Homeowners insurance rates have risen dramatically from January 2023 to February 2024, according to a report.
The average home insurance cost nationwide rose to $1,759 this year-or about $147 a month-for policies with $250,000 in dwelling coverage. The number is about 23% more than the $1,428 home insurance average in 2023 for the same level of coverage, per a recent report from Bankrate, which analyzed data provided by Quadrant Information Services.
Several factors play a role in the rising homeowners insurance rates, including increasing numbers and severity of weather-related disasters caused by hurricanes and tornadoes. In California, for example, more than 35 million residents remain under flood watch on Tuesday as moderate to heavy rains influenced by an atmospheric river blankets the state.
In addition, the western U.S. has been hit by a series of droughts and heatwaves, which led to "extraordinary wildfire seasons," per the National Oceanic and Atmospheric Administration.
Apart from the more frequent occurrences of weather-related disasters, insurance rates are also rising due to the elevated cost of building materials. According to an analysis by Mercury Insurance, the cost of building residential properties rose almost 28% in 2020.
Where Did Homeowners Insurance Increase the Most?
At least 10 states in the country saw the greatest increase in homeowners insurance, per Bankrate. These states include:
Louisiana
Average insurance premium as of February 2024: $270.50
Increase since January 2023: 63%
Difference from national average: $1,488
Nebraska
Average insurance premium as of February 2024: $395.41
Increase since January 2023: 61%
Difference from national average: $2,986
Colorado
Average insurance premium as of February 2024: $267.67
Increase since January 2023: 49%
Difference from national average: $1,453
Arizona
Average insurance premium as of February 2024: $148.17
Increase since January 2023: 40%
Difference from national average: $19
Utah
Average insurance premium as of February 2024: $82.92
Increase since January 2023: 37%
Difference from national average: -$804
Illinois
Average insurance premium as of February 2024: $158
Increase since January 2023: 35%
Difference from national average: $137
District of Columbia
Average insurance premium as of February 2024: $99.17
Increase since January 2023: 33%
Difference from national average: -$569
North Dakota
Average insurance premium as of February 2024: $209.92
Increase since January 2023: 33%
Difference from national average: $760
Arkansas
Average insurance premium as of February 2024: $234.80
Increase since January 2023: 32%
Difference from national average: $1,050
Kansas
Average insurance premium as of February 2024: $4,072
Increase since January 2023: 32%
Difference from national average: $2,313
