The surge in home insurance prices isn’t over yet. This year the average annual premium will likely exceed $2,500 nationwide, and homeowners insurance will cost nearly $12,000 in the most hurricane-prone state in the country.
A new forecast from Insurify, an online marketplace, predicts that the cost of home insurance will increase 6% in 2024, which would push the average premium up to $2,522.
The average cost of home insurance in 2023, at $2,377, has already increased 20% compared to 2021, when the average premium was $1,984.
According to Insurify, the increase in premiums can be attributed to rising construction costs and recent climate disasters. Eight states, most of them vulnerable to coastal storms, are expected to see double-digit percentage increases in home insurance prices this year.
The largest increase is expected for Louisiana homeowners. Their premiums are expected to increase by a whopping 23%, from an average of $6,354 to $7,809.
But it is in Florida that homeowners will pay the most for insurance again this year: the average cost is expected to jump from $10,996 last year to $11,759 in 2024. Surprisingly, Florida residents pay about 12 times more for home insurance than residents of Vermont, where the average premium was $918 last year.
Betsy Stella, vice president of carrier management and operations at Insurify, said in a statement that the highest-risk areas of the country could become “uninsurable.” Over the past year, some insurance companies have limited their operations in certain markets and even exited states altogether. Stella adds: “Where there is demand, a supplier typically appears. The question will be: at what cost?”
The 10 Most Expensive States for Home Insurance
Coastal states that face hurricanes have the highest home insurance costs, but others that are hit by wildfires and tornadoes are also in the top 10 with the highest premiums. Here is the list of states that have the highest average home insurance costs as of 2023:
- Florida: $10,996
- Louisiana: $6,354
- Oklahoma: $5,444
- Texas: $4,456
- Mississippi: $4,312
- Colorado: $4,072
- Nebraska: $3,962
- Alabama: $3,939
- Kansas: $3,437
- Arkansas: $3,368
And here’s how much the average home insurance policy is expected to cost in these states in 2024:
- Florida: $11,759
- Louisiana: $7,809
- Oklahoma: $5,711
- Texas: $4,437
- Mississippi: $4,482
- Colorado: $4,367
- Nebraska: $4,292
- Alabama: $4,281
- Kansas: $3,666
- Arkansas: $3,662
Note: These are the average annual costs for a homeowner with good credit and no recent claims. The figures are for a policy with $300,000 of dwelling coverage and $300,000 of liability coverage.
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