Homeowners Insurance Rates Surge in 95% of ZIP Codes Nationwide

If homeowners insurance feels more expensive, it’s not just in your head.

According to a new report from the Consumer Federation of America (CFA), homeowners insurance premiums jumped in 95% of ZIP codes nationwide between 2021 and 2024.

The average homeowners insurance policy, according to the same report, rose by $648 per year.

Some blame inflation. Others blame supply chain issues. According to experts, however, the biggest contributor is severe weather.

Here’s how Abe Scarr with Public Interest Research Group (PIRG) explained the issue at a recent CFA event, as reported by 12 On Your Side:

…the biggest contributor to catastrophe losses for the insurance companies is actually from wind and hail, not from these wildfires or hurricanes…so we’re seeing big increases across the country in homeowners’ insurance.

While severe weather is the biggest factor, other factors are also contributing to the issue – from inflation and supply chain issues to state-level regulatory hurdles.

More Insurers Are Also “Dropping Coverage Without Notice”

Consumers aren’t just paying higher prices; they’re also struggling to find homeowners insurance at all.

According to Abe Scarr of the PIRG, more insurance companies are dropping coverage with no warning:

We’re also seeing a big increase in insurers dropping coverage without notice.

Some homeowners have been with an insurer for years, only to suddenly get “dropped for no reason” when it’s time to renew, according to Scarr.

Average American is Paying 24% More for Homeowners Insurance

Earlier this year, the Consumer Federation of America (CFA) published a report showing that the average homeowner in the United States paid 24% more for homeowners insurance in 2024 compared to 2021.

In other words, homeowners insurance rose 24% over three years – twice as fast as inflation. That’s a $21 billion price hike on American homeowners.

Other findings of the report include:

• The average homeowner in 2024 paid $3,303 per year for homeowners insurance, which is $648 higher than the 2021 average
• Premiums increased in 95% of US ZIP codes.
• Roughly one-third of ZIP codes experienced a rise of 30% or more.
• Some states were hit harder than others. Homeowners in Utah saw a 59% jump in premiums, on average, for example. Illinois (50%), Arizona (48%), and Pennsylvania (44%) were also hit hard.
• The report found that the five most expensive states for homeowners insurance were Florida, Louisiana, Oklahoma, Kentucky, and Nebraska.

What Comes Next?

Policymakers are being urged to take action over rising homeowners insurance rates.

Higher homeowners insurance rates are putting homeownership out of reach. They’re crushing household budgets at a time when everything – from groceries to healthcare – feels more expensive.

What comes next? The Consumer Federation of America is calling for a series of changes in a report called Overburdened: The Dramatic Increase in Homeowners Insurance Premiums and its Impacts on American Homeowners, released earlier this year.

The CFA is urging lawmakers and regulators to pass rules requiring insurers to publicly disclose all transactions with consumers – similar to the data reporting requirements for mortgage applications. Since 1975, mortgage lenders have been required to report mortgage data each year under the Home Mortgage Disclosure Act (HMDA), but insurers have been exempt from similar requirements.

Last year, the National Association of Insurance Commissioners (NAIC) collected limited data about homeowners insurance premiums. Making things less transparent, the Federal Insurance Office (FIO) has only publicly released some of that data.

The CFA recommended several insurance reforms and investments to address the converging issues of housing, climate change, and property insurance.

Specifically, the CFA is calling for investments in loss prevention, risk mitigation, and resilience. Making homes more resilient today, for example, could prevent insurance losses in the future.

The CFA also urges the creation of a federal reinsurance backstop to address the high costs of reinsurance, which is “insurance for insurance companies.” Currently, reinsurance is sold on an unregulated global marketplace, making it hard for insurers to get extra protection.

The CFA plans to work with state partners nationwide to break down data in its report and propose specific policy changes. Stay tuned for what comes next.

Feeling overburdened by the cost of your homeowners insurance policy?

Contact ClaimsMate for a no-cost consultation. A licensed public adjuster can review your claim and policy to ensure your insurer is treating you fairly.