28% of Homeowners Are Considering Relocating Because of Home Insurance Costs

Home Insurance Costs and Policy Cancellations Are Relocation Triggers

A recent study by The Zebra on natural disasters and home insurance found that 28% of all homeowners report that significant increases in home insurance premiums would prompt them to consider relocating. Additionally, 28% of homeowners say that being unable to secure home insurance because of weather risks would force them to look for a house elsewhere.

Combined with the 33% of respondents who state that increasing natural disaster risk itself would drive them to leave, insurance-related pressures now rival actual physical climate risk as a motivator for housing mobility.

High Concern for Natural Disasters Is a Bigger Indictor of Relocation Consideration Than Prior Damage

The pressure to move to safety increases for homeowners who feel most vulnerable.

As part of the survey, we asked respondents how concerned they were about a disaster impacting their household in the next five years. High-concern households, or those who reported feeling "extremely concerned" or "very concerned," are more likely to consider relocation due to natural disasters and increased home insurance costs. This is understandable given that concern for their homes due to natural disaster destruction is high.

• 40% of high-concern homeowners state that steep premium increases could cause them to move, compared to just 20% of low-concern homeowners.
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• 36% of high-concern homeowners say losing access to coverage would make them consider relocating.

Even among homeowners who have never experienced property damage, insurance markets are creating friction. A full 25% of homeowners without prior damage experience acknowledge that major rate increases could push them out of their homes, while 27% say policy unavailability would do the same.

This demonstrates that market instability alone—even in the absence of a direct loss—is generating financial anxiety strong enough to disturb homeownership stability.

Gen Z Is the Most Likely to Consider Relocation Due to Natural Disaster and Home Insurance Triggers

While older generations often hold substantial equity to cushion insurance hikes, younger homeowners face a steeper incline. The overall rate of homeownership for Gen Z is around 27%, and Gen Z accounts for about 4% of all homebuyers.^[1]

• 48% of Gen Z homeowners expect rising homeowners insurance premiums to trigger a move, compared to the 28% national average.
• Concurrently, 53% of Gen Z homeowners cite rising disaster risk as a relocation driver.

Entry-level buyers are increasingly unwilling—or financially unable—to absorb the expanding costs of risk-prone real estate.

In this chart, you can see the data from the same question about relocation triggers, but broken down by generation. Boomers are the most likely to say none of the triggers are leading them to consider relocation. By contrast, only 13% of Gen Z said the same. 

Some of this generational sentiment can be tied to life stages. More of Gen Z are in the early career stage and are often moving for career, education, or partner reasons. In fact, nearly 1 in 4 Gen Z adults moved to a different state in 2024.^[2] Thus, the idea of a move for home insurance or natural disaster reasons may be less daunting. 

Natural Disasters Are Influencing Homebuyers, Particularly Gen Z and Millennials

In addition to considering relocation, we also asked homebuyers how much natural disaster concern factored into the purchase of their current home. Yet again, the answers varied by generation.

• 52% of Gen Z  and Millennial homeowners agreed that natural disasters influenced their homebuying decision, compared to 37% for the general population.
• Over half of Gen Z and Millennial homeowners researched flood zones prior to purchasing a home, compared to only 34% of the general population. 

Younger homebuyers are proactively making purchase decisions based on the current risk factors and are also open to relocating if those risk factors increase. 

Navigating the Risk: What Homeowners Can Do

When an insurance non-renewal or price shock hits, homeowners often feel they have no options. However, taking proactive steps before putting up a "For Sale" sign can help stabilize costs:

1. Natural Disaster Mitigation: Insurers increasingly reward structural resilience. Upgrading roof integrity, clearing defensible space around wildfire zones, or installing flood defenses can unlock discounts or keep a policy active.
2. Explore FAIR Plans and State Pools: If standard carriers non-renew your policy, look into state Fair Access to Insurance Requirements (FAIR) plans or last-resort coverage options to bridge gaps.
3. Shop the Surplus Lines Market: Non-admitted carriers specialize in high-risk properties, offering customized coverage when traditional insurers retreat from a ZIP code.
4. Evaluate Risk Before Buying: Buyers should request home insurance quotes and investigate local climate risk scores during the contingency period rather than waiting until closing.