Those in coastal markets, particularly in Florida, have been the most affected by rising insurance rates
Aug. 27, 2024
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Baby Boomers are struggling with the rising price of home insurance.
While Baby Boomers may have had an easier time entering the housing market than current first-time homebuyers, the generation is still struggling with housing affordability. According to online insurance platform Insurify, home insurance—which has grown approximately 20% from 2021 to 2023—is a major strain on retirees. Home insurance takes up more than 8% of the average retirement income, which is $31,390. Coastal states, while popular for retirement, are hit hardest due to climate risk driving up insurance rates. In Florida, average home insurance costs are $11,163 annually, or about 34% of the state’s average retirement income. Louisiana follows with retirees spending 24% of their income on insurance.
Moving inland won’t necessarily help retirees stretch a fixed income. While Idaho and Michigan retirees previously paid 7%–8% of their retirement income toward home insurance — aligning with the national average — premiums have increased by 18% and 12%, respectively, in just the first half of 2024.
