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Home insurance used to be an afterthought, but these days it’s a rapidly escalating expense that is believed to be “deepening the housing crisis,” according to the Consumer Federation of America (CFA).
A recent report from the CFA reveals a steep rise in homeowners’ insurance premiums, which jumped 24% between 2021 and 2024, reaching an average of $3,303. This increase far exceeds the average property tax bill of $1,889 in 2023, according to the Tax Foundation.
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If this pace continues, many homeowners could see their insurance rate double in roughly 10 years.
Unfortunately, this burgeoning insurance crisis isn’t limited to high-risk regions such as Florida, California and Louisiana. Rates are going up across the country and even homeowners in relatively “safe” states could see ballooning expenses in the near future.
Here’s a closer look at what’s driving up insurance costs for ordinary families, and how to protect yourself before the crisis spirals out of control.
Why homeowners insurance is going up
Inflation and climate change are the primary drivers of the property insurance crisis, according to a report from JPMorgan.
Climate disasters are becoming more frequent and less predictable, as scientists have been warning for years. Meanwhile, home prices have climbed rapidly, which means it costs more to repair or replace a home after it has been damaged. What’s more, inflation has raised the cost of building materials and labor, making it more expensive to repair or rebuild homes.
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While California and Florida are hit hardest by extreme weather, Midwestern states are also experiencing significant rate hikes due to increasing storm and flood damage. Insurify even predicts that the Midwest could see some of the steepest premium increases.
As insurers adjust pricing to reflect growing risks, homeowners across the country should expect higher insurance costs.
How to protect yourself
While you can’t change the insurance industry or reverse climate change, there are still ways to reduce rising insurance costs. Start by shopping around each year and comparing quotes to get the best rate.
Upgrading your home with climate-resilient features such as a stronger roof or updated wiring can help minimize weather damage and may qualify you for discounts. You can also lower your premiums by raising your deductible and avoiding small claims.
In some cases, relocating to a lower-risk area may be worth considering, as homeowners in high-risk regions pay an average of 82% more for insurance, according to the Federal Insurance Office.
Ultimately, shopping around is one of the best ways to find better rates, but calling individual providers can take a lot of time and effort.
OfficialHomeInsurance.com takes the hassle out of shopping for home insurance. In just under 2 minutes, you can explore competitive rates from top insurance providers, all in one place. OfficialHomeInsurance.com can make it easy to find the coverage you need at a price that could fit your budget.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
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