Key Factors Driving the Increase
Firstly, climate change plays a pivotal role. Severe weather events, such as hurricanes, wildfires, and floods, have become more frequent and intense. Consequently, this increase in natural disasters leads to higher insurance claims and, therefore, higher premiums. For this reason, experts project a 6% increase in 2024, pushing the average annual rate to $2,522 by the end of the year. Secondly, early weather forecasts predict a devastating hurricane season, which could cause further rate hikes in 2025.
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States Most Affected
To identify the states most impacted by rising rates, data science team analyzed homeowners insurance costs across the country. They projected rate increases based on historical pricing and local factors. An Insurify survey of American homeowners reveals how these rising insurance costs have affected their finances and attitudes toward homeownership.
Top Takeaways:
- Florida homeowners pay the most for home insurance, with an average annual rate of $10,996 in 2023. Insurify predicts costs will increase by an additional 7% in 2024, reaching $11,759.
- Louisiana follows with the second-highest home insurance rate at $6,354 annually. The state will see the greatest increase in 2024, with a projected 23% hike, bringing the average rate to $7,809.
- Six of the ten most expensive cities for homeowners insurance are in Florida.
- Sixty percent of homeowners don’t carry separate flood insurance, and 13% erroneously believed their standard home insurance policy included it.
Home Insurance Costs by State in 2024
Home insurance costs vary widely by state. Vermont residents pay the least, with an average annual rate of $918, compared to $10,996 in Florida. Here’s a detailed look at how much homeowners pay across the country:
| State | Average Annual Rate (2023) | Projected Annual Rate (2024) | Projected Change in 2024 |
| United States | $2,377 | $2,522 | 6% |
| Alabama | $3,939 | $4,281 | 9% |
| Alaska | $1,116 | $1,117 | 0% |
| Arizona | $1,961 | $2,108 | 7% |
| Arkansas | $3,368 | $3,662 | 9% |
| California | $1,782 | $1,921 | 8% |
| Colorado | $4,072 | $4,367 | 7% |
| Connecticut | $1,764 | $1,927 | 9% |
| Delaware | $1,207 | $1,265 | 5% |
| Florida | $10,996 | $11,759 | 7% |
| Georgia | $2,426 | $2,491 | 3% |
| Hawaii | $1,150 | $1,201 | 4% |
| Idaho | $1,636 | $1,718 | 5% |
| Illinois | $2,050 | $2,245 | 10% |
| Indiana | $1,866 | $2,001 | 7% |
| Iowa | $2,120 | $2,278 | 7% |
| Kansas | $3,437 | $3,666 | 7% |
| Kentucky | $2,476 | $2,672 | 8% |
| Louisiana | $6,354 | $7,809 | 23% |
| Maine | $1,322 | $1,571 | 19% |
| Maryland | $1,670 | $1,782 | 7% |
| Massachusetts | $1,863 | $2,001 | 7% |
| Michigan | $1,840 | $2,095 | 14% |
| Minnesota | $2,332 | $2,524 | 8% |
| Mississippi | $4,312 | $4,482 | 4% |
| Missouri | $2,706 | $2,697 | 0% |
| Montana | $1,778 | $1,997 | 12% |
| Nebraska | $3,962 | $4,292 | 8% |
| Nevada | $1,224 | $1,336 | 9% |
| New Hampshire | $1,225 | $1,259 | 3% |
| New Jersey | $1,267 | $1,323 | 4% |
| New Mexico | $3,362 | $3,554 | 6% |
| New York | $2,257 | $2,404 | 6% |
| North Carolina | $2,110 | $2,327 | 10% |
| North Dakota | $2,519 | $2,517 | 0% |
| Ohio | $1,342 | $1,405 | 5% |
| Oklahoma | $5,444 | $5,711 | 5% |
| Oregon | $1,232 | $1,287 | 4% |
| Pennsylvania | $1,306 | $1,368 | 5% |
| Rhode Island | $2,036 | $2,151 | 6% |
| South Carolina | $3,082 | $3,410 | 11% |
| South Dakota | $2,562 | $2,488 | -3% |
| Tennessee | $2,470 | $2,635 | 7% |
| Texas | $4,456 | $4,437 | 0% |
| Utah | $1,369 | $1,541 | 13% |
| Vermont | $918 | $977 | 6% |
| Virginia | $1,600 | $1,739 | 9% |
| Washington | $1,437 | $1,432 | 0% |
| Washington, D.C. | $1,203 | $1,276 | 6% |
| West Virginia | $1,392 | $1,398 | 0% |
| Wisconsin | $1,462 | $1,574 | 8% |
| Wyoming | $2,159 | $2,186 | 1% |
States with the Highest Home Insurance Rates
The states with the highest home insurance costs are particularly prone to severe weather events. Florida, Louisiana, Texas, Arkansas, and Mississippi are highly vulnerable to hurricanes. Texas, Colorado, and Nebraska face a growing wildfire risk. Nebraska, Texas, and Kansas are at high risk for tornadoes, being located in an area commonly known as Tornado Alley.
| State | Average Annual Rate (2023) | Projected Average Annual Rate (2024) | Difference in State vs. U.S. Average (2023) |
| Florida | $10,996 | $11,759 | +$8,619 |
| Louisiana | $6,354 | $7,809 | +$3,977 |
| Oklahoma | $5,444 | $5,711 | +$3,067 |
| Texas | $4,456 | $4,437 | +$2,079 |
| Mississippi | $4,312 | $4,482 | +$1,935 |
| Colorado | $4,072 | $4,367 | +$1,695 |
| Nebraska | $3,962 | $4,292 | +$1,585 |
| Alabama | $3,939 | $4,281 | +$1,562 |
| Kansas | $3,437 | $3,666 | +$1,060 |
| Arkansas | $3,368 | $3,662 | +$991 |
Fastest Rising Home Insurance Rates
data science team projects home insurance rates will increase by 6% across the country in 2024. However, homeowners in some states are feeling the burden of rising costs more acutely than others.
| State | Average Annual Rate (2023) | Projected Average Annual Rate (2024) | Projected Percentage Increase in 2024 |
| Louisiana | $6,354 | $7,809 | 23% |
| Maine | $1,322 | $1,571 | 19% |
| Utah | $1,369 | $1,541 | 13% |
| Montana | $1,778 | $1,997 | 12% |
| South Carolina | $3,082 | $3,410 | 11% |
| Illinois | $2,050 | $2,245 | 10% |
| North Carolina | $2,110 | $2,327 | 10% |
| Alabama | $3,939 | $4,281 | 9% |
| Connecticut | $1,764 | $1,927 | 9% |
| Kentucky | $2,476 | $2,672 | 8% |
States with the Lowest Home Insurance Rates
States less prone to severe weather, such as Vermont, Idaho, New Jersey, and Oregon, tend to have the lowest home insurance costs.
| State | Average Annual Rate (2023) | Projected Average Annual Rate (2024) | Difference in State vs. U.S. Average (2023) |
| Vermont | $918 | $977 | -$1,459 |
| Idaho | $1,636 | $1,718 | -$741 |
| New Jersey | $1,267 | $1,323 | -$1,110 |
| Oregon | $1,232 | $1,287 | -$1,145 |
| Delaware | $1,207 | $1,265 | -$1,170 |
| Hawaii | $1,150 | $1,201 | -$1,227 |
| Nevada | $1,224 | $1,336 | -$1,153 |
| New Hampshire | $1,225 | $1,259 | -$1,152 |
| Washington, D.C. | $1,203 | $1,276 | -$1,174 |
| Maryland | $1,670 | $1,782 | -$707 |