Deductibles are on the rise, but your home insurance provider might not have made that clear.

What's happening?

People want to be able to rely on their insurance provider in emergencies, especially as the risk of property damage from extreme weather events is rising. Yet the practice of increasing deductibles with limited transparency is also on the rise, as Live Insurance News reported.

According to LiveScience, the first half of 2025 was the most costly first six months on record for insurance companies' losses from natural disasters in the U.S., with cost estimates exceeding $93 billion. The previous six months with the most payouts cost a mere $57 billion, adjusted for inflation, in 2023, according to the source. 

In efforts to keep profits rolling in, insurance companies are upping their premiums. What makes it worse is that this is often done rather sneakily, with many customers not finding out until they try to make a claim.

Matic found a 24.5% increase in the average deductible from 2024 to 2025. Meanwhile, the American Association for Justice discovered that profits are only going up for property casualty insurance companies. In 2024, they made a staggering $169 billion in profits, up 333% since 2022.

Why are rising home insurance costs concerning?

Along with rising insurance costs, there have been examples of insurance companies completely refusing to renew policies due to extreme weather risks.

A recent study by NASA found that "extreme events such as floods and droughts are becoming more frequent, longer-lasting and more severe." As the planet faces more intense weather due to our changing climate, homeowners face unprecedented risks to their homes.

"It pays to read your policy!" is the phrase echoed in Live Insurance News, yet it also notes that insurers aren't making this information transparent and easily accessible, so that people going through an emergency aren't saddled with an unexpected financial burden.

What's being done about rising home insurance costs?

Insurers are facing greater pressure to be upfront about their changing policies and higher deductibles, with critics calling out industry practices. 

Some states offer homeowners protection beyond insurance. Florida, which is geographically at greater risk of sea-level rise, hurricanes, and extreme rainfall, has government protections in place. These include grants for infrastructure building and increased regulatory oversight on insurers, as well as offering free inspections to find out how homeowners can reduce the risk of wind damage.

If you're in the market for a new home insurance policy, make sure to be hyper-vigilant about analyzing the risk policies, and make sure you get the best coverage you can.

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