Homeowners in the U.S. have seen their insurance costs rise sharply over the past six years, with the steepest hikes happening just recently. According to a new report from LendingTree, rates stayed mostly steady between 2019 and 2021 but began climbing in 2022 and have surged in both 2023 and 2024.
From 2019 to 2021, insurance rates went up modestly by about 2% each year. But in 2022, rates jumped 5.4%, followed by an 11% increase in 2023 and another 11.4% hike in 2024. Over the full six-year period, the average cost of homeowners insurance rose by 40.4%. Today, the typical annual premium stands at $2,801 nationwide.
Some states are feeling these increases more than others. Oklahoma leads with the highest average rate, at $6,133 per year, followed by Nebraska at $5,912 and Kansas at $5,412. On the other hand, Hawaii offers the most affordable coverage with an average of $632 annually, with California and Vermont also on the lower end.
The biggest jumps in insurance prices between 2019 and 2024 happened in Colorado, Nebraska, and Utah, with hikes of 76.6%, 72.3%, and 70.6% respectively. Natural disasters appear to be a key reason behind these spikes. Colorado experienced 24 major costly events during this time, Nebraska saw 25, and Utah has faced more wildfire damage, pushing insurers to increase rates.
In 2024 alone, Montana and Nebraska saw the largest year-over-year increases at 22.1%, while Minnesota and Washington both rose by 19.5%. Some states saw much smaller boosts this year, including Florida (1.7%), Texas (3.4%), and New York (3.8%). Over the full six years, Vermont, Alaska, and Maine had the smallest overall rate rises, keeping homeowners’ premiums relatively low.
The findings come from data compiled by Quadrant Information Services and RateWatch from S&P Global, using a standard set of coverage amounts and deductibles to compare rates fairly. Coverage levels in the analysis included $400,000 for dwelling protection, $200,000 for personal property, and a $1,000 deductible, among other details.
As natural disasters become more frequent and expensive, insurers are adjusting their prices to cope. For homeowners, this means rising insurance bills, especially in states prone to fires, storms, and other severe events. Keeping an eye on insurance costs and shopping around might be more important now than ever.