Written by David Dodge  

Homeowners and real estate folks! If you’ve been keeping an eye on the housing market, you’ve probably noticed that insurance costs are climbing faster than a squirrel up a tree. This issue took the spotlight at the recent REALTORS® Legislative Meetings in Washington, D.C., where experts gathered for a “Risk to Resilience” roundtable to tackle this growing concern. According to James Cristbrook, an agent with @properties Christie’s International Real Estate in Birmingham, Mich., who moderated the discussion, rising insurance costs are messing with real estate deals—sometimes at the eleventh hour—shaking both closings and client confidence.

What’s Driving the Spike?

The panelists didn’t sugarcoat it: insurance challenges are popping up everywhere. In the Midwest and Northeast, roof-related claims are through the roof (pun intended). Meanwhile, condo insurance is becoming a major headache in the West and South. Cristbrook noted, “Rates are rising, and coverage is becoming harder to find in high-risk areas.” So, what’s behind this? A mix of inflation, extreme weather, and even legal system abuse is putting pressure on insurers, according to Mike Richmond-Crum, senior director at the American Property Casualty Insurance Association.

State and Federal Solutions

The first panel, featuring Scott A. White, Virginia insurance commissioner and VP of the National Association of Insurance Commissioners, Mike Richmond-Crum, and Roy E. Wright, CEO of the Insurance Institute for Business & Home Safety, dug into what governments can do. White stressed the need for risk-based pricing and better consumer education, pointing out that insurance isn’t meant for routine home maintenance. Richmond-Crum warned that capping rates might sound nice but could make it tougher to get coverage in risky areas. Instead, he suggested federal grants and tax incentives to reduce disaster risk, which could lower both home and flood insurance rates.

Wright was all about mitigation—think stronger homes, fewer claims, and ultimately lower premiums. He highlighted successful programs in Alabama and Florida, like the My Safe Florida Homes program, which offers discounts for disaster-proofing homes. According to Wright, these programs work best when governments, insurers, and communities team up.

Industry-Led Fixes

The second panel, led by Ted Oatts, chair of the NAR Insurance Committee, focused on what the real estate industry can do. “Mitigation is the key,” Oatts said, emphasizing that helping homeowners reduce risk can cut costs and improve insurance availability. Sanjay Wagle from the California Association of REALTORS® shared that some insurers in California are refusing to write new policies due to wildfire risks and skyrocketing rebuilding costs. He backed California Insurance Commissioner Ricardo Lara’s strategy, which lets insurers use forward-looking catastrophe models in exchange for offering coverage in high-risk areas.

In Florida, one of the priciest states for home insurance, Trey Goldman from Florida REALTORS® highlighted the My Safe Florida Homes program, which educates homeowners on hurricane-proofing their homes to save on insurance. Meanwhile, Austin Perez, NAR’s senior policy advisor, argued that the federal government has a big role to play. “Expanding federal grants and tax incentives would help consumers reduce their costs and make insurance more available,” he said, noting that it lowers the cost of insuring homes.

What Can You Do?

Even if you’re not an insurance guru, there’s plenty you can do to help navigate these choppy waters. The roundtable emphasized being a “resource of the source”—connecting clients with trusted experts who can guide them through the insurance maze. Whether it’s pointing them toward mitigation programs like those in Florida or Alabama or helping them understand their coverage, you can make a difference.

Rising insurance costs are a real pain, but with education, mitigation, and some smart policy moves, there’s hope for more affordable and accessible coverage. Stay informed, lean on experts, and let’s work together to keep homeownership within reach!

This blog is based on insights from the NAR “Risk to Resilience” roundtable, originally reported by Ross Hettervig.