10 States Where Home Insurers Could Jack up Rates the Most in 2024

Homeowners insurance rates are likely to rise again in 2024 as a combination of inflation and severe weather cause costs to rise, according to a recent analysis by Insurify.

Nationwide, rates are expected to rise by 6% this year, to an average of $2,522 by the end of the year. This year’s increase is expected to slow a bit from the pace of the 2021 to 2023 period, when rates jumped 19.8%.

Still, insurance is expected to grow more expensive this year and in 2025, making it even more difficult for many Americans to afford the bills associated with owning a home. And in the following states, costs are expected to jump higher than anywhere else.

States are ranked based on the expected percentage increase in rates, starting with No. 10 and counting down to No. 1 — where the projected increase is a whopping 23%.

10. Nevada

Average 2023 home insurance rate: $1,224

Projected rate at the end of 2024: $1,336 (an increase of about 9%)

Wildfires are always a risk in Nevada, and supply issues in the construction industry are making repairs more expensive.

Areas of the state that are perceived as higher-risk, such as Lake Tahoe and Mount Charleston, have seen more dramatic rate hikes than urban areas, according to the industry publication InsuranceNewsNet.

9. Connecticut

Average 2023 home insurance rate: $1,764

Projected rate at the end of 2024: $1,927 (an increase of about 9%)

Connecticut borders the Atlantic Ocean, and that puts it in danger of hurricanes, flooding and high winds. Those threats all drive rates higher, especially for those who live near the water. Snowstorms and ice dams also pose threat in Connecticut.

8. Illinois

Average 2023 home insurance rate: $2,050

Projected rate at the end of 2024: $2,245 (an increase of about 10%)

Risks in Illinois are somewhat lower than in other states, with tornadoes and hailstorms posing the greatest threats.

However, experts say costs may be rising because the state’s rate regulation rules do not require insurers to obtain permission from the state before hiking rates. In addition, supply chain issues and labor inflation continue to drive rebuilding and repair costs higher.

7. North Carolina

Average 2023 home insurance rate: $2,110

Projected rate at the end of 2024: $2,327 (an increase of about 10%)

Hurricanes are a major risk along the North Carolina coast, which helps drive rates higher in the state.

Brenda Wells, a professor and director of the risk management and insurance program at East Carolina University, recently told Policygenius that when her home insurance policy renewed in early 2023, her premium went up nearly 50%.

6. South Carolina

Average 2023 home insurance rate: $3,082

Projected rate at the end of 2024: $3,410 (an increase of about 11%)

Like its neighboring state to the north, South Carolina is often in harm’s way when hurricanes move up the Eastern Seaboard.

5. Montana

Average 2023 home insurance rate: $1,778

Projected rate at the end of 2024: $1,997 (an increase of about 12%)

Wildfires are a constant risk in western states such as Montana. Some experts in the state have suggested that one way to combat rising rates is to adopt zoning and building standards that help mitigate the risks wildfires pose.

4. Utah

Average 2023 home insurance rate: $1,369

Projected rate at the end of 2024: $1,541 (an increase of about 13%)

Utah is another western state where wildfires are a fact of life. Six counties are at a higher risk of fires, and it is especially challenging to find good, affordable coverage in the Wasatch Back.

3. Michigan

Average 2023 home insurance rate: $1,840

Projected rate at the end of 2024: $2,095 (an increase of about 14%)

Michigan is subject to weather risks that range from tornadoes to fierce and damaging winter weather. Flooding is also a constant danger in a state with so many bodies of water, but homeowners insurance typically does not cover flood-related damage.

2. Maine

Average 2023 home insurance rate: $1,322

Projected rate at the end of 2024: $1,571 (an increase of about 19%)

During the winter, Maine is one of the colder states in the U.S. That fact increases the risk of homeowners’ claims associated with roof damage from ice and snow, frozen and burst pipes and even injuries to others who slip and fall due to ice on your property.

1. Louisiana

Average 2023 home insurance rate: $6,354

Projected rate at the end of 2024: $7,809 (an increase of about 23%)

Louisiana is located along the Gulf Coast, and low-lying areas of the state are particularly vulnerable to damage from hurricanes. Some have also blamed overregulation of the state’s insurance market for driving costs higher.