Home Insurance Cost Has Soared 68% in This State

Home insurance premiums are soaring, and Mother Nature is at least partially to blame, according to the 2023 Policygenius Home Insurance Pricing Report.

Between May 2022 and May 2023, rates jumped by an average of 21% nationwide at renewal. Of the more than 17,000 polices renewed with Policygenius, 94% were quoted a higher premium. For many policies, it was the second consecutive annual increase. The company notes 91% of its renewals between May 2021 and May 2022 saw higher premiums.

Natural disasters played a big role in the rise, Policygenius says, as U.S. insurers paid out $99 billion in claims due to such events in 2022. And in some states, the situation was especially bad — so much so that insurers are pulling out of certain markets, which reduces competition and further increases prices for consumers.

Following are the states where homeowners insurance costs skyrocketed from May 20, 2021, to May 20, 2023.

Florida

Average increase in home insurance premiums: 68%

Florida is notorious for hurricane activity, and 2022 was the year that Hurricane Ian plowed into the state.

Briefly a Category 5 hurricane, Ian was a Category 4 storm as it wreaked havoc on the state’s west coast and made insurers more nervous about writing policies in the Sunshine State, as we reported in “5 Insurers That Are Leaving Florida — or Already Have.”

New Mexico

Average increase in home insurance premiums: 47%

Like many Western states, New Mexico is especially vulnerable to wildfires. Between April 6 and Aug. 21, 2022, the Hermits Peak/Calf Canyon Fire burned nearly 350,000 acres in the state. It was the largest wildfire in the state’s recorded history.

Idaho

Average increase in home insurance premiums: 46%

Idaho is another Western state where wildfires are a growing concern. Policygenius notes that inflation and a shortage of building materials are increasing the cost of replacing homes, which also contributes to rising insurance premiums.

Colorado

Average increase in home insurance premiums: 46%

The 2022 Marshall Fire and similar disasters in Colorado have spooked many insurers: Policygenius says three-quarters of insurers in the state have reduced their exposure.

Many people in Colorado own residences that are in harm’s way, as we reported in “Wildfires Threaten the Most Homes in These 3 States.”

Texas

Average increase in home insurance premiums: 46%

Texas rounds out the list of Western states where wildfires are causing insurance companies to hike their rates.

Last year, the Texas Department of Insurance approved 152 rate-increase requests on the part of insurers, Policygenius says. That was a jump from just 72 such approvals the year before.

Lowering your homeowners insurance rates

If home insurance rates are climbing in your neck of the woods, take steps to rein in your costs. One of the quickest and easiest ways to lower your costs is to use a service like The Zebra that will compare quotes from many different insurance companies.

For more tips, check out “How to Get the Best Deal on Homeowners Insurance.”

You can also trim the costs of owning a home by making sure you avoid the “3 Dumb Ways Homeowners Waste Money Every Month.”