Premium Pressure

Home insurance premiums rose 20% in 2024 to a national average of $2,072, according to Rate Insurance’s analysis of its book of business. The highest average premiums were seen in Colorado ($3,280), Texas ($3,115) and Oklahoma ($2,918). Those states are particularly vulnerable to severe weather events, such as hailstorms and tornadoes, the report pointed out.

Meanwhile, the largest increases occurred in Hawaii (35.92%), California (35.91%) and Idaho (33.32%). While increases in Hawaii and California can be attributed to natural disaster risks and the resulting reinsurance costs and limited carrier ability, Idaho’s jump has been caused by a large amount of population growth over the past decade.

The lowest homeowners premiums can be found in Washington, D.C. ($985), Vermont ($986) and Oregon ($1,123) with their more stable claims environments and lower catastrophe exposure.



Coverage is shifting as home valuations and the costs of materials and labor continue to rise. In 2024, deductibles under $1,000 account for just 4.95% of Rate Insurance’s book of business, representing a 56% year-over-year decrease.

78%

THE AVERAGE INCREASE IN HOMEOWNERS INSURANCE PREMIUMS OVER THE PAST SIX YEARS.

SOURCE: RATE INSURANCE