In the last few years, homeowners insurance prices have surged dramatically, outpacing inflation significantly. As of 2024, the national average premium for a standard policy has soared to an astonishing $3,303. This alarming trend highlights the increasing financial burden on homeowners.
According to a recent analysis by the nonprofit organization Consumer Federation of America (CFA), from 2021 to 2024, the average cost of home insurance rose by approximately 24%. This increase translates to a staggering $21 billion hike in total premiums nationwide, with rates climbing almost twice as fast as inflation. Data from the Labor Department indicates that overall consumer prices increased by just 13.2% from December 2021 to December 2024.
For individual homeowners, this translates to an average increase of about $648 in annual premiums over this three-year span, underscoring the significant financial impact on families and individuals alike.
Sharon Cornelissen, CFA’s director of housing and a lead author of the report, emphasized, “The soaring cost of insurance premiums is exacerbating the ongoing housing crisis.” She added, “Homeowners nationwide are experiencing substantial financial strain.”
Identify the Regions with the Highest Home Insurance Costs
The CFA’s findings reveal that homeowners insurance premiums have escalated in an alarming 95% of U.S. ZIP codes. In fact, in one-third of these areas, premiums have surged by over 30% in recent years, illustrating a widespread issue affecting many regions.
Some specific areas have been particularly hard hit, especially in the Southern United States. In eight metropolitan regions, the cost of a typical home insurance policy exceeds $5,000 annually. Notably, these include:
- Miami: where the average policy costs a staggering $15,438
- Jacksonville, Florida: with costs reaching $5,258
- Louisville, Kentucky: where the average policy is $5,122
Moreover, homeowners in six major cities are facing price hikes exceeding 40%, demonstrating the intense pressure on these markets:
- Salt Lake City: experiencing a remarkable 62% increase in home insurance costs, with an annual premium of b,796
- New Orleans: where homeowners face a 58% increase, leading to an annual premium of $10,522
- Jacksonville, Florida: witnessing a 47% increase, now costing $5,258 per year
- Phoenix: also seeing a 47% increase, with annual premiums at $2,278
- Chicago: facing a 46% increase, with average premiums now at ,876
- Pittsburgh: where premiums have increased by 42%, costing around $1,764 per year
While percentage increases provide valuable insights, they do not always convey the complete narrative. For instance, although Salt Lake City has recorded the highest percentage growth at 62%, the actual costs of home insurance there remain significantly lower than the national average.
In terms of dollar amounts, homeowners in New Orleans and Miami experienced the most substantial nominal increases, with prices rising by $3,878 in New Orleans and $2,731 in Miami over the past three years.
These trends are consistent with data released in March by the financial firm Intercontinental Exchange, indicating a staggering 61% spike in home insurance prices over the past five years.
Currently, the upward trajectory of home insurance premiums is driven by a combination of increasingly frequent natural disasters and soaring material costs for repairing damaged properties. Unfortunately, no relief appears to be on the horizon. Recently, devastating hurricanes in Florida and catastrophic wildfires in California have caused unprecedented damages.
Such catastrophic natural disasters have far-reaching impacts on home insurance prices nationwide, as insurers frequently raise rates in one region to recover costs incurred in another area — a practice referred to as “cross-subsidizing.”
The rising premiums exert additional pressure on homeowners and prospective buyers, particularly as they already grapple with historically high housing costs. In several major cities, the CFA reports that over a quarter of homeowners are now spending more on home insurance and taxes each month than on their mortgage payments.
A separate study conducted by the CFA in 2024 found that approximately 6 million homeowners are opting to forgo home insurance altogether. Unfortunately, many of these individuals belong to lower-income brackets who feel they have no other viable options.
To compile its 2025 home insurance report, the CFA acquired proprietary data on insurance premiums across all U.S. ZIP codes. The organization emphasizes that access to public data regarding home insurance costs is vital and is urging lawmakers and regulators to mandate that insurance companies disclose their transactions with consumers, similar to the transparency required of mortgage lenders.
Explore More Insights on Homeowners Insurance Trends:
Sticker Shock: Homeowners Frustrated by Rising Insurance Rates and Lengthy Claims Processes
10 Essential Home Upgrades That Can Help Reduce Your Insurance Premiums
Homeowners Increasing Insurance Deductibles to $5,000 or More for Cost Savings
