How to Escape Rising US Home Insurance Costs

For most people, their home is their biggest asset, so ensuring it is properly protected is non-negotiable. 

But here’s the problem: home insurance costs in the US are skyrocketing.

While a once-off price increase of a few per cent every once in a while is manageable, prices in the US have seen increases of nearly 20% between 2021 and 2023 – in 2024, homeowners there saw an average rate increase of 17.4% for new policies. 

In fact, the average homeowner who bought their policy in 2021 paid around 69% more for insurance at their 2024 renewal. 

Quite simply, things have gotten out of hand, and that’s without taking 2025’s California wildfires into account.

The devastating wildfires there have destroyed thousands of homes. 

At the time of writing, the estimated damage and economic losses from these fires are between US$135 billion and US$150 billion. 

Events like these don’t just affect those who lose their homes – they can through the entire insurance market or, in the event of a calamity like the 2025 LA wildfires, sweep across it like a tsunami.

Insurance companies have to cover their rising payouts and will hike the cost of everyone’s premiums. In wildfire-prone states like California, annual home insurance premiums have doubled, or even tripled, for some homeowners. 

If you think that sounds steep, consider that some insurers had already refused to renew many clients’ policies in the last few years, while other brokerages are expected to go bankrupt as a result of the scale of the LA fires. 

Add in the insurance companies that are now likely to pull out of these high-risk states altogether, and suddenly, millions of homeowners will be left scrambling for coverage.

This is where having a second citizenship can offer you a lifeline. 

Diversifying your real estate holdings in a second country can give you a backup plan and protect your wealth. Owning property in countries with stable climates, lower insurance costs and fewer natural disasters could save you thousands in the long run. 

Plus, whenever – and that’s when, not if – the US housing market takes another hit from extreme weather or soaring insurance costs, you’ll have an escape plan.

At Nomad Capitalist, we’ve helped people invest in second homes in places where property insurance is often a fraction of US costs. This isn’t just about saving money – it’s about protecting your financial future.

How Much is Homeowner Insurance in the US?

Owning a home in the US is seen as a cornerstone of the American dream, but that dream comes with a hefty price tag beyond making your mortgage repayments.

According to Bankrate, in 2024, the average US homeowner shelled out around$2,181 per year for a policy with a US$300,000 real estate limit. This is around US$182 per month.

But this figure is just a national average, meaning your actual costs could be a lot higher depending on factors such as:

●       Where you live: states like California, Nebraska, Florida and Oklahoma are experiencing sky-high premiums due to the increased risk of natural disasters.

●       The age and condition of your home

●       The materials that were used to build your home

●       Your credit score: on average, homeowners with poor credit pay 92% more for home insurance.

●       The crime rates in your neighbourhood.

If you own real estate in California right now, it’s safe to say your premiums will rise significantly above the national average.

Why Is US Homeowners Insurance Increasing So Much?

Home insurance premiums in the US are climbing rapidly and it’s not a short-term trend. 

Climate change is driving more frequent and severe natural disasters, from hurricanes to wildfires and insurers are passing those rising risks onto homeowners. 

In the first half of 2024 alone, natural disasters caused over US$60 billion in insured losses – a massive 54% higher than the 10-year average. Hurricane Helene’s rampage through Florida and beyond resulted in damage of US$47.5 billion.

In January 2025, the catastrophic Pacific Palisades wildfires show just how serious the problem is.

In fact, in just one week, January 2025’s LA fires destroyed more than 120,000 structures, including more than 5,300 homes, wiping out entire neighbourhoods. 

Such losses could seriously overwhelm California’s insurance market, where some companies are already refusing to renew policies. 

Homeowners are being forced onto state-backed plans like California’s FAIR plan, which can leave them underinsured and paying higher premiums.

The costs don’t stop there: inflation has made rebuilding more expensive, and rising reinsurance costs are being passed along to policyholders nationwide as aggressive legal claims contribute further to higher rates.

It’s an open secret that the US is a notoriously litigious society, which has a direct impact on insurance costs. A further increase in lawsuits and claims, often fueled by aggressive legal tactics, forces insurers to raise premiums to cover their costs.

In short, it’s a – ahem – perfect storm for the insurance market and we’re already seeing many homes and entire areas becoming uninsurable at any price.

That’s why protecting your wealth through second citizenship and real estate diversification is more important than ever. 

Investing in properties abroad, in countries with fewer climate risks and lower insurance costs, could seriously boost your long-term finances.

Is it the End of Cheap Homeowners Insurance in the US?

Rising insurance costs were already a growing concern across the US, but California’s devastating wildfires could be the tipping point. 

The disaster is expected to further destabilise California’s already fragile insurance market, where seven of the top twelve insurers have reduced or paused coverage since 2022.

California’s strict price regulations once made homeowners’ insurance relatively affordable, even in high-risk areas. For example, in 2023, homeowners in Pacific Palisades paid a median annual premium of US$5,450 – less than many lower-risk areas like New Orleans’ Lower Ninth Ward. 

However, price caps also pushed insurers out of the market, forcing 450,000 California homeowners onto the bare-bones FAIR Plan.

Now, with insurers grappling with rising reinsurance costs and regulatory changes allowing rates to better reflect climate risks, premiums are poised to soar even higher. 

Combined with inflation driving up rebuilding costs, affordable homeowners insurance may soon be a thing of the past in the US.

How a Second Citizenship Combats Rising Home Insurance Costs

If you’re living in a state with high or even mid-range home insurance costs, you might be better off selling your property and moving. 

But instead of just relocating to another state, why not go further? A second citizenship could open the door to a better lifestyle and major financial relief.

In Portugal, for example, average annual home insurance premiums are around €70 a year while in Colombia, they’re just over US$450 – compare that to states like Nebraska, where premiums top US$5,500 annually. 

By moving abroad, you could save anywhere from US$2,000 to US$10,000 each year on insurance. Over 30 years of homeownership, that’s US$60,000 to US$300,000 in savings – money you could put to better use. 

It’s not just about savings. Overseas real estate often gives you more for your money.

In Latvia, US$300,000 could buy you a spacious villa with a garden near the Baltic Sea. In Greece, the same amount could get you a charming condo overlooking the Aegean Sea.

Both countries also offer Golden Visa programs, granting you residency, and eventually citizenship, when you buy property.

This isn’t limited to Greece or Latvia. Many countries offer residence or citizenship through real estate investment. 

So, these programs don’t just help you escape sky-high US insurance costs. They could also let you invest in property, secure a second passport and enjoy perks like lower living costs and improved quality of life.

And the benefits go even further, encompassing:

• Tax savings: Certain countries with real estate incentives also offer favourable tax regimes, such as zero capital gains taxes for foreign income or territorial tax systems.
  
• Diversified assets: A second citizenship diversifies your wealth and reduces dependence on the US economy and government.

The 2025 Pacific Palisades fires are just one example of why it’s time to rethink your strategy.

With US insurance costs climbing and natural disasters becoming more frequent, securing a second citizenship is both a lifestyle upgrade and a smart financial move. 

This way, you can protect your wealth from never-ending economic downturns or political instability.

How Do You Get a Second Citizenship? 

There are several ways to get a second passport, each with its own benefits and requirements. Let’s break it down:

• Citizenship by Descent: If your parents or grandparents were citizens of another country, you might qualify. It’s one of the easiest paths, but it depends on the laws of the country and your ability to prove ancestry.
  
• Naturalisation: Many countries offer citizenship if you’ve lived there legally for a specific number of years and meet their language or cultural requirements.
  
• Marriage: Marrying a citizen of another country can fast-track your path to citizenship, although the residency rules and timelines vary widely.
  
• Citizenship by Investment: This is the fastest route, allowing you to secure a passport by investing in real estate, government funds or local businesses.

So, which path is best for you?

If you’re planning to sell your US property and move, citizenship by real estate investment might be your best bet. Here’s why:

• Easy transition: You’re already looking to relocate, so swapping your US property for a qualifying property abroad could help you gain citizenship.
  
• Accessible entry points: Many countries set the bar at US$250,000 – US$350,000 for real estate investment.
  
• Higher investment options: If you’re open to investing more – say, US$500,000 or more – you’ll unlock opportunities in premium markets.
  

Even if real estate investment isn’t your thing, some countries offer other investment-based citizenship options that could still work for you.

But what about insurance costs overseas?

One of the perks of second citizenship is the drastic reduction in home insurance costs. In many countries where you’d look for offshore real estate, annual premiums are a fraction of what you’d pay in the US.

With the rising insurance costs in the US, especially in disaster-prone areas like California or Florida, now is the time to explore your options. 

Home Insurance Costs in Southern Europe

Southern Europe, with its beautiful coastlines, spirited culture ‌and easy-going lifestyle, is a great place to move to and gain a second citizenship. ‌

Here’s a glimpse of what you can expect to pay yearly for homeowners insurance in some of the region’s most popular destinations:

●       Portugal: US$80–$400 (older, more historic homes can be expensive to insure)

●       Greece: US$150–$400

●       Spain: US$200–$600

●       Italy: US$250–$700

●       Cyprus: US$150–$400.

Second-Citizenship Programs for Homeowners in Southern Europe

To make things even better, many of these countries not only offer citizenship programs but also deliver excellent healthcare, a high standard of living and affordable housing.

Take Malta, for example. Its requires a mix of contributions to the National Development and Social Fund, a real estate purchase and a government bond investment. To qualify, you’d need to buy a property worth at least €600,000 or rent one for €16,000 per year.

It’s not cheap, but it does give you access to an EU passport.

Greece’s Golden Visa program is another standout. For just €250,000 in real estate investment, you get residency and a pathway to citizenship. It’s one of the lowest entry points in Europe for a deal this good.

Portugal also offers a Golden Visa, but there’s a catch – real estate is no longer the golden ticket. You’ll need to invest in government bonds or businesses instead. 

In general, if you have the appetite for investment, it’s worth keeping all of the above programs on your radar as they offer not only a second passport but a ticket to a better lifestyle.

Home Insurance Costs in Eurasia 

The Eurasian Economic Union (EEU) goes relatively unnoticed, but it has some really good real estate and lifestyle opportunities for those who seek a second citizenship.

Here’s what you can expect to pay ‌for home insurance in this beautiful part of Europe:

●       Albania: US$100–$300 per year

●       Montenegro: US$150–$400 per year

●       Latvia: US$200–$400 per year

●       Estonia: US$100–$300 per year.

Second-Citizenship Programs for Homeowners in Eurasia

Several countries in the EEU region offer paths to second citizenship, many of which include real estate investment options. 

If you’re looking for a straightforward and cost-effective route, Montenegro’s residency-by-investment program is tough to beat. 

With minimal investment requirements, it’s one of the easiest ways to secure a second passport. 

For around US$300,000, you could snag a luxury apartment in Budva, a picturesque coastal town, or a cosy mountain chalet perfect for escaping the hustle of city life.

Latvia’s Golden Visa program is another standout. For a real estate investment starting at €250,000, you can secure residency in this underrated gem of Northern Europe. Riga’s real estate market is thriving, offering some of the best value for money in the region. 

Imagine owning a charming, well-built European-style home surrounded by nature in a vibrant, forward-thinking city. 

If you’re looking to invest smartly and upgrade your lifestyle, these countries should definitely be on your radar.

Home Insurance Costs in Latin America

There are many good reasons why Latin America is popular with American expats.

It’s a beautiful part of the world, with friendly people , delicious food, a low cost of living and very affordable housing (including insurance).

Here’s what you might expect to pay:

●       Panama: US$300–$800 per year

●       Mexico: US$250–$600 per year

●       Uruguay: US$400–$1,000 per year

●       Colombia: US$200–$500 per year.

Second-Citizenship Programs for Homeowners in Latin America

Latin America offers a unique blend of beauty, culture and affordability.

Beyond that, many countries in the region provide straightforward pathways to citizenship for those investing in real estate. 

For example, take Panama, whose Friendly Nations Visa is a favourite among expats. By investing US$200,000 in real estate, it’s possible to secure residency and work towards citizenship. Panama has a territorial tax system, meaning you’re only taxed on income earned inside the country. 

Combine this with its thriving expat community, stunning beaches and world-class infrastructure, and Panama is hard to beat for anyone seeking a second passport.

Mexico is another strong contender. Its residency program is refreshingly simple. 

For a real estate investment of US$260,000, you qualify for a four-year temporary residency visa. After that, you can apply for permanent residency, and just one year later, you’re eligible to apply for citizenship. 

Mexico offers diverse lifestyle options, from vibrant urban living in Mexico City to laid-back beach towns like Tulum. 

With its proximity to the US and relatively low cost of living, it’s no wonder so many people already choose Mexico as their second home.

If you’re thinking about investing in real estate, Latin America offers you the chance with benefits that go far beyond the property itself.

Home Insurance Costs in the Caribbean

US citizens can live a life surrounded by turquoise waters, white-sand beaches‌ and timeless experiences for the same price or even less than what they were paying in the States.

Here’s a taste of what you can expect to pay for home insurance in the Caribbean:

●       Grenada: US$400–$1,000 per year

●       St Kitts and Nevis: US$500–$1,200 per year

●       Antigua and Barbuda: US$600–$1,500 per year

●       Dominica: US$300–$800 per year

●       St Lucia: US$400–$1,000 per year.

Second-Citizenship Programs for Homeowners in the Caribbean

The Caribbean is an absolute gem for second-citizenship seekers. 

Beyond its beaches and year-round sunshine, these islands offer serious financial benefits: zero wealth, inheritance or personal income taxes, plus visa-free or visa-on-arrival access to over 140 countries. 

That’s a hard deal to pass up.

Take Grenada, for example. Its citizenship-by-investment program offers two real estate options – invest US$350,000 solo or team up with others and put in US$270,000 each for a joint project. 

Either way, you’re unlocking a second passport.

Then there’s St Kitts and Nevis, home to the world’s oldest citizenship-by-investment program. Here, a US$350,000 real estate investment secures you citizenship. 

With its tax-friendly policies and elegant island lifestyle, it’s no wonder St Kitts and Nevis has been a go-to for savvy global citizens for decades.

For families, Antigua and Barbuda’s citizenship by investment program offers a US$300,000 investment that covers citizenship for you and up to four dependents. That’s a deal few countries can beat, especially since many other programs charge extra per dependent. 

Dominica, known as the ‘nature island’, is perfect for those who love the great outdoors and just happens to have the most budget-friendly citizenship-by-investment program in the region. 

With a real estate investment of just US$200,000, you can claim citizenship and explore rainforests, stunning waterfalls and volcanic hot springs.

Finally, there’s St Lucia’s citizenship by investment program, where a US$300,000 real estate investment gets you a second passport and access to some of the most breathtaking natural wonders in the Caribbean. 

If you’ve been dreaming of an island escape, these programs don’t just offer second citizenship – they open the door to a better, freer and more tax-efficient living. 

Second Citizenship Also Gives You a Plan B

Life is unpredictable.

Second citizenship isn’t just about tax breaks or better real estate deals, it’s also about security. It’s knowing that if the unexpected happens, you and your family have options. 

You never know what’s on the horizon. Political turmoil, natural disasters or economic instability can hit when you least expect it.

As we at Nomad Capitalist always say, it’s about going where you’re treated best. Having a second citizenship and a backup home gives you the freedom to leave when staying no longer makes sense. 

Escape Rising US Home Insurance Costs: FAQs

Want to Escape US Taxes Forever?

A second citizenship isn’t just about cutting your rising homeowner insurance costs or finding a better place to live – it’s about taking back control of your financial future and creating a life on your terms.

One of the biggest advantages is the chance to escape US taxes forever. 

By securing a second citizenship, you have the option to renounce your US citizenship entirely, which means you will no longer have to deal with the IRS. 

If that’s your ultimate goal, you’ll want experts who’ve guided thousands through the process. 
That’s exactly what we do, so let us help you go where you’re treated best. Ready to take the next step? Start your journey by getting in touch today.