Rising Insurance Premiums Impact Senior Homeowners – NMP Skip to main content

Rising Insurance Premiums Impact Senior Homeowners

Associate Editor
Jul 22, 2021

Simply by monitoring, reviewing, and adjusting their insurance policy, these homeowners saved $751 annually.

KEY TAKEAWAYS
  • Increasing home insurance premiums disproportionately impacted homeowners with FICO scores below 580.
  • Home insurance premiums are on the rise nationally and grew an average of 4% year-over-year.
  • Homeowners with a FICO score below 580 experienced rising insurance premiums reaching 6.4%.
  • Premiums for seniors fail to drop because many fail to regularly check policies and annual premium increases.

Insurtech platform, Matic, released its mid-year premium trends report revealing that increasing home insurance premiums disproportionately impacted homeowners with FICO scores below 580. 

According to the 2021 mid-year report, home insurance premiums are on the rise nationally and grew an average of 4% year-over-year. However, homeowners with a FICO score below 580 experienced the largest increase in rising insurance premiums reaching 6.4%. This impacted homeowners by an extra $85 per year on average for a 12-month policy.

Ben Madick, co-founder and CEO of Matic Insurance, said, “In most states, an insurance score, which is partially driven by a credit rating, represents the probability of a claim being filed, and affects the premium a homeowner will pay for coverage.”

Rising Coverage A correlates to the overall increase in home insurance premiums. On average, Coverage A increased 6.3% year-over-year. Yet, homeowners with FICO scores below 580 saw a sharper increase of 9%.

“The housing market, the cost of materials, and the cost of labor were on the rise even before COVID-19,” Madick continued. “We're now seeing those increases reflected in the estimated replacement cost of the home (Coverage A), which ultimately drive increases in insurance premiums, among other factors. While homeowners with lower FICO scores experienced a disproportionate increase, they are receiving better coverage and the gap between premiums and Coverage A is closing.”

Although senior homeowners do not have the highest average premiums, they are the most likely to overpay and have a significant opportunity to save. The report found that homeowners over the age of 63 are the most susceptible to overpaying for home insurance. 

Matic’s data shows that average premiums tend to be the highest for those between 43 and 55 years old. But premiums for seniors fail to drop proportionately because many fail to regularly check policies and annual premium increases, adding up over time. Simply by monitoring, reviewing, and adjusting their insurance policy, these homeowners saved $751 annually. 

The study shows that 40% of homeowners have not reviewed their policy in the last two years. That is why Matic created RateReview. "We created RateReview, an insurance monitoring service, to help homeowners avoid overpayment and ensure they have the right policy,” Madick said. 

For more information visit the Matic website.

 

About the author
Associate Editor
Katie Jensen is a mortgage news reporter at NMP.
Published
Jul 22, 2021
New-Home Sales Tumble, Giving Buyers More Leverage With Builders

Sales fell 10.5% in July as inventory climbed, leaving builders increasingly dependent on price cuts, mortgage-rate buydowns, and other incentives

Aug 26, 2026
Stable Credit Scores Mask Growing Mortgage Affordability Divide

Average payments for first-time buyers have climbed 57% since 2019, while serious delinquency is becoming concentrated among lower-scoring borrowers

Aug 25, 2026
loanDepot Faces NYSE Warning Despite Turnaround Gains

The lender’s shares have traded below the exchange’s $1 threshold, putting a potential reverse stock split on the table

Aug 24, 2026
New-Home Mortgage Demand Slips Despite Widespread Builder Incentives

Applications fell 5.7% annually in July, while government-backed mortgages accounted for half of builder-affiliated loan volume

Aug 21, 2026
Fannie Mae Returns To Distressed-Loan Market With $214 Million Sale

The agency’s first nonperforming-loan offering in 13 months transfers 969 deeply delinquent mortgages to private buyers, including a small pool concentrated in Dallas-Fort Worth

Aug 20, 2026
Summer Rate Spike Knocks Pending Home Sales To Six-Month Low

Contract signings fell in every region during July, leaving purchase activity 30% below its 2019 level despite a larger workforce

Aug 19, 2026