Why Are My Homeowners Insurance Premiums

So High?

Many homeowners are wondering why their premiums are going up. The fact is homeowners' insurance costs are spiking across the country – it’s not just you.

Homeowners insurance costs in the U.S. increased by an average of 19.1% between 2018 and 2023.

Based on these averages, if you were paying $1,500 a year in 2018, you could expect to pay $1,786.50 in 2023 – an increase of $286.50. Worse, this comes at a time when homeowners are also grappling with higher costs for food and other basic necessities.

Some states have seen even steeper price hikes. In 2022, homeowners' insurance premiums increased by an average of 4.9%. However, North Carolina saw price hikes of 12.4%, Oklahoma of 11.2%, and Arizona
of 11%1.

In Florida, some homeowners saw their premiums increase by more than 40% in 2023. The high prices are even prompting some homeowners to drop coverage or leave the state.

More price increases may lie ahead. State Farm, the largest home insurer in California, has received approval to raise prices by an average of 20% in the state in 2024.

What’s going on?

Simply put, personal insurance companies have been paying more in claims and related costs than they’ve been earning through premiums. To return to underwriting profitability, they’ve been raising rates.

See our Full Whitepaper on how to avoid Rate Hikes and Non-Renewals of your Home Insurance Policy.

Still have questions? Our Famously Friendly Humans are experts in securing home insurance for hard to insure homes, homes in wildfire risk areas and prior cancelled homes.