The average annual home insurance premium is projected to rise to $3,520, largely due to the impact of severe weather events such as wildfires and hurricanes, which are leading insurers to increase rates. States like California and Florida are seeing significant hikes; for instance, California may see a 21% increase due to wildfires, while Florida's costs are projected at $15,460—over four times higher than average. Additionally, Louisiana faces a steep 27% rise, making it challenging for insurers to operate profitably due to excessive claims payouts compared to premiums collected.
The average annual premium is expected to reach $3,520, up by an estimated $261 per household, driven by severe weather events forcing insurers to raise rates.
California is projected to see a 21% hike in home insurance premiums, largely due to destructive wildfires and regulatory changes that factor future climate risks into insurance pricing.
Florida remains the most expensive state for home insurance, with premiums expected to climb 9% to $15,460, more than four times the national average.
Louisiana is expected to see a 27% hike in insurance premiums, pushing average costs to $13,937, making it the least profitable state for insurers.
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