Get Your Free Cash Offer Now!
Fill out this form to get your no-obligation all cash offer started!
Get Your Free Offer TODAY!
Fill In This Form To Get Your No-Obligation All Cash Offer Started!
What’s Causing the Rise in Insurance Rates?
There’s no single reason behind the surge in insurance premiums, but here are the most significant contributors:
1. Increased Natural Disaster Risk
While Ohio isn’t known for hurricanes or wildfires, it has experienced a notable rise in localized flooding, hailstorms, and tornado activity, especially in regions like Central and Southern Ohio. Insurance companies are adjusting premiums to account for higher risk exposure, even in urban areas like Columbus, Dayton, and Cincinnati.
2. Inflation in Building Materials
The cost of rebuilding homes after damage has skyrocketed. Lumber, concrete, copper, and labor prices have surged post-pandemic. As repair and rebuild costs rise, so do the replacement costs factored into homeowners policies.
3. Reinsurance Market Disruptions
Most insurance providers rely on reinsurance, which is essentially insurance for insurers, to manage large-scale risk. Global reinsurance markets have seen massive losses due to climate-related disasters, forcing local carriers to pass those costs on to Ohio residents.
4. Increased Claim Volume and Fraud
Even in relatively low-risk states like Ohio, fraudulent claims and aging housing stock contribute to higher claim volumes. That drives up operational costs for insurance carriers and eventually, premiums for everyone else.
How It’s Affecting Homeowners Trying to Sell
If you’re planning to sell your house fast in Ohio, rising insurance premiums may be one of your biggest, and most unexpected, hurdles. Here’s how:
Higher Holding Costs for Sellers
Homeowners already dealing with property taxes, mortgages, and maintenance now face steep insurance bills while trying to sell. For motivated sellers, especially those in pre-foreclosure, dealing with divorce, or inheriting a property, the added financial burden makes it even harder to wait for the right buyer.
This is where cash buyers in Ohio become an attractive option. Companies that buy houses for cash typically close quickly and often take on the property as-is, removing the need for the seller to continue paying costly premiums.
It's also worth noting that many sellers still believe common misconceptions about selling for cash, which can prevent them from exploring this faster alternative. Learn more by understanding The Biggest Myths About Selling a House for Cash in Ohio.
Reduced Buyer Pool
Buyers today are more budget-conscious than ever. With higher interest rates, mortgage payments are already straining affordability. Add a steep insurance premium to the monthly cost, and suddenly that affordable home in Cleveland or Toledo becomes out of reach.
The result? Fewer offers. Longer time on market. Price reductions. More failed deals.
And when multiple offers do come in, homeowners are often unsure how to handle them, especially when comparing buyer contingencies and timelines. Learn what to prioritize by reviewing How to Handle Multiple Offers When Selling Your Ohio Home Fast.
Delays Due to Underwriting
Even if you get an offer, insurance issues can delay or derail the closing. Many buyers now need to shop around for weeks to find an insurer who will even write a policy for the home they’re purchasing, particularly in older neighborhoods or areas prone to flooding.
Understanding the foreclosure process is also important for sellers under pressure from rising expenses and deadlines, as delays in closing can have legal consequences.
How It’s Impacting Investors and Cash Buyers
Investors looking to buy houses in Ohio are also facing new risks. While many investors are cash buyers and don’t need traditional financing, they still require insurance to protect their assets. Rising costs are narrowing profit margins and shifting investment strategies.
Shrinking Margins
For flippers, landlords, and rental portfolio buyers, insurance premiums are now one of the largest operating expenses. A $1,000 increase in annual insurance costs can significantly affect cap rates and ROI, especially for properties under $150,000.
This is pushing some investors to:
- Focus only on newer properties with lower risk profiles
- Exit certain zip codes entirely
- Pass costs onto renters, increasing rent in working-class neighborhoods
In addition, investors holding inherited properties may be subject to IRS inheritance rules, which can affect the overall profitability of a sale.
More Due Diligence Before Offers
Due diligence used to focus on comps and repair costs. Now, smart investors in Ohio are also pulling flood zone maps, checking past claims, and contacting insurers before they submit an offer.
This is especially true for out-of-state landlords and remote investors, who may be unaware of local risk factors until they encounter delays or added costs. If that sounds like your situation, here's What Out-of-State Homeowners Should Know About Selling an Ohio Rental Property.
It’s changing how fast deals get made and how many get abandoned mid-process.a
Insurance Hotspots in Ohio to Watch
While the entire state is experiencing rising costs, certain counties and cities are seeing sharper increases:
- Franklin County: Higher claim volumes in Columbus are pushing rates up
- Montgomery County: Hail damage and aging homes are making premiums spike in Dayton
- Cuyahoga County: Older housing stock in Cleveland means more frequent claims and rebuild issues
- Scioto & Lawrence Counties: Rural flooding and limited insurer competition drive higher rates
Hear From Our Happy Homeowners: Real Stories of Successful Home Sales
We've bought countless houses in Ohio fast and without stress. Here's what a few of them had to say:
"James and Brandon are great to work with. They helped me through the whole process. Brandon and James always answered my calls even if it was after work hours and took their time to explain things in detail, which is much appreciated. I highly recommend Skymount!"
Deneen Poulakos
"I bought a house that this company had updated and have been very pleased with how they handle repairs and communication. They really stand behind their work and commitment to customer satisfaction. I wouldn’t hesitate to purchase a home again that this company has updated! A++++"
Heather McQueen
Final Thoughts
The cost to insure a home in Ohio is rising quickly. For homeowners looking to sell, that means a tighter window to make a move before costs become unmanageable. For buyers and investors, it means more scrutiny, slower decisions, and bigger financial commitments.
Looking to sell your house in Ohio fast and skip the hassle of insurance delays, repairs, and red tape?
Skymount buys houses across Ohio in any condition. We make fair cash offers, close on your timeline, and remove the guesswork so you can move on confidently.
Get Your Free Offer TODAY!
Fill In This Form To Get Your No-Obligation All Cash Offer Started!