As the cost of recovering from natural disasters soars, insurance companies are asking homeowners to foot more of the bill in the form of higher insurance premiums.
Nationwide, homeowners insurance premium costs jumped 21% at renewal between May 2022 and May 2023, according to a recent analysis from online insurance marketplace Policygenius.
The hike comes after a spate of expensive natural disasters during 2022. Insurers paid out $99 billion in claims that year, the fifth most expensive year ever, according to Policygenius.
Policygenius says homeowners rates are now 35% higher than they were in 2021.
Here are the states that saw the biggest surge in homeowners insurance costs between 2022 and 2023. In compiling these rankings, Policygenius looked at internal data for 17,401 active home insurance policies quoted for renewal with Policygenius from May 20, 2022, to May 20, 2023.
A handful of states were excluded because of sample size. They are:
- Alaska
- Delaware
- Nevada
- North Dakota
- West Virginia
- Wyoming
10. Nebraska
Average annual homeowners insurance premium increase in this state: 25% ($376) as of May 2023
Average renewal premium paid in this state: $1,887 as of May 2023
Nebraska natural disasters include everything from drought and flooding to winter events.
From 1980 to early March 2024, there were 61 weather or climate disaster events in Nebraska that each racked up more than $1 billion in losses.
9. Alabama
Average annual homeowners insurance premium increase in this state: 25% ($372) as of May 2023
Average renewal premium paid in this state: $1,885 as of May 2023
Whether it’s tornadoes blowing through the state’s interior or hurricanes slamming into the coast, Alabama sees its share of natural disasters.
From 1980 to early March 2024, there were 110 weather and climate disaster events in Alabama with losses exceeding $1 billion each.
8. Arizona
Average annual homeowners insurance premium increase in this state: 26% ($211) as of May 2023
Average renewal premium paid in this state: $1,038 as of May 2023
Arizona can get hot, but drought and wildfires are the real natural threat in the state.
From 1980 to early March 2024, there were 33 weather and climate disaster events in Arizona where losses topped $1 billion.
7. Texas
Average annual homeowners insurance premium increase in this state: 27% ($458) as of May 2023
Average renewal premium paid in this state: $2,141 as of May 2023
Drought, severe storms — including hurricanes — and wildfires pose risks to homeowners in Texas.
From 1980 to early March 2024, there were more than 171 weather or climate disaster events in Texas that each resulted in more than $1 billion in losses.
6. Oklahoma
Average annual homeowners insurance premium increase in this state: 27% ($536) as of May 2023
Average renewal premium paid in this state: $2,549 as of May 2023
Drought and severe storms are the biggest disaster threats in Oklahoma, but wildfires and winter storms also can wreak havoc.
From 1980 to early March 2024, there were 108 weather and climate disaster events in Oklahoma with losses exceeding $1 billion each.
5. Louisiana
Average annual homeowners insurance premium increase in this state: 27% ($403) as of May 2023
Average renewal premium paid in this state: $1,876 as of May 2023
Drought, flooding, hurricanes and other severe storms all cause damages in Louisiana.
From 1980 to early March 2024, there were 97 weather and climate disaster events in Louisiana with losses exceeding $1 billion each.
4. South Dakota
Average annual homeowners insurance premium increase in this state: 28% ($328) as of May 2023
Average renewal premium paid in this state: $1,513 as of May 2023
Drought, flooding and severe storms can cause damage to homes in South Dakota.
From 1980 to early March 2024, there were 33 weather and climate disaster events in South Dakota with losses exceeding $1 billion each.
3. Colorado
Average annual homeowners insurance premium increase in this state: 30% ($473) as of May 2023
Average renewal premium paid in this state: $2,031 as of May 2023
Drought and wildfires are big risks that homeowners must face if they live in Colorado.
From 1980 to early March 2024, there were 70 weather and climate disaster events in Colorado with losses exceeding $1 billion each.
2. Idaho
Average annual homeowners insurance premium increase in this state: 31% ($189) as of May 2023
Average renewal premium paid in this state: $804 as of May 2023
Idaho residents have to contend with both wildfires and drought.
From 1980 to early March 2024, there were 31 weather and climate disaster events in Idaho with losses exceeding $1 billion each.
1. Florida
Average annual homeowners insurance premium increase in this state: 35% ($489) as of May 2023
Average renewal premium paid in this state: $1,896 as of May 2023
Drought, flooding, hurricanes, even winter storm events — Florida homeowners have to cope with the threat of many types of disasters.
From 1980 to early March 2024, there were 84 weather and climate disaster events in Florida with losses exceeding $1 billion each.
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