Home insurance premiums are surging in the United States, a cost that could force some households to leave their current state and move to another area with more affordable insurance policies.
In 2023, the average cost of home insurance for a $300,000 property was roughly $1,770, according to data from Insurify, an insurance comparison website headquartered in Massachusetts.
However, residents in states plagued by severe weather and other climate-related catastrophes, such as Florida and California, are paying even more for home insurance. In some cases, insurers are leaving states with numerous climate catastrophes, pushing prices even higher for homeowners.
Here are the five states where home insurance premiums are skyrocketing and are fast becoming unaffordable.
1. Florida
Average annual insurance cost for homes with $300,000 coverage: $9,213
Florida topped the list as the most expensive state for home insurance. The average annual cost of home insurance was $9,213 last year, which is 421% higher than the national average. Between 2022 and 2023, home insurance premiums jumped by 14% after several insurers stopped renewing policies or left the state due to hurricane risks and weather damages.
2. Oklahoma
Average annual insurance cost for homes with $300,000 coverage: $4,782
Home insurance premiums in Oklahoma are 170% higher than the national average. Last year, premiums rose 24% due to the weather and the rising cost of building materials.
3. Mississippi
Average annual insurance cost for homes with $300,000 coverage: $4,107
Between 2022 and 2023, home insurance premiums rose by 23%, with the annual premium hitting $4,107. That is roughly 127% higher than the national average. Insurance rates in Mississippi rose by 433% more than the income in the state last year.
4. Texas
Average annual insurance cost for homes with $300,000 coverage: $3,969
Insurance rates in Texas rose by 18% in 2023, bringing premiums 124% higher than the national average. The state had an unprecedented number of weather-related disasters last year, each costing over $1 billion. In total, shared losses in Texas cost more than $20 billion.
5. Kansas
Average annual insurance cost for homes with $300,000 coverage: $3,245
Home insurance rates in Kansas jumped 19% between 2022 and 2023, bringing the average to $3,245. That is 83% higher than the national average. The recent increase in premiums is linked to the severe weather and flooding in July last year. The state is also prone to wildfires.
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