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Low-income homeowners pay more for insurance in most states

In Detroit’s lowest-earning neighborhood, home insurance is $1,919 more annually than in the city’s highest-earning district.

"The conditions that produce expensive home insurance rates for anyone, regardless of income level, may be exacerbated in low-income areas,” said Andrew Hurst, of ValuePengin.com. (Credit: Mark/Adobe Stock) “The conditions that produce expensive home insurance rates for anyone, regardless of income level, may be exacerbated in low-income areas,” said Andrew Hurst of ValuePenguin.com. (Credit: Mark/Adobe Stock)

On average, homeowners in low-income areas pay $117 more for home insurance than residents in wealthier districts, a trend that is more pronounced in the largest cities in 34 states, according to ValuePenguin.com.

The “surcharge” low-income homeowners pay equates to about 1% of the median income average across the largest cities’ lowest-earning neighborhoods. This figure can reach as high as 11% in some states, the site reported.

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Steve Hallo

Steve Hallo

Steve Hallo is managing editor of PropertyCasualty360.com. He can be reached at [email protected].  

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