Homeowners in 15 States Pay More for Insurance than Property Taxes [LendingTree Report]

For decades, property taxes have been one of the biggest ongoing costs of homeownership. But in many parts of the country, that's no longer the case.

A new LendingTree analysis found that homeowners in 15 states now spend more on homeowners insurance than property taxes, showing how rapidly rising insurance premiums are changing the cost of homeownership.

Key findings:

• Homeowners in 15 states pay more for insurance than property taxes. Nationwide, homeowners spend an estimated $200 a month on insurance and $311 on property taxes. But state-level differences often tell a very different story.
• Tennessee, Alabama, Colorado and South Carolina have the highest insurance-to-property tax ratios, meaning homeowners in those states spend nearly twice as much on insurance as they do on property taxes.
• Virginia and Montana have effectively reached a tipping point, where homeowners spend about the same on insurance as they do on property taxes.
• Home insurance accounts for at least 10% of monthly housing costs in 20 states, reaching nearly 20% in Nebraska, the highest share in the nation.

You can view the full report here: https://www.lendingtree.com/insurance/home-insurance-housing-costs-study/

Expert insight:

"Insurance used to be an afterthought in the homebuying process for most shoppers. In many areas today, the rising cost of home insurance is having an outsized influence over people's buying power. In many states, the cost of insurance has become just as significant as property taxes, if not more so." 

Rob Bhatt, LendingTree's insurance analyst and licensed insurance agent, is available to discuss:

• Why insurance is overtaking property taxes in some states
• What's driving premium growth
• How weather risk and state insurance markets affect homeowners' costs
• What buyers should factor into their housing budget before purchasing a home

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