A growing number of U.S. homeowners are adjusting their finances to keep up with rising homeowners insurance costs, according to new data from Insurify. The report, based on a survey of more than 1,000 homeowners, found that 57% have made financial sacrifices to afford their premiums. Among those facing affordability challenges, 45% reported cutting back on nonessential spending, while 37% reduced home maintenance and repairs. Additionally, 20% borrowed money, 16% avoided medical care, and 10% skipped meals to cover insurance costs. The findings come at a time when both homeownership and the ongoing cost of maintaining a home are becoming more difficult for many Americans.

Premium Growth Outpaces Inflation

Rising premiums are a key factor behind these financial adjustments. According to Matt Brannon, senior economic analyst at Insurify, the typical home insurance premium has increased nearly three times as fast as inflation over the past four years. Premiums rose 46% during that period, compared to a 16% increase in inflation. Two primary drivers are contributing to higher costs: increased rebuilding expenses and growing exposure to extreme weather events. Brannon noted that construction costs surged during the COVID-19 pandemic due to supply chain disruptions. As a result, replacement costs have increased significantly. A home that cost a certain amount to rebuild in 2019 may now require up to 40% more to insure at full replacement value. At the same time, insurers are responding to heightened catastrophe risk. The U.S. experienced 23 billion-dollar weather disasters in 2025, the third-highest total on record, following 2023 and 2024. As risk increases, insurers often adjust pricing to account for higher potential losses.

Insurance Costs Often Overlooked in Homebuying

Despite rising premiums, many buyers are not factoring insurance into their home purchase decisions early enough. Insurify’s data found that nearly half of surveyed homeowners did not consider insurance costs when buying their home. Brad Spurgeon, owner and CEO of Brad Spurgeon Insurance Agency in Texas City, Texas, said insurance is frequently overlooked during the buying process. “Insurance often is the last thing on homebuyers' minds and can catch them off guard at closing,” Spurgeon said. “Most of the focus is on the mortgage payment, taxes, and HOA fees, not insurance.” Industry professionals note that evaluating insurance costs earlier in the process can help avoid unexpected increases in total housing expenses. In some regions, particularly those exposed to natural disasters, insurance pricing can significantly affect monthly payments. Brannon pointed to Florida as an example, where insurance and flood coverage can materially impact affordability. Buyers considering properties in higher-risk areas, such as those prone to hurricanes, may face elevated premiums. Understanding these costs before submitting an offer can help reduce the likelihood of last-minute adjustments, such as increasing deductibles or reducing coverage levels.

Strategies to Manage Rising Costs

While premiums continue to rise, several approaches may help homeowners manage costs. One recommendation is to regularly compare insurance quotes. Brannon advised homeowners to review rates from at least three insurers every six months. However, he emphasized the importance of comparing equivalent coverage limits and deductibles to ensure accurate evaluations. Discounts also remain a potential avenue for savings. Insurers may offer reductions for policyholders who bundle coverage, install security systems, pay premiums in full, or meet certain eligibility criteria such as military service or age. Some discounts may not be widely advertised, making it important to inquire directly with insurers or agents. Property-level risk mitigation can also influence premiums. Upgrades such as fortified roofs or hurricane shutters may reduce the likelihood of damage, thereby lowering insurers' perceived risk. Some states offer financial assistance programs for these improvements, and in certain cases, insurers are required to provide discounts for qualifying upgrades. As premiums continue to increase, these strategies may play a larger role in helping homeowners maintain coverage without making significant financial trade-offs. Stay informed and ahead of the curve — explore more industry insights and program opportunities at ProgramBusiness.com.

Farmers Insurance has launched a new recruitment initiative aimed at entrepreneurs with significant capital as the company works to appoint nearly 1,700 agency owners in 2026.

The effort centers on the newly introduced Elite Owner Program, which targets applicants with at least $500,000 in capital. The program is designed for individuals who can establish agencies at scale from the outset and is part of a broader strategy to expand the company’s distribution network.

Elite Owner Program Structure

The Elite Owner Program offers tiered participation levels, including Gold, Platinum, and Diamond. Each tier provides varying levels of operational support, such as dedicated service channels, startup assistance, and marketing resources.

According to Farmers, the structure combines owner capital with company support to facilitate accelerated policy sales and premium growth compared with other agency appointment pathways.

The program operates alongside existing recruitment channels, including the Retail and Acquisition programs, which allow candidates to start new agencies or purchase existing ones. Additional pathways, such as the Financial Services Agent and Business Insurance Agent programs, also remain in place.

Recruitment Goals and Distribution Strategy

Farmers stated that the recruitment initiative supports its broader goals of organic growth, modernization of its distribution model, and expansion of market share. The company also noted that increasing its agency footprint is intended to strengthen its presence in local communities.

Ken Walton, president of distribution at Farmers, said the company is increasing its focus on entrepreneurial agency ownership.

"We're doubling down on the entrepreneur model to drive our next chapter of growth," Walton said. "By onboarding 1,700 new agency owners, including an Elite tier of well-capitalized business leaders seeking to build or expand their portfolio, we'll be injecting fresh energy into our distribution force."

Walton added that agency owners retain the flexibility to operate independently while receiving support from Farmers. This includes the ability to sell select non-Farmers branded products.

Recruitment Activity Trends

Through February 2026, new agent appointments increased 34% compared with the same period a year earlier. The company also reported that its recruiting pipeline nearly doubled year over year.

Farmers indicated that these figures reflect continued recruitment activity throughout the year.

Existing Structural Framework

The current recruitment push builds on prior structural changes. In 2024, Farmers implemented its district manager model across all US regions. The model includes a mentorship framework designed to support new agency owners as they establish and grow their businesses.

The planned addition of nearly 1,700 agency owners would represent one of the largest single-year increases in the company’s 95-year history.

Application Process

Prospective agency owners can apply through Farmers’ recruitment platform. Applicants may be contacted by a district manager or a member of the Elite Owner Program recruiting team as part of the evaluation process.

Related Underwriting and Capital Developments

Separately, Farmers has made recent adjustments to its underwriting and capital strategy.

In November 2025, the company announced it would remove a cap of 9,500 new homeowners policies per month in California. It also began marketing to approximately 300,000 consumers in areas identified by the California Department of Insurance. Additionally, Farmers filed for a 6.99% average statewide rate increase and proposed increasing its Home and Auto discount to 22% from 15%.

In another development, Farmers completed a $400 million catastrophe bond through Topanga Re Ltd. The transaction included $300 million in Class A notes and $100 million in Class B notes. Both note classes provide four years of per-occurrence and indemnity-based protection against U.S.-named storms, earthquakes, severe weather, and fire. The coverage is part of the company’s reinsurance program.

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