Why Home Insurance Is Becoming a Dealbreaker for Buyers in Boise

By Sarah Breck — Boise real estate agent helping buyers, sellers, and relocators make confident moves with strategy, savvy, and a human touch.

Home insurance costs are rising—and not just a little. We’re talking about a surge that’s pricing people out of homeownership altogether. If you’re buying or selling in the Treasure Valley, this trend is something you can’t afford to ignore.

Let’s dive into what’s going on, what the experts are saying, and how buyers and sellers can stay one step ahead in this fast-changing market.

Home Insurance Premiums Are Skyrocketing

According to a Realtor Magazine article by Melissa Tracey, home insurance premiums are rising faster than property values in many areas across the U.S. Data from Policygenius shows the average premium went up 21% year over year—that’s a $244 increase annually. And in some areas, rates have jumped as much as 50%.

This has real consequences. Would-be buyers are being priced out. Some homeowners are being forced to sell. And in extreme cases, people are paying off their mortgage early just to drop the mandatory insurance coverage—going “naked,” as the industry puts it.

Why Insurance Costs Are Climbing So Fast

There’s no one reason—it’s a cocktail of climate change, inflation, rising construction costs, and insurance providers pulling out of high-risk areas altogether.

Thom Amdur of Lincoln Avenue Communities calls it exactly what it is: an affordable housing issue. Without affordable coverage, developers slow down, buyers get squeezed, and the market becomes less accessible to everyone.

Add to that the lack of competition in the insurance marketplace, and we’ve got a perfect storm of higher premiums with fewer options.

Climate Risks Are Redefining Real Estate Decisions

Peter Carroll of CoreLogic says that thanks to climate modeling technology, we can now predict future risk for wildfires, hurricanes, floods, and more—sometimes 15 to 30 years out. This kind of forecasting is changing how real estate gets evaluated.

In other words: today’s “safe” neighborhood may not look so safe in a few decades. And if you're buying in Boise or anywhere with shifting weather patterns, that should definitely factor into your home search.

Companies like Lincoln Avenue Communities are now building climate risk scorecards before they break ground. These mitigation steps can not only reduce risk but also help negotiate lower premiums with insurers.

Do Buyers Care? Yes… But They’re Still Buying in High-Risk Areas

Nicole Bachaud, a senior economist at Zillow, says buyers are aware of the risks, but affordability often wins out. They’re still buying in high-risk areas because the price tags are lower—even if that means higher insurance premiums down the line.

The problem? Many buyers can’t afford to retrofit or improve their home to protect against climate risks. And that increases vulnerability for everyone—owners, communities, and insurers.

Preparing the Housing Stock for Climate Change

The solution? Stronger building codes, smarter design, and policy changes.

Panelists at the National Housing Conference offered suggestions like mandatory flood insurance, government-backed insurance reserves, tax credits, and public funding for climate-resilient infrastructure.

CoreLogic’s data backs this up—homes built under stronger codes have lower delinquency rates after disasters. The goal is to build smarter, not necessarily avoid high-risk areas altogether.

For example:

• Elevating mechanical systems

• Installing fire-safe landscaping

• Designing flood barriers and storm drainageAll of these can be built into new or retrofitted homes if buyers, developers, and communities work together.

Where We’re Headed: The Rise of “Climate Havens”

As more people flee high-risk zones, we may start seeing the rise of “climate havens”—areas with fewer natural disasters and more stable weather.

These could become future hot spots for new housing developments. But to get there, we need a mindset shift in both consumer behavior and policy. That means factoring in climate data during site selection, prioritizing sustainability, and making retrofits financially accessible—especially for low- to moderate-income households.

Final Thoughts: Home Insurance as a Housing Dealbreaker

It’s official—home insurance is no longer just a checkbox on your mortgage documents. It’s a major piece of the affordability puzzle. If you’re buying in Boise, Meridian, Nampa—or anywhere with changing climate patterns—now is the time to factor insurance risk into your decision-making. Ask the hard questions. Get quotes early. And make sure you’re working with professionals who understand how to future-proof your investment.

Need help strategizing your move? Let’s chat. I help buyers and sellers make smart, long-term decisions in Boise’s evolving real estate market.

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About Sarah – With over 16 years of entrepreneurial experience, Sarah blends grace, grit, and expert guidance to create a real estate experience that’s as strategic as it is personal. Passionate about empowering her clients—especially first-time buyers and women—she’s dedicated to turning complex market moves into confident, seamless transitions in Boise and the Treasure Valley.