Andrea Riquier, USA TODAYFri, May 30, 2025, 7:38 PM 3 min readAs homeowners insurance becomes more expensive, many Americans are choosing to go without it – even as risks that are prevented, or at least mitigated, by insurance coverage increase.The Federal Reserve’s Economic Well-Being of U.S. Households of 2024, released in May 2025, is the latest analysis to document the trend. Across the country, 7% of all homeowners in the survey of more than 12,000 respondents had no insurance, the report found, although there were some discrepancies based on geography.When asked why they didn’t have homeowners insurance, 43% said they “couldn’t afford it”, while another 19% said “it is not worth the cost.” And respondents with fewer financial resources were among the most likely to go without insurance. Roughly 3 in 10 homeowners with income less than $25,000 or those whose only asset was their home went without.The Fed’s findings track almost exactly with a report published in early 2024 by the nonprofit watchdog group Consumer Federation of America. Approximately 7.4% of American homeowners are uninsured, that report found, representing 6.1 million homes.ASHEVILLE, NORTH CAROLINA - SEPTEMBER 28: A fallen tree on a home in the aftermath of Hurricane Helene on September 28, 2024 in Asheville, North Carolina. (Photo by Sean Rayford/Getty Images)"Homeowners earning under $50,000 per year are twice as likely to lack insurance compared to homeowners in general,” CFA’s authors wrote, adding that 22% of Native American homeowners, 14% of Hispanic homeowners, and 11% of Black homeowners have no insurance.The findings are concerning, the report adds, because it means those owners “are at risk of losing their homes in the face of ever-escalating climate disasters and storms.”See also: Climate risk will take trillion-dollar bite out of America's real estate, report findsMore recent research suggests the threat may be even more stark. An analysis from data analytics provider First Street, released in May 2025, found a direct correlation between lack of insurance and foreclosures. But First Street’s findings also demonstrate it’s not just the uninsured homes that suffer, but the broader communities as a whole.When storms hit and homeowners fall into delinquency, there’s less tax revenue for municipal services like transportation and less demand boosting the local economy. Homes may be abandoned or not kept up, and the value of even undamaged homes may increase more slowly or decline outright.Still, there are good reasons why millions of homeowners say insurance is too expensive for them. 2025 data from CFA shows that in 2024, a typical homeowner – with a midrange credit score and a house with a $350,000 replacement value – faced an average premium of $3,303 per year – $275 per month.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5005,911.69 -0.48 (-0.01%)Dow 3042,270.07 +54.37 (+0.13%)Nasdaq19,113.77 -62.13 (-0.32%)Russell 20002,066.29 -8.49 (-0.41%)VIX18.57 -0.61 (-3.18%)Gold3,313.10 -30.80 (-0.92%)PortfolioSign in to access your portfolioSign inTop gainersRGC Regencell Bioscience Holdings Limited 877.00 +136.02 (+18.36%)PONY Pony AI Inc. 19.26 +2.11 (+12.30%)ULTA Ulta Beauty, Inc. 471.46 +49.67 (+11.78%)MP MP Materials Corp. 21.79 +2.02 (+10.22%)ZS Zscaler, Inc. 275.70 +24.59 (+9.79%)Top losersSMMT Summit Therapeutics Inc. 18.22 -7.99 (-30.50%)GAP The Gap, Inc. 22.31 -5.64 (-20.18%)REGN Regeneron Pharmaceuticals, Inc. 490.28 -115.11 (-19.01%)AMBA Ambarella, Inc. 52.64 -9.36 (-15.10%)COO The Cooper Companies, Inc. 68.28 -11.68 (-14.61%)Most activeNVDA NVIDIA Corporation 135.13 -4.06 (-2.92%)LCID Lucid Group, Inc. 2.2300 -0.1800 (-7.47%)PLTR Palantir Technologies Inc. 131.78 +9.46 (+7.73%)F Ford Motor Company 10.38 +0.16 (+1.57%)TSLA Tesla, Inc. 346.46 -11.97 (-3.34%)Earnings eventsTrending tickersBTC-USD Bitcoin USD 104,459.82 +490.80 (+0.47%)XRP-USD XRP USD 2.17 +0.04 (+1.85%)ETH-USD Ethereum USD 2,525.94 +5.91 (+0.23%)MMM 3M Company 148.35 -1.28 (-0.86%)BTC-CAD Bitcoin CAD 143,533.02 +674.39 (+0.47%)Top economic eventsPowered by Money.com - Yahoo may earn commission from the links above.