Home Insurance Premium Hikes Go National
Six months after devastating wildfires swept through parts of Los Angeles, the damage in neighborhoods like Altadena and Pacific Palisades is still impossible to miss. Entire blocks of homes and businesses remain burned out, and recovery has been slow.
While California’s insurance market hasn’t collapsed, homeowners are still feeling the impact. Insurify projects that home insurance premiums in the state will rise by 21% this year, even in areas far removed from wildfire zones. That’s a much sharper increase than what was expected at the start of the year.
And it’s not just California. Insurify forecasts premium increases in all 50 states, with the national average climbing about 8%. Louisiana is expected to see the biggest jump at 28%. Even states like Iowa, Minnesota, and Colorado are experiencing double-digit hikes, driven by everything from wildfires and floods to hailstorms and other severe weather.
Although insurance premiums are regulated at the state level, the effects of a major disaster are often felt across the country. Many insurers are national companies, and if they take significant losses in one region, they may raise rates elsewhere or pull back from certain markets to rebalance risk.
The variation in premiums is significant. Florida leads the nation with an average annual premium of $15,460. Vermont has the lowest at $1,248, despite recent flood-related losses. California’s projected average premium of $2,930 is still below the national median of $3,520.
These rising costs don’t just affect homeowners—they influence the broader economy and the real estate market. High insurance premiums are becoming a bigger piece of the monthly housing budget and are starting to impact affordability, especially in high-risk areas.
In California, the worst of the wildfire crisis may be behind us, but more rate increases are likely on the way. State Farm, the state’s largest home insurer, dropped thousands of policyholders earlier this year and was recently approved for a 17% emergency rate increase. The company is also seeking another 13% increase on top of that.
Some smaller carriers and non-admitted insurance firms are still offering coverage, and for many homeowners, simply being able to renew a policy is a relief.
Rising insurance premiums are becoming an important—and often overlooked—factor in buying or selling a home. If you’re thinking about making a move, investing, or just want help understanding how insurance trends might impact your property decisions, I’m here to help you navigate it with clarity and confidence!
