A new report from Insurify shows average US homeowner insurance premiums rose 12 percent last year to $2,948 annually, with a further 4 percent increase projected for this year. The hikes outpace inflation and stem mainly from climate-driven disasters and new construction in risky areas. Insured losses from natural catastrophes averaged $100 billion yearly from 2023 to 2025, far above the $15 billion a decade earlier.
The Insurify analysis highlights how frequent extreme weather events are pressuring insurers. 'When you have these big catastrophes, it’s not just that insurers have to pay out a lot of plans, it’s that they’re all happening fast,' said Matt Brannon, Insurify's senior economic analyst and report author. 'It creates extreme financial risk for insurers, and they tend to respond to this risk by raising their rates.' Prices are climbing nationwide, though some states face steeper rises due to specific risks like wildfires, hurricanes, hail, and storms. These do not include separate federal flood insurance plans. Insured catastrophe losses have surged, contributing to the trend. State-level data shows variation: California premiums increased 16 percent over the last two years and are set for another 16 percent hike this year amid ongoing wildfire issues. Georgia expects a 10 percent rise in 2026 after 9 percent in 2025, linked to Hurricane Helene, which killed 37, damaged thousands of homes, and cost agriculture and forestry $5.5 million. Illinois saw costs up 50 percent from 2021 to 2024; State Farm sought 27 percent increases, Allstate 9 percent, citing hail—the second-most after Texas. Governor JB Pritzker called it 'nothing short of a crisis.' Michigan premiums rose nearly 36 percent recently but are projected at 3 percent for 2026, due to storms since 2011. Nebraska jumped 25 percent last year from hail and winds. North Carolina approved 7.5 percent after a 42 percent request, with 5 percent forecast, complicated by flood exclusions and some claim denials post-Helene. Experts note adaptation like home hardening is key, but challenges persist with regulators balancing affordability and insurer viability.
