A recent study by Insurify predicts average homeowner's insurance rates will increase by 8% nationwide by year-end, reaching $3,520. States like Louisiana, Iowa, and California anticipate increases over 20% due to heightened risks from natural disasters, which have become more frequent and severe. With 27 major disasters in 2024 alone and the trend of rising claims costs for damages from events like hail, insurers are adjusting rates to manage these perceived risks effectively.
Home insurance rates are expected to rise across the country by the end of the year, according to a new study released by the digital insurance platform Insurify. The annual cost of homeowner's insurance is projected to increase 8%, to a national average of $3,520. However, some states like Louisiana, Iowa, and Hawaii are expected to see increases greater than 17%. "This is a group of states that insurers are catching up to the perceived risk that has accumulated," Insurify data expert Matt Brannon told Business Insider.
Insurance companies have incurred massive losses in recent years, as natural disasters have increased in frequency and severity. In 2024, there were 27 billion-dollar disasters in the US, which is topped only by a record-breaking 28 disasters in 2023.
"Insurance commissioners in multiple states in the Midwest are saying that hail is becoming an increasing problem for home insurers. Hail can inflict a lot of damage on roofs, and we know that roofs are very expensive to get replaced."
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