Across the country, homeowners are opening renewal notices only to find their insurance premiums have jumped—sometimes by hundreds or even thousands of dollars per year. Even if your home is in perfect shape and you’ve never filed a claim, your costs could still be on the rise.
Why? Because the insurance industry spreads financial risk across regions. That means disasters in other areas may impact your rates—even if those events never touched your home.
Where Are Home Insurance Rates Rising the Most?
Some states are being hit harder than others, with rates climbing due to both natural disasters and market dynamics. Here's where things are getting particularly difficult:
California
California is experiencing one of the most severe home insurance crises in the country. In high-risk areas prone to wildfires, many insurers have either pulled out entirely or dramatically raised rates. Homeowners are increasingly forced into the California FAIR Plan, a state-backed insurance program designed for those who can’t find coverage in the traditional market. Even those in lower-risk areas are seeing rate hikes as insurers spread costs across the state.
Florida
Florida faces intense pressure from hurricane damage and a historically high number of lawsuits related to insurance claims. Several insurers have gone bankrupt or left the state, reducing competition and driving up premiums. Some homeowners report annual increases of 30% or more.
Texas
Texas has seen its share of extreme weather in recent years, including severe hailstorms and winter freezes. These events have led to high claim payouts and corresponding premium increases. Rural and suburban areas are especially affected.
Colorado
Wildfire-prone areas and high home values have put Colorado on the map for steep insurance rate hikes. Many homeowners are finding their premiums increasing by double digits year over year.
Louisiana
Following Hurricane Ida and other major storms, Louisiana's insurance market has become volatile. Insurers have exited the state or limited coverage, leading to sharp premium increases and reliance on last-resort programs.
What’s a Normal Home Insurance Premium Increase?
Historically, home insurance premiums have increased about 3% to 5% per year—which translates to a modest $5–$10 per month for the average homeowner. This accounts for inflation, small updates to rebuild cost estimates, and minor risk adjustments.
But lately, those “normal” increases are a thing of the past.
In many parts of the U.S., particularly high-risk states, homeowners are seeing double-digit increases year over year.
How Home Insurance Premium Increases Compared by State
To help you understand the scope of these changes, here’s a breakdown of average annual premium increases across the U.S.:
| State | Average Annual Increase (2023–2024) | What’s Driving It |
|---|---|---|
| California | 20% to 100%+ | Wildfire risk, insurer exits, rebuilding costs |
| Florida | 30% to 40% | Hurricane damage, litigation, reduced competition |
| Texas | 15% to 25% | Hailstorms, winter freezes, rising rebuild expenses |
| Colorado | 12% to 20% | Wildfires, high home values, mountainous terrain risk |
| Louisiana | 20% to 35% | Hurricane aftermath, insurer exits |
| National Avg | 9% to 12% | Construction inflation, reinsurance costs, claim volume |
| New York | 5% to 10% | Aging infrastructure, rising materials costs |
| Illinois | 4% to 8% | Tornado risk, supply chain inflation |
| Arizona | 10% to 15% | Increased wildfire exposure, regional development |
| Nevada | 6% to 10% | Rising labor costs, extreme heat impacts |
💡 Note: These are average estimates and may vary by ZIP code, provider, home age, and construction type.
Why Are You Paying More for Other People’s Disasters?
Insurance is designed as a risk-sharing model. When disasters happen—whether in your state or elsewhere—insurers spread the costs across all policyholders to stay solvent. Even if your home is far from hurricanes, wildfires, or hailstorms, your rates may rise to cover the overwhelming volume of claims in disaster-prone areas.
How to Keep Your Home Insurance Rates From Rising (As Much)
While you can’t control how insurers operate across the country, you can take action to limit how much your premiums increase:
1. Shop Around
Rates vary widely between insurers. Use online comparison tools or work with a broker who understands your regional market.
2. Raise Your Deductible
A higher deductible reduces your insurer’s risk—and your premium. Just be sure you can afford to pay it if needed.
3. Fortify Your Home
In high-risk states like California or Florida, home hardening steps—like fire-resistant roofing or hurricane shutters—can qualify you for discounts.
4. Bundle Coverage
Combining your home and auto policies with one insurer often unlocks significant savings.
5. Maintain Good Credit
In many states, insurers use credit-based insurance scores to help determine your premium. A better score often leads to better rates.
6. Ask About Discounts
Loyalty, security systems, claim-free records, and other factors may make you eligible for savings. Insurers won’t always volunteer this info—ask directly.
Final Thoughts
Rising home insurance rates are a national trend—but they hit especially hard in states like California, Florida, and Texas. Even if you’ve done everything right, you may be stuck paying for losses from catastrophes that never affected you. Still, by taking proactive steps—shopping around, upgrading your home’s defenses, and reviewing your policy—you can protect yourself from the worst of the increases.
