How Homeowners Insurance Costs Are Hurting Buyers and Sellers

Most people don’t realize it until it’s too late, but homeowners insurance is becoming one of the biggest deal breakers in today’s real estate market. Whether buying or selling, this factor can cause significant setbacks, unexpected costs, and even complete contract fallout. It’s no longer just a box to check. Insurance rates are rising fast, impacting both sides of the transaction in serious ways.

For buyers, it’s shrinking budgets and killing options. If you’re buying a home, insurance costs can change what you can actually afford. Premiums have jumped 20 to 30 percent in many areas, adding hundreds to your monthly payment. That extra cost cuts into your mortgage budget, forcing you to shop at a lower price point or walk away from homes you love. Even if the home price fits your budget, the insurance quote might push it out of reach. Some buyers get all the way to the final stages of a deal before the insurance quote returns higher than expected. That’s when things fall apart. It’s frustrating and often avoidable if you know what to look for early.

For sellers, it’s leading to lower offers and longer timelines. Sellers are feeling the pressure, too. Buyers are coming in with lower offers, using insurance costs as a bargaining chip. They’re pushing for more repairs, especially if the roof is older or if anything on the inspection might raise a red flag for insurers. In some cases, buyers back out entirely when the insurance premium comes in too high. Sellers are also seeing fewer showings because cautious buyers are pausing their search.

What you can do now to stay ahead. If you’re selling, talk to your agent about potential red flags before listing. Some repairs may be worth handling upfront. If you’re buying, ask questions early and get quotes as soon as possible. Insurance needs to be part of the conversation from day one.

This is something you can plan for—but only if you know it’s coming. I’ll help you get ahead of it, ask the right questions, and avoid last-minute surprises. Call or text me at 205-531-2747 or email Brian@BrianKelleherTeam.com and let’s talk about how to keep insurance from derailing your next move.