the reason for a rate increase isn't obvious to the policyholder.

Is it harder to get home insurance because of natural disaster risk?

While 49% of respondents say weather-related risks haven't made it harder to get home insurance, 23% say it's become harder to get appropriate coverage.

Removing the 28% of homeowners surveyed who haven't shopped for homeowners insurance recently, the adjusted view shows that among the 72% who did shop, about 32% had trouble finding coverage, and 68% did not.

Insurers may become more restrictive in high-risk weather areas by not renewing some policies, pausing new business, tightening underwriting requirements, or increasing deductibles.

For example, the survey found that among homeowners who recently shopped for coverage, 61% in Florida and 57% in California said it has become harder to obtain coverage, more than double the rest of the country (24%). In the Insurance.com 2026 Insurance Sentiment Survey, 19% of Florida homeowners and 15% of California homeowners had their policies canceled or nonrenewed, compared with 8% elsewhere. The most common reasons were the insurer leaving the area and the home being in a high-risk area.

If your insurer does not renew your homeowners insurance policy, shop around for coverage with other insurers. If you can't find coverage in the private market, check with your state insurance department about any state-backed insurance programs that may be available as a last resort.

Are home insurance rates rising, and is climate the cause?

Home insurance rates are rising across the country, with Insurance.com data showing a national average of $2,872 a year. But while experts say that more frequent and severe weather events are impacting rates, homeowners don't always see it as a cause. According to the Insurance and Climate Change survey, 63% of homeowners saw their home insurance rates increase in the past year. However, homeowners don't agree on whether climate and weather were behind those increases.

California homeowners are more likely to consider climate change when looking at insurance increases, with 55% believing rate increases are tied to the weather.

* 33% of California homeowners did not see a rate increase in the last year.

* 32% saw a rate increase, but don't attribute it to climate.

* 36% saw a rate increase and believe climate and weather contributed to the rates.

In the 2026 Insurance Sentiment Survey, homeowners reported that most rate increases were modest. Among homeowners whose rates increased, 56% said the increase was less than 10%, while 10% reported an increase of 25% or more.

Homeowners may attribute rate increases to non-climate factors, such as inflation, higher construction and repair costs, litigation, reinsurance costs, and claims frequency. Perception of the causes varies, even when the increase is the same.

Are homeowners adding coverage for natural disasters?

Despite huge losses in recent years from storms, wildfires, and other natural disasters, most homeowners surveyed (69%) have not changed their coverage. Of those surveyed, 10% said cost was the reason they didn't increase coverage. Among those who made changes, 9% increased their coverage levels, 7% added flood insurance, and 4% added windstorm insurance.

The results suggest a gap between growing weather-related risks and homeowners' responses. Even when homeowners worry about severe weather, the cost of additional coverage may keep them from changing their policies.

Homeowners in areas with high weather-related risks may find gaps in their insurance policies that may need to be addressed. Standard homeowners policies exclude flood damage, and some regions allow separate wind or hail deductibles. Homeowners in these areas need to add coverage and plan for higher deductible costs.

For example, in the 2026 Insurance Sentiment Survey, 7% of homeowners surveyed said they have added flood insurance as disaster risk increases. Cost remains a barrier for some; 4% of homeowners said they canceled a flood policy in the past year because they couldn't afford it.

Is disaster risk driving homeowners to a FAIR plan or insurer of last resort?

Yes, in some areas. California's FAIR Plan has seen policies triple since 2020. The survey found that 11% of surveyed homeowners said that increased disaster risk in their area forced them to use a state-backed insurer.

A FAIR plan, or insurer of last resort, is a state-backed or state-mandated pool that offers basic coverage when private insurers decline. FAIR Plans generally provide more limited coverage than standard homeowners policies and may cost more. Availability, coverage, and eligibility requirements vary by state.

In Florida, the state insurer of last resort, Citizens Property Insurance, has seen policy count drop dramatically, down 76% since 2023. Legislative changes and a quiet hurricane season in 2025 have helped.

Frazier said the affordability of home insurance is a bigger issue than whether coverage is available.

"Availability is not the issue. It's affordability. And affordability is driven by a bunch of different factors, including these reconstruction costs that have gone up just dramatically in the last several years," he said.

Affordability is a major factor in Florida, where Insurance.com data show an average annual rate of $8,471.

Increased costs for homeowners: Weather-specific deductibles

Premiums aren't the only way insurance companies are passing on rising costs to homeowners. In many areas, weather-specific deductibles are a method of reducing risk. There are 19 states where windstorm deductibles are in use; these often apply to named storms such as hurricanes and tropical storms, but can also apply to tornadoes. Furthermore, as hail damage increases across the nation, many carriers also add hail deductibles.

These deductibles apply to damage caused by the named source and are often a percentage of the policy's coverage. So, a policy with $300,000 in dwelling coverage and a 5% hail deductible puts a $15,000 cost on the homeowner in the event of hail damage.

The survey found that 7% of respondents have had a hail deductible added to their policy. More concerning, 21% of respondents weren't sure if a peril-specific deductible had been added, leading to a potentially expensive surprise when filing a claim.

What should homeowners do about the impact of climate risk on insurance?

Homeowners can't control climate risk, but they can reduce their financial exposure by reviewing their homeowners insurance coverage and understanding local risks. To reduce costs, compare homeowners insurance quotes annually and ask about discounts.

Action steps include:

* Review policy exclusions for flood, wind, and wildfire.

* Compare homeowners insurance quotes annually.

* Ask about mitigation discounts, such as roof upgrades or storm shutters.

* Check the deductible structure for wind and hail.

* Understand what FAIR plans offer before a non-renewal happens.

Survey methodology

Insurance.com surveyed 1,252 insured homeowners in the fall of 2026 about how they perceive climate change's impact on homeowners insurance rates and availability. Market research company Dynata conducted the survey.

This story was produced by Insurance.com and reviewed and distributed by Stacker.

Distributed by Newsbank, inc.