February 1, 2026

Home Insurance In The USA Skyrocketed In 2024

Insurance costs for condo and town home associations across the U.S. are surging at unprecedented rates, dramatically increasing the cost of ownership and complicating resale. The article highlights a California community whose annual insurance premium jumped more than fourfold to over $170,000, even as coverage for wildfire damage was sharply limited. Many insurers are exiting high-risk markets—particularly in wildfire- and hurricane-prone states like California and Florida—leaving associations with fewer options, higher premiums, larger deductibles, and in some cases inadequate coverage relative to replacement costs.

These rising insurance expenses are a major driver behind sharply higher condo association fees. Condo dues rose roughly 20% between 2022 and 2024, according to industry data, adding pressure at a time when housing affordability is already near its worst level since the 1980s. Most associations report premium increases at renewal, forcing boards to raise dues, levy special assessments, drain reserves, or even borrow. In extreme cases, owners who cannot keep up with higher fees risk foreclosure by their own associations, while retirees and fixed-income residents increasingly choose to sell and rent instead.

The insurance shock is also distorting condo markets by making some units harder—or impossible—to finance. Rising deductibles and reduced coverage can put associations out of compliance with mortgage standards set by Fannie Mae and Freddie Mac, shrinking the buyer pool to cash or non-conventional borrowers and depressing resale values. Aging buildings, deferred maintenance, and stricter safety regulations further compound insurer reluctance. With limited tools to control costs and some bylaws capping annual fee increases, many associations are cutting maintenance or bracing for ongoing instability—raising concerns that insurance costs could structurally undermine the affordability and liquidity of condo ownership going forward.

SOURCE : WSJ - https://www.wsj.com/personal-finance/big-jump-in-insurance-costs-strikes-condos-617c102a?mod=article_inline

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