Homeowners Insurance Rates — A Frightening Statistic

Lending Tree does an annual look at home insurance rates. The 2025 State of Home Owners Insurance Report said from 2019 to 2021 homeowners rates were fairly stable. In 2019 rates rose just 2%. The 2020 average rate hike was 2.1% and it was 3% in 2021.

The 2022 to 2024 statistics tell a much different story.

In 2022 the rates rose 5.4%. Worrisome but not bad. The 2023 numbers were startling. They averaged more than doubled at 11% and were up 11.4% in 2024.

The average cost of homeowners insurance nationwide is $2,801. If you live I Oklahoma, Nebraska or Kansas, things get even worse. Oklahoma’s average yearly cost is $6,133, Nebraska’s average is $5,912 and in Kansas the average yearly cost is $5,412.

The lowest average rates are in the PIA Western Alliance states of Hawaii and California and in Vermont. Hawaii’s average is $632. The real surprise is the California which is overwhelmed with an homeowners insurance crisis. The Golden State’s average is $1,260.

The largest increases in the six-year period between 2019 and 2024 were Colorado with a 76.6% rise, Nebraska hit 72.3% and Utah saw an average of 70.6%.

In 2024, the PIA Western Alliance state of Montana and Nebraska had the biggest increases in 2024. Both saw average raises of 22.1%. The PIA Western Alliance state of Washington was hit hard, too. Washington’s average hike in 2024 was 19.5%.

It was tied for third with Minnesota.

The lowest average increases in the six years between 2019 and 2024 were Vermont at 12.2%, the PIA Western Alliance state of Alaska’s 12.9% and Maine at 17.9%

These are the coverages and deductibles used in the report:

• $400,000 dwelling coverage
• $40,000 other structures
• $200,000 personal property
• $80,000 loss of use coverage
• $100,000 liability
• $5,000 medical payments
• $1,000 deductible

Source link: Insurance Journal — https://bit.ly/40mqyjZ