Homeowners Insurance Rates Have Risen 50% in Some States

Insurance premiums have increased sharply over the last five years. Some states, however, are feeling the increase more than others.

According to an April 2025 report by the Consumer Federation of America, the average homeowners insurance premium in the United States rose from $2,656 per year in 2021 to $3,303 at the end of 2024 – an average increase of around 24% nationwide.

The top 10 hardest-hit states, however, have seen insurance rates rise 30% or more, with some states experiencing a 50% rise.

Utah and Illinois, for example, faced the highest rises of any states. Homeowners in Utah are paying 59% more for homeowners insurance today than they did in 2021, while homeowners in Illinois are paying 50% higher rates.

Other states with sharp increases included Arizona (40%), Pennsylvania (44%), Nebraska (35%), Kentucky (35%), Louisiana (34%), Arkansas (34%), South Dakota (32%), and Minnesota (32%).

The Average American is Paying 24% More for Homeowners Insurance

The Consumer Federation of America tracked data from 100 insurance companies nationwide. That data was collected by Quadrant Information Services.

Here’s how the survey worked:

• Data was collected from 100 insurance companies across the United States
• Quadrant collected data from nearly every ZIP code in the United States.
• The company requested a homeowners insurance quote for an average homeowner with a mid-range credit score and a $350,000 replacement value insurance policy.
• After crunching the numbers, researchers found double-digit increases in 40 states – and declines in only two states (one state, Wyoming, reported no change in insurance premiums). The remaining states experienced a rise of 3% to 7%.

Analysts attributed the rise to a higher risk of severe weather, rising inflation, a costlier reinsurance market, and a lack of pushback from state regulators.

Top 10 States with the Largest Premium Increase

10 states are paying at least 30% higher rates for homeowners insurance than they did in 2021, including:

1. Utah: +59%
2. Illinois: +50%
3. Arizona: +48%
4. Pennsylvania: +44%
5. Nebraska: +35%
6. Kentucky: +35%
7. Louisiana: +34%
8. Arkansas: +34%
9. South Dakota: +32%
10. Minnesota: +32%

Top 10 States with the Lowest Premium Increase

Homeowners in two states are paying lower insurance premiums, on average, than what they paid in 2021. One state remained stagnant, while seven others reported single-digit increases:

1. West Virginia: -24%
2. Mississippi: -15%
3. Wyoming: 0%
4. Alaska: +3%
5. Idaho: +4%
6. Vermont: +5%
7. Tennessee: +6%
8. New Hampshire: +7%
9. Washington: +7%
10. Alabama: +7%

The District of Columbia also reported a lower-than-average rise in homeowners insurance premiums, rising 6% between 2021 and 2024.

Most Expensive States for Homeowners Insurance

Homeowners in some regions pay double – or even triple or quadruple – the average national rate for homeowners insurance.

In fact, even with 30% increases or higher, most of the fastest-rising states above don’t even make the list of the most expensive states for homeowners insurance.

Rates rose 59% in Utah, for example, but the state continues to have cheaper-than-average homeowners insurance premiums. The average Utah homeowner pays around $1,300 per year for homeowners insurance, making it one of the top 15 cheapest states to insure a home.

According to Bankrate, here are the top 10 states in America with the costliest insurance premiums in 2025:

1. Nebraska: $6,030
2. Florida: $5,292
3. Kansas: $4,664
4. Oklahoma: $4,563
5. Louisiana: $4,135
6. Texas: $4,049
7. Kentucky: $3,515
8. Mississippi: $3,450
9. Colorado: $3,194
10. Arkansas: $3,155

The rates above assume $300,000 in dwelling coverage, averaged across multiple parts of the state.

Out of the five states with the fastest-rising insurance rates, only one (Nebraska) made the list above. The others (Utah, Illinois, Arizona, and Pennsylvania) experienced sharp rises in insurance premiums but remain well below the national average.

What’s Causing Rising Rates?

Several factors contributed to the rise of homeowners insurance premiums since 2021.

According to the Consumer Federation of America’s report, some of the biggest factors leading to rising rates included:

• Climate change, including severe wildfires, flooding, and other weather events
• Inflation, leading to increased costs of labor and materials, which make it more expensive to build or repair a property after a covered loss
• Tight reinsurance market, making it harder and more expensive for insurers to spread risk around, forcing them to transfer risk to consumers as higher rates
• Limited regulatory oversight, allowing insurers to raise rates with limited restrictions because of lax regulations from state insurance commissioners

Despite the rising rates, insurers in some states continue to press for higher premiums. State Farm recently asked California for permission to raise rates by 22% in response to the January 2025 Los Angeles County fires, and California’s Department of Insurance approved it.

Tariff-Driven Inflation Could Raise Rates Further

Experts expect tariff-driven inflation to raise premiums even further.

As reported by Insurify, tariffs “could raise home insurance costs up to 38% faster,” leading to an 11% rise in insurance premiums by the end of 2025.

Tariffs have taken effect at various stages throughout 2025, which means they were not priced into the market by the time 2024’s statistics were released.

Insurify attributes part of this rise to tariffs, which are expected to increase the cost of home-building materials:

• The United States imported $14 billion worth of residential construction materials in 2024. A significant portion of those imports could face tariffs. Home builders use Canadian lumber and Mexican lime and gypsum, for example.
• In fact, insurance companies and home builders already report paying more for materials. According to Insurify, 60% of builders have already reported paying higher prices to suppliers for the same components. Suppliers started raising rates for imported materials soon after tariffs were announced – not after tariffs were implemented.
• Citing those same builders, Insurify estimates an average cost increase of $10,900 per home attributable directly to tariffs.
• If that predicted rise is true, then the average homeowner’s rate would rise from $3,303 in 2024 to $3,666 by the end of 2025.
• Auto insurance rates are also expected to rise. Because automakers use more imported parts than home builders, auto insurance rates could rise anywhere from 20% to 30%, according to reports – despite already rising significantly in recent years.

If life feels more expensive today than ever, you’re not alone. With homeowners insurance premiums rising in every state but three, it’s harder to find adequate, affordable coverage for your property.