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.