Why home insurance premiums are climbing

Summary

Marketplace Morning Report

Episode Summary: Why Home Insurance Premiums Are Climbing

Date: September 18, 2025
Host: David Brancaccio
Primary Segment Reporter: Carla Javier

---

Episode Overview

This episode of Marketplace Morning Report focuses on the increasing cost of home insurance for American homeowners. With nearly half of homeowners noticing premium hikes, the episode explores the reasons behind these increases—highlighting rising construction costs, labor rates, and, especially, the growing impact of climate change. The segment provides insights from researchers, industry experts, and affected homeowners, along with practical advice on how to potentially mitigate increasing premiums.

---

Key Discussion Points and Insights

1. Surge in Home Insurance Premiums

• J.D. Power Data:
  • Historically, about one-third of homeowners reported premium increases.
  • After 2021, that figure jumped to 41%, and most recently hit 47%.
  • (03:04) Craig Martin (J.D. Power): "It jumped after 2021 to 41%, and it's been trending up since then to now our highest level at 47%."
• Consequences:
  • Homeowners are increasingly shopping around for better rates.
  • Insurance companies are facing consumer demand for explanations.

2. Why Are Premiums Rising?

• Construction & Labor:
  • Cost of construction materials and labor rates are going up, affecting claim payouts and policy costs.
• Climate Change as "The Big Culprit":
  • More frequent and severe storms are driving up claims and, consequently, premiums.
  • (03:29) Jeremy Porter (First Street):
    "Historically, what the insurance company has done is they've relied on past events to help to be indicative of what they should be charging or what risk is in an area."
  • Reliance on historical patterns is less reliable due to escalating extreme weather events.

3. Real-Life Impact: Premium Hikes Across States

• Individual Examples:
  • Jeremy Porter:
    • On Long Island, his own premiums have risen 20–30%.
    • His mother's premiums in northern Kentucky have tripled over the last five or six years due to increased wind and hail storms.
    • (03:51) "Her premiums are like triple what they were just five or six years ago, mainly due to increases in wind storms and hailstorms in the area."

4. Navigating Rising Insurance Costs: What Homeowners Can Do

• Home Improvement Incentives:
  • Some states offer incentives for climate-resilient upgrades (e.g., hurricane-resistant roofs in Alabama).
  • Such investments can lower insurance costs.
  • (04:03) "The state of Alabama, for instance, has a really, really good incentive program for adding hurricane resistant roofs to your home, which...can reduce insurance costs."

---

Notable Quotes & Memorable Moments

• Craig Martin (J.D. Power Lead Researcher) [03:04]:
  “It jumped after 2021 to 41%, and it's been trending up since then to now our highest level at 47%.”
• Jeremy Porter (First Street Climate Risk Researcher) [03:29]:
  "Historically, what the insurance company has done is they've relied on past events to help to be indicative of what they should be charging or what risk is in an area."
• Jeremy Porter (on family impact) [03:51]:
  “Her premiums are like triple what they were just five or six years ago, mainly due to increases in wind storms and hailstorms in the area.”
• Jeremy Porter (on homeowner options) [04:03]:
  "The state of Alabama, for instance, has a really, really good incentive program for adding hurricane resistant roofs to your home, which he says can reduce insurance costs."

---

Timestamps for Core Content

• 01:30 – David Brancaccio introduces the episode's main economic story
• 02:42 – J.D. Power report on increased home insurance premiums
• 02:56 – Carla Javier segment: Why insurance prices are rising
• 03:04 – Craig Martin on premium trends
• 03:13 – Explanation for rising costs, introduction to climate risks
• 03:39 – Jeremy Porter discusses personal and family impact
• 04:03 – Incentive programs and advice for homeowners

---

Additional Context

• The episode also briefly covered significant business stories, including Nvidia's acquisition of a stake in Intel and changes in the U.S.-China trade landscape. However, the central focus relevant to homeowners was the comprehensive look at rising insurance premiums.
• Host David Brancaccio and the Marketplace team maintain an accessible, conversational tone throughout.

---

Conclusion

This Marketplace Morning Report episode delivers a concise, listener-friendly overview of the surging costs in home insurance, grounding the explanation in data and real experiences. The climate crisis is underscored as the central driver, but listeners also gain practical insights into how state-level programs and home improvements can provide some relief—an episode especially relevant for homeowners keen to understand and address the changes in their insurance bills.

Transcript

[GoFundMe Announcer]

Want to make a difference in your community, but not sure how? Go to GoFundMe.com right now and start a GoFundMe. Seriously. Your next fundraiser doesn't have to start in a school parking lot or a church basement. You can start a GoFundMe today in just minutes. Fundraise for yourself, a friend or family member or an organization. All that matters is that you care about them. GoFundMe is the trusted place to fundraise for what you care about. With no pressure to hit your fundraising goal, but tons of tools to help you reach it, you can confidently start fundraising right now. Whether it's creative, local or critical, your cause matters. And there's a reason why GoFundMe is backed by millions and chosen by fundraisers everywhere. It works and it matters. GoFundMe helps you make a real difference. Start your GoFundMe today at gofundme.com that's gofundme.com G O F U N D me dot com this is a commercial message brought to you by GoFundMe.

[Base44 Announcer]

Think about the app you've been wanting to build, sell something you've created, run your community, manage your business, or launch your next idea. Now imagine it's live. Before Today's over, meet base 44, the fastest way to turn any idea into a fully functional app. No code, no waiting. Just describe what you want and watch it come together. Backend, design, and all in minutes. Okay, Real product ready to share. From idea to live app Fast. Start building [e-mail].

[David Brancaccio]

You'Re not alone. Home insurance is getting a lot more expensive. I'm David Brancaccio in Los Angeles. First, there's news this morning that the star of artificial intelligence chip making, Nvidia, is throwing its weight behind a beleaguered rival. Nvidia is buying a $5 billion stake in, in fact, Intel Corporation. Intel stock and is up 25% in early trading. Right now, the two companies say they're going to develop new computer chips together. As Marketplace's Nancy Marshall Genzer reports in.

[Nancy Marshall Genzer]

A statement, the two companies say they'll jointly develop computer chips for data centers and personal computers, and the new chips will be able to communicate faster, speeding up the computers that use them. Intel has been struggling. The Trump administration bought a roughly 10% stake in the company in August. Kevin Hassett, director of the White House's National Economic Council president, was on CNBC this morning. He was asked if the Trump administration had engineered this new deal between intel and Nvidia.

[Marketplace Reporter]

I am not aware of anyone from the government negotiating with Nvidia on Intel.

[Nancy Marshall Genzer]

The Intel Nvidia deal still has to be approved by federal regulators. I'm Nancy Marshall Genser for Marketplace.

[David Brancaccio]

This week, the research firm J.D. power released a report showing almost half of homeowners saw home insurance premiums go up in the last year. Marketplace's Carla Javier explains why prices are going up and how to navigate that.

[Maggie Smith]

For years, about a third of homeowners reported increases to their annual premiums, according to the J.D. power Report's lead researcher Craig Martin.

[Marketplace Reporter]

It jumped after 2021 to 41%, and it's been trending up since then to now our highest level at 47%.

[Maggie Smith]

So he says consumers are starting to shop around and insurers are trying to explain why coverage is more expensive. Cost of construction materials is rising. So is labor. But the big culprit? Climate change. Jeremy Porter researches climate risk at First Street.

[Marketplace Reporter]

Historically, what the insurance company has done is they've relied on past events to help to be indicative of what they should be charging or what risk is in an area.

[Maggie Smith]

But with more frequent and severe storms, there'll be more damage to cover. Porter owns his home on Long Island. His premiums have increased by 20 to 30%. His mom lives in northern Kentucky and.

[Marketplace Reporter]

Her premiums are like triple what they were just five or six years ago, mainly due to increases in wind storms and hailstorms in the area.

[Maggie Smith]

He says homeowners have some options.

[Marketplace Reporter]

The state of Alabama, for instance, has a really, really good incentive program for adding hurricane resistant roofs to your to.

[Maggie Smith]

Your home, which he says can reduce insurance costs. I'm Carla Javier from Marketplace Foreign.

[Base44 Announcer Variant]

Picture the app you've been dreaming about. Now imagine it's real and ready to launch before today's over. Meet BAS44, the fastest way to bring your ideas to life without writing a single line of code. Just describe what you want to create and watch it take shape instantly. The design comes together, the features are built and the backend is ready to go. No technical setup, no juggling tools, no waiting on anyone. A real product, fully working, ready to share, test or sell. From idea to Live App Fast Start building [e-mail] our state has changed a.

[Base44 Announcer]

Lot in the last 140 years. We know because Multicare has been here guided by a single purpose, making our communities healthier. That comes from making courageous decisions, partnering with local communities to grow programs and services, and expanding healthcare access to those who need it most. Together, we're building a healthier future. Learn [e-mail].

[David Brancaccio]

President Trump is planning a call with Chinese leader Xi Jinping tomorrow. The call has not yet been confirmed by the China side. This after the two countries agreed to a framework to keep the popular China based social media app TikTok running in the US Despite US Law. Here's Marketplace's China correspondent Jennifer Pack.

[Jennifer Pack]

China's People's daily newspaper called the TikTok framework deal a win win. But on the same day, China's market regulator accused US Chip maker Nvidia of violating Chinese anti monopoly law. Is China escalating things or gathering a bargaining chip? A call between Trump could help unsettled investors and businesses read the situation better. The two leaders could discuss anything from American semiconductors, soybeans to Chinese rare earth magnets. But addressing core issues of fairness and market access are much harder still. Any measure that doesn't escalate U. S China tensions will be seen as a victory in Shanghai. I'm Jennifer paak for Marketplace.

[David Brancaccio]

FedEx sends out its quarterly results later today and analysts expect profits will take a hit in part from the administration ending the exemption for shipments worth under $800. The de minimis loophole that's now been closed. It's not just FedEx that ships smaller packages internationally by plane. Marketplaces Henry Epp has that the pandemic.

[Henry Epp]

Was really good to the air freight industry. Consumers stuck at home were doing more online shopping, which fueled the rise of e commerce companies in China like Shein and Temu. Their whole thing was using that de minimis loophole to ship small amounts of cheap goods from China to the US to by plane.

[Marketplace Reporter]

You didn't have to ship a container load or a pallet or what have you.

[Henry Epp]

Joseph Smith is with the investment bank Cassel Sal Peter instead of putting that pallet on a container ship, which takes weeks, these companies would put a bunch of small packages on a FedEx or UPS plane from China and within a.

[Marketplace Reporter]

Couple of days make it from the distributor or the factory to the consumer.

[Henry Epp]

The air cargo industry loved this, says Derek Lossing, who runs the consulting firm Cirrus Global Advisors.

[Marketplace Reporter]

They were filling at times, you know, dozens of 747 charters per day with.

[Henry Epp]

E commerce coming out of China. But the party didn't last. In May, the Trump administration ended the de minimis exemption on packages from China and Hong Kong, making them subject to import taxes. And then it did the same thing for parcels from the rest of the world last month, while also of course putting new tariffs on most imports.

[Marketplace Reporter]

Tariffs are really bad for air freight demand and the de minimis especially has been borderline catastrophic.

[Henry Epp]

Ryan Peterson is the CEO of the logistics company Flexport. Air freight companies have tried to pivot by flying goods to other parts of the globe.

[Marketplace Reporter]

Capacity has grown quite significantly on China to Europe trade lanes, but he says.

[Henry Epp]

That'S not enough to make up for the lost business.

[Marketplace Reporter]

It's taking a hit on earnings. People in the air freight industry are making a lot less money this year.

[Henry Epp]

Ultimately, big cargo companies will probably be fine because the boom in international e commerce sent by plane is a pretty new phenomenon, says Samuel Engel, an aviation consultant at icf. It's not the core of their business. It's not historically been the core of their business. And truthfully, they're facing bigger issues in the global restructuring of the directions of trade. It's smaller logistics firms that are really taking the punch, says Brandon Fried, head of the Air Forwarders Association.

[Marketplace Reporter]

A few forwarders actually set up facilities to quickly handle these shipments. It was like the express lane for small imports.

[Henry Epp]

Now, he says, those facilities are just sunk cost. Unless the Trump administration's policy changes again. I'm Henry AP for Marketplace, and in.

[David Brancaccio]

Los Angeles, I'm David Brancaccio. This is the Marketplace Morning Report from apm American Public Media.

[Maggie Smith]

Poetry has the power to connect our inner universe and the outer world. I'm Maggie Smith, poet and host of the Slowdown, a podcast from American Public Media. Each weekday, find time to take a breather from your to do list or doom scrolling for that matter, and take in a moment of reflection with a hand picked poem. Listen to the Slowdown wherever you get podcasts.