Homeowners Insurance Soars in 10 US States: Report

Homeowners insurance rates have risen dramatically from January 2023 to February 2024, according to a report.

The average home insurance cost nationwide rose to $1,759 this year-or about $147 a month-for policies with $250,000 in dwelling coverage. The number is about 23% more than the $1,428 home insurance average in 2023 for the same level of coverage, per a recent report from Bankrate, which analyzed data provided by Quadrant Information Services.   

Several factors play a role in the rising homeowners insurance rates, including increasing numbers and severity of weather-related disasters caused by hurricanes and tornadoes. In California, for example, more than 35 million residents remain under flood watch on Tuesday as moderate to heavy rains influenced by an atmospheric river blankets the state. 

In addition, the western U.S. has been hit by a series of droughts and heatwaves, which led to "extraordinary wildfire seasons," per the National Oceanic and Atmospheric Administration. 

Apart from the more frequent occurrences of weather-related disasters, insurance rates are also rising due to the elevated cost of building materials. According to an analysis by Mercury Insurance, the cost of building residential properties rose almost 28% in 2020. 

Where Did Homeowners Insurance Increase the Most?

At least 10 states in the country saw the greatest increase in homeowners insurance, per Bankrate. These states include:

• Louisiana

  • Average insurance premium as of February 2024: $270.50

  • Increase since January 2023: 63%

  • Difference from national average: $1,488

• Nebraska

  • Average insurance premium as of February 2024: $395.41

  • Increase since January 2023: 61%

  • Difference from national average: $2,986

• Colorado

  • Average insurance premium as of February 2024: $267.67

  • Increase since January 2023: 49%

  • Difference from national average: $1,453

• Arizona

  • Average insurance premium as of February 2024: $148.17

  • Increase since January 2023: 40%

  • Difference from national average: $19

• Utah

  • Average insurance premium as of February 2024: $82.92

  • Increase since January 2023: 37%

  • Difference from national average: -$804

• Illinois

  • Average insurance premium as of February 2024: $158

  • Increase since January 2023: 35%

  • Difference from national average: $137

• District of Columbia

  • Average insurance premium as of February 2024: $99.17

  • Increase since January 2023: 33%

  • Difference from national average: -$569

• North Dakota

  • Average insurance premium as of February 2024: $209.92

  • Increase since January 2023: 33%

  • Difference from national average: $760

• Arkansas

  • Average insurance premium as of February 2024: $234.80

  • Increase since January 2023: 32%

  • Difference from national average: $1,050

• Kansas

  • Average insurance premium as of February 2024: $4,072

  • Increase since January 2023: 32%

  • Difference from national average: $2,313

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