In a surprising shift in the economics of homeownership, the cost of home insurance plus the weather-related portion of auto insurance now exceeds property taxes across three-quarters of U.S. counties.
A recent Bloomberg Intelligence analysis found that homeowners insurance premiums alone exceed property-tax bills in roughly two-thirds of counties. When the share of automobile premiums attributable to extreme weather is included, that figure climbs to 75%.
Over the past decade, county-average homeowners insurance premiums have increased 45% after adjusting for inflation, according to the analysis. Nebraska recorded a staggering 79% increase.
Across counties, homeowners now pay an average of 14% more for property insurance than property taxes. Moreover, homeowners face a 30% higher insurance burden than property-tax bill when weather-related auto insurance costs are included.
The financial burden falls hardest on the Southeast, where relatively low property taxes and exposure to hurricanes mean insurance premiums can run 2.5 to four times the typical tax bill. In the Northeast, the West and large metro areas, higher property taxes make rising premiums a smaller share of the overall bill.
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