Climate Change, Home Buying & Homeowners Insurance

Kin is a direct-to-the-consumer, digital homeowners insurance company. The firm has produced its first annual Kin’s Homeownership Trends Report. The document says half of U.S. homeowners are considering a move. It also notes there will be more stability in the homeowners market in 2026 compared to 2025. 

On the negative side, the report found homeowners are worried about climate change issues and high insurance costs. Those are two major factors being considered when purchasing a home or changing homes. Kin calls it “weather anxiety.” 

Kin found 90% of homeowners are very concerned they will experience continued climate-related damages to their homes in the next two or three years. Another 68% are sure in 2026 extreme weather events are going to increase in the area where they live. 

Question: Are you considering relocating in 2026 due to climate-related concerns? 

• Yes, definitely considering it — 19%
• Yes, somewhat considering it — 30%
• No, not considering it — 45%
• I'm not sure — 6% 

Question: To what extent does the potential cost of home insurance weigh on your home purchase? 

• Very heavily — 16%
• Seriously — 33%
• Moderately — 31%
• Slightly — 6%
• Not at all — 4% 

The report says 25% who will be making a move based on climate issues will be leaving that state completely. Where won’t they go when they move? Three PIA Western Alliance states, California, Hawaii and Alaska are among the states where people will not go. 

Here’s that list: 

• Florida — 58% won’t move there
• California — 52% say no way will they move to the Golden State
• Hawaii — 24% won’t move to Hawaii
• Louisiana — 22% wont move relocate there
• Texas — 21% will avoid the Lone Star State
• Alaska — 21% will not be moving North 

A huge number of homeowners — 80% — are expecting higher maintenance and insurance costs this year. The survey found 82% think their homeowners insurance costs will rise and 72% see increases of somewhere between 1% and 10%. 

Sadly, 31% say they aren’t sure they can afford to stay adequately insured and 49% say insurance costs are a huge factor in their decision to purchase a home. By the way, 19% plan to change homeowners insurance providers this year. 

For most people — 74% — a home purchase is out of the question right now because mortgage rates are too high. Those polled say rates need to drop to 5% or less in order to purchase a home. 

Only 32% see a meaningful drop in interest rates in 2026. 

All that disturbing news aside, Kin CEO Sear Harper believes the market will much more stable in 2026. 

“We went through a period of economic instability, but it was driven by macroeconomic factors like inflation and interest rates that have since been absorbed,” Harper said. “Elevated inflation was one of the big drivers of premium increases last year, but inflation is now occurring at a more predictable pace. Substantial premium increases were the story in 2024, but they weren’t the story in 2025, except for some places like California. And, they won’t be the story in 2026.” 

Source link: Carrier Management — https://bit.ly/4qY21Nf 

Source link: Insurance Business America — https://bit.ly/49nOgl2