The Rising Cost of Homeownership: Why Homeowners Insurance Should Be at the Top of Your Budget

When most people think about buying a home—whether in Camas, WA, Vancouver, WA, Portland, OR, or Beaverton, OR—the first numbers they look at are purchase price, interest rates, and property taxes. But there’s one cost that too many buyers push to the back of their minds: homeowners insurance.

I’m Jamie Meushaw with Jamie Meushaw Real Estate. I work with buyers and sellers throughout Southwest Washington and the Portland metro area, and today I want to talk about why homeowners insurance costs have skyrocketed in recent years—and how that affects not only affordability here locally but also across the entire country.

Homeowners Insurance: The Hidden Factor in Affordability

Traditionally, buyers focus on two affordability factors:

1. Purchase price – the cost of the home itself.

2. Interest rate – which determines how high your monthly mortgage will be.

Property taxes often get added into the monthly payment, but homeowners insurance tends to be an afterthought. That’s a mistake in today’s market.

Over the past six years, homeowners insurance premiums have risen dramatically nationwide. For example:

• Progressive saw an 87.8% increase in rates.

• State Farm, one of the largest insurers, kept their increase lower at 24.1%, partly because they’ve pulled out of high-risk states like California and Florida.

These numbers matter because every dollar increase in your insurance premium directly affects your monthly mortgage payment. And if your payment pushes past your budget, the dream home you thought you could afford in Camas, Vancouver, Beaverton, or Portland may suddenly be out of reach.

Why Are Rates Rising Nationwide?

This is not just a Pacific Northwest real estate issue. The rise in premiums is a nationwide trend tied to several factors:

• Natural disasters: Insurance companies are pulling out of high-risk states like California and Florida. That creates fewer options for homeowners and drives up premiums where coverage is still available.

• Inflation: After COVID, construction costs skyrocketed. Replacing a roof, repairing fire damage, or rebuilding after a storm now costs significantly more in labor and materials.

• Reduced competition: When fewer companies write policies in a given state, buyers face higher premiums—or sometimes no coverage at all.

The Ripple Effect on Buyers, Sellers, and Homeowners

Rising homeowners insurance costs affect everyone in the real estate market:

• Buyers: If insurance is too expensive, they may have to lower their budget, switch neighborhoods, or walk away from certain homes altogether.

• Current homeowners: Monthly escrow accounts are climbing, putting stress on budgets and sometimes forcing families to shop for lower coverage.

• Sellers: With affordability stretched thin by high interest rates, rising home prices, and now higher insurance premiums, buyers may need concessions or lower prices to close deals.

Here in Camas, Vancouver, Portland, and Beaverton, we’re seeing the same trends that are impacting homeowners nationwide. It’s no longer just about the asking price or mortgage rate—insurance can make or break affordability.

Tips for Homebuyers in Today’s Market

If you’re buying a home in the Portland metro or Southwest Washington area (or anywhere nationwide), consider these steps:

1. Get an insurance quote before writing an offer – Don’t wait until you’re under contract to find out if coverage is affordable.

2. Work with an experienced Realtor – Someone who understands both real estate and insurance trends in local markets like Camas or Beaverton.

3. Consider lower-risk areas – Homes in areas with fewer wildfire, flood, or storm risks may come with lower premiums.

4. Add an insurance contingency – Protect yourself by making sure you can walk away if coverage costs come back higher than expected.

Tips for Current Homeowners

If your premiums are rising, here are a few strategies to keep costs manageable:

• Shop around for better rates.

• Bundle home and auto insurance for discounts.

• Increase deductibles to lower monthly payments.

• Add safety features such as security systems or fire sprinklers.

• Review your policy annually with your insurance agent.

Final Thoughts

Rising homeowners insurance costs in Camas, Vancouver, Portland, and Beaverton reflect a much larger nationwide affordability challenge. Buyers need to factor insurance into their upfront calculations, homeowners need to budget for annual increases, and sellers need to recognize that affordability pressures are real.

If you’re considering buying or selling a home in the Portland metro or Southwest Washington, I’d love to guide you through these challenges. Together, we’ll make sure you’re prepared for not just the mortgage and taxes—but the hidden costs that can make or break a deal in today’s real estate market.

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