LIST: Home Insurance Costs Surged in 10 States Across the US

Bankrate’s analysis shows a significant increase in homeowner insurance rates.

In February 2024, the average monthly premium for a residence with $250,000 in dwelling insurance is approximately $141. This marks a 23% increase since January 2023.

Find out why rates are rising, where states are being affected the hardest, and how to keep your premiums low.

Several reasons contribute to the rising cost of homeowners insurance: Hurricanes, floods, tornadoes, and other severe events have caused a rise in claims around the country. Drought and heatwaves in the western US have caused “extraordinary wildfire seasons,” according to the National Oceanic and Atmospheric Administration.

More individuals are flocking to areas devastated by these natural disasters. During the pandemic, real estate business Redfin found that migration into flood-prone counties increased by more than treble, while wildfire-prone counties witnessed a 51% increase.

Higher construction expenses have made repairs more expensive. According to a Mercury Insurance report, residential building expenses have increased by approximately 28% since 2020, with a 12% increase in labor expenditures.

The insurance business has also suffered a hit: In the first nine months of 2023, State Farm, the largest home insurance company in the US, reported a record loss ratio of 84%, according to S&P Global. That implies a more than 20% increase over 2022.

Bankrate compared monthly premiums between January 2023 and February 2024 for $250,000 of dwelling coverage for a 40-year-old couple with good credit and a clean claims history, using Quadrant Information Services data for ZIP codes and carriers in all 50 states and the District of Columbia.