KINGSTON, Jamaica — Home insurance premiums in Jamaica have surged in recent years, leaving many pensioners and working families unable to afford coverage for their properties. Experts say the combination of global reinsurance shocks, increased natural disaster risks, and widespread underinsurance has created a “perfect storm” for the local insurance market.
Insurance Out of Reach for Many
For homeowners who have already paid off their mortgages, the situation is particularly difficult. Without the benefit of bank-negotiated group rates, many are forced to seek independent coverage at higher retail prices. Some, unable to manage the steep monthly costs, are choosing to forgo insurance altogether — a risky decision in a country vulnerable to hurricanes and earthquakes.
Industry sources indicate that fewer than 50 per cent of homes in Jamaica are insured, and a significant number of those are under-insured. This means that in the event of damage, payouts may be reduced under the “average clause” if the property is not insured for its full replacement value.
Global Factors Driving Up Premiums
Local insurers say a major factor behind rising costs is the global reinsurance market, which determines how much Jamaican companies pay to protect themselves from catastrophic losses. When international reinsurers increased their rates, local companies had little choice but to pass those costs on to policyholders.
“Jamaica is exposed to two major catastrophic perils — hurricanes and earthquakes — and that naturally drives up the price of coverage,” one industry executive told Jamaica Homes News. “It’s not just a local issue; it’s part of a global recalibration of risk.”
How Much Does Home Insurance Really Cost?
While there is no official average premium by home size, insurance guides suggest that Jamaican homeowners typically pay between 1–2 per cent of the property’s rebuild value per year.
For a standard four-bedroom home with a rebuild value of US $180,000 to US $240,000, that works out to between US $1,800 and US $4,800 annually — or roughly US $150 to US $400 per month.
This makes the oft-cited figure of US $150 per month a reasonable estimate for a modest, lower-risk home, though rates vary depending on location, materials, and coverage level.
Mortgaged Homes Still Protected
Homeowners with active mortgages remain in a stronger position, as lenders are legally required to ensure their financed properties are covered. Banks often negotiate preferential group insurance rates, which can significantly lower premiums. Once the mortgage is paid off, however, that benefit disappears, and many homeowners face higher costs when seeking private coverage.
Calls for Reform and Relief
Consumer advocates have urged policymakers and insurers to develop more affordable, flexible insurance products — such as microinsurance and parametric options — to help protect lower-income homeowners.
Some relief could be on the horizon. Market analysts note that global reinsurance prices began to ease in early 2025, creating an opportunity for local insurers to review and potentially lower premiums.
Lessons from Recent Disasters
The financial toll of underinsurance was highlighted following Hurricane Melissa, which inflicted billions in insured losses and widespread destruction across several parishes. Many households without coverage were forced to rebuild using personal savings, loans, or community help.
Industry experts warn that, without meaningful policy changes, Jamaica will remain vulnerable. “Insurance is a key pillar of resilience,” said one financial analyst. “If half the country’s housing stock is uninsured, then every major storm becomes not just a weather event, but an economic setback.”
Disclaimer
This article is intended for informational purposes only and does not constitute financial or legal advice. Insurance costs and coverage options vary depending on individual circumstances, property values, and insurer policies. Readers are encouraged to seek independent professional advice or contact licensed insurance providers for accurate quotations and guidance tailored to their situation. Jamaica Homes does not endorse or represent any specific insurer or financial institution.