Reducing home insurance costs through residency, citizenship programmes
Joy Agwunobi
The rising cost of home insurance has become an urgent global concern, burdening homeowners with escalating financial pressures.
As the frequency and severity of natural disasters continue to increase, insurance providers are raising premiums to recover mounting losses, placing even greater strain on homeowners, particularly those in disaster-prone areas. This challenging scenario has left many seeking practical solutions to safeguard their assets and minimise costs.
One potential solution comes from RIF Trust, a global leader in Residency by Investment (RBI) and Citizenship by Investment (CBI) programmes, offering an alternative path for individuals seeking to relocate to regions with lower exposure to natural disasters and more affordable insurance options.
The impact of climate change is no longer a distant concern but a daily reality. From catastrophic floods in Brazil and Uruguay to destructive wildfires in California, the past year has underscored that no region is immune to the threat of natural disasters. These events have caused billions of dollars in damages, and insurance companies, grappling with the financial fallout, have been forced to increase home insurance premiums significantly.
In April and May 2024, heavy rains and storms caused devastating floods in Rio Grande do Sul, Brazil, and Uruguay, displacing over 400,000 people and resulting in at least 183 fatalities, according to the Center for Disaster Philosophy. Similarly, from October to November 2024, eastern Spain was hit by extreme rainfall, leading to the tragic loss of 224 lives, with Valencia being the hardest-hit region. Nearly half of the victims were aged 70 or older, as reported by Euronews.
In the United States, Hurricane Helene struck the Floridian coast between September 24 and 27, 2024, leaving destruction in its wake, spreading across Georgia, North Carolina, and South Carolina, with damages estimated at €250 billion. Meanwhile, Typhoon Yagi devastated Southeast Asia and South China, resulting in nearly 600 deaths, with Vietnam suffering the greatest loss of life. Afghanistan and Pakistan also experienced catastrophic flooding from March to September, and California’s wildfires, now extending into early 2025, are projected to be the costliest in U.S. history, surpassing $200 billion in damages.
RIF Trust highlights the importance of acknowledging the profound implications of these recurring disasters, emphasising the need for innovative solutions to mitigate future risks. The firm points to Residency and Citizenship by Investment programs as a strategic opportunity for individuals seeking relocation to safer regions with more affordable insurance options.
The firm also noted the growing concern over rising home insurance premiums in high-risk areas, such as California and Florida, where insurance providers are pulling out of the market and refusing to renew existing policies. The situation is further compounded by insurers’ reluctance to cover properties in high-risk zones, leaving homeowners with limited options.
RIF Trust stresses that the surge in home insurance costs is not limited to the U.S., although prices there tend to be disproportionately high compared to other countries. In the U.S., for instance, home insurance premiums can range from $515 annually in Hawaii to $5,495 in Oklahoma, with the national average standing at $1,915. Meanwhile, countries like Portugal, Spain, and the U.K. offer significantly lower home insurance premiums, even below those in Hawaii.
According to RIF Trust, there are currently 8 countries offering Residency by Investment programs and 8 countries providing Citizenship by Investment options. However, U.S. citizens can also explore their Residency through the Investment programme and Malta’s dual residency and second citizenship investment opportunity.
The firm specifically highlights Canada as an attractive option, where home insurance premiums are typically up to 50 per cent lower than in the U.S. The Canada Start-up Visa program is particularly relevant for those interested in relocating.
Additionally, the Caribbean region, a popular vacation destination, offers several Citizenship by Investment options, such as Antigua and Barbuda, Dominica, Grenada, St. Kitts and Nevis, and St. Lucia, all with the benefit of reduced home insurance premiums despite the region’s vulnerability to hurricanes.
RIF Trust also underscores the advantages of Europe’s Golden Visa programs, particularly those in Greece, Portugal, and Spain, which provide access to better-value home insurance. By securing new residency or second citizenship, homeowners can potentially lower their insurance costs significantly.
The firm advises individuals interested in reducing their home insurance expenses to apply for residency or citizenship through investment programs as soon as possible. It also encourages prospective applicants to be mindful of programme-specific deadlines, such as the Spanish Golden Visa application deadline of April 2, 2025.
While homeowners can independently explore home insurance costs, RIF Trust emphasises the value of consulting a Residency and Citizenship Investment expert to streamline the process and identify the most effective solutions tailored to individual needs.
According to Mimoun Assraoui, CEO of RIF Trust, “High-net-worth individuals safeguard their wealth by paying close attention to even the smallest details.” He further explains, “As natural disasters become more frequent, insurance companies seek to offset their losses, which often leads to rising premiums.”
Assraoui highlights the advantages of securing a new residency or second citizenship, particularly for entrepreneurs: “Consider living in or becoming a citizen of a country where home insurance costs are significantly lower than what you currently pay. Imagine the substantial savings you could achieve in the long run. Isn’t that an appealing prospect?”