Rising Insurance Costs Make Resiliency a Key Builder Selling Point
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As coverage tightens and premiums climb, resiliency has become one of the few ways to bring costs down. Builders who can guarantee those savings stand out.
Younger generations are having difficulty accessing home insurance. COGNITION Smart Data shows that while only 16% of Boomers and 22% of Gen Xers report that climate events have impacted their ability to get insurance for their homes, but that number increases sharply to 66% and 77% for Millennials and Gen Z respectively.
This dramatic generational divide stems from several factors: older generations are often grandfathered into long-standing policies while younger generations are entering the market as new applicants (typically with lower credit ratings), premiums have soared nationwide, and many younger buyers are relocating to more affordable secondary and tertiary markets—areas that frequently carry higher climate risks. For example, Boise, Idaho, a major Millennial hotspot during the pandemic, sits squarely within the Wildland–Urban Interface (WUI) with high wildfire danger.
Even for households that can secure coverage, rising premiums present a growing financial burden. According to COGNITION Smart Data, 26% of consumers have seen their homeowners insurance increase by 30% over the past three years, and another 35% report at least a 10% increase over the same period. These escalating costs are pushing homeowners to consider resilient upgrades as a way to reduce long-term expenses and improve total cost of ownership.
Builders are increasingly recognizing this shift in buyer priorities. COGNITION Smart Data shows that 55% of builders say resilience is an important selling point for buyers, and another 23% consider it extremely important.
While many insurance providers offer incentives for resilient upgrades—such as reduced premiums, rebates, or specialized policies for homes with reinforced roofs, storm shutters, or backup systems—these benefits are not always guaranteed. Only 20% of COGNITION Smart Data survey respondents say they actually receive a discount in their region.
That uncertainty creates a key opportunity for builders: being able to verify and communicate available insurance benefits can be a major market differentiator. In fact, 42% of individuals hesitant to invest in resiliency upgrades say that confirmed insurance discounts would motivate them to make these improvements.
Like this COGNITION Hot Take? We have more! Unlock the data driving the industry’s sustainability transformation to build smarter and sell faster. Subscribe to COGNITION Smart Data.
Victoria Muharsky is an ESG specialist at Green Builder Media, where she leads the ESG for Building Working Group. Under her guidance, the group has successfully overseen the release of the groundbreaking ESG Defining Principles. Crafted collaboratively by industry experts, these guidelines are revolutionizing the homebuilding sector's approach to ESG and sustainability.
Rising Insurance Costs Make Resiliency a Key Builder Selling Point
As coverage tightens and premiums climb, resiliency has become one of the few ways to bring costs down. Builders who can guarantee those savings stand out.
This dramatic generational divide stems from several factors: older generations are often grandfathered into long-standing policies while younger generations are entering the market as new applicants (typically with lower credit ratings), premiums have soared nationwide, and many younger buyers are relocating to more affordable secondary and tertiary markets—areas that frequently carry higher climate risks. For example, Boise, Idaho, a major Millennial hotspot during the pandemic, sits squarely within the Wildland–Urban Interface (WUI) with high wildfire danger.
Even for households that can secure coverage, rising premiums present a growing financial burden. According to COGNITION Smart Data, 26% of consumers have seen their homeowners insurance increase by 30% over the past three years, and another 35% report at least a 10% increase over the same period. These escalating costs are pushing homeowners to consider resilient upgrades as a way to reduce long-term expenses and improve total cost of ownership.
Builders are increasingly recognizing this shift in buyer priorities. COGNITION Smart Data shows that 55% of builders say resilience is an important selling point for buyers, and another 23% consider it extremely important.
While many insurance providers offer incentives for resilient upgrades—such as reduced premiums, rebates, or specialized policies for homes with reinforced roofs, storm shutters, or backup systems—these benefits are not always guaranteed. Only 20% of COGNITION Smart Data survey respondents say they actually receive a discount in their region.
That uncertainty creates a key opportunity for builders: being able to verify and communicate available insurance benefits can be a major market differentiator. In fact, 42% of individuals hesitant to invest in resiliency upgrades say that confirmed insurance discounts would motivate them to make these improvements.
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Like this COGNITION Hot Take? We have more! Unlock the data driving the industry’s sustainability transformation to build smarter and sell faster. Subscribe to COGNITION Smart Data.
By Victoria Muharsky
Victoria Muharsky is an ESG specialist at Green Builder Media, where she leads the ESG for Building Working Group. Under her guidance, the group has successfully overseen the release of the groundbreaking ESG Defining Principles. Crafted collaboratively by industry experts, these guidelines are revolutionizing the homebuilding sector's approach to ESG and sustainability.Also Read