Report: Home Insurance Rates to Rise 6% in 2024 After 20% Increase in Last Two Years

Nearly 30% of American homeowners are nervous about rising home insurance rates. According to Insurify’s projections, increases will continue through 2024, as high as 23% in states with severe weather.

Cassie Sheets
Written byCassie Sheets
Cassie Sheets
Cassie SheetsData Journalist
  • 9 years writing data-driven content

  • Lifestyle contributor to 30+ local news sites

Cassie Sheets has a background in home and garden and real estate content. At Insurify, she translates industry jargon into insights that empower insurance buyers.

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Tanveen Vohra
Edited byTanveen Vohra
Tanveen Vohra
Tanveen VohraManager of Content and Communications
  • Property and casualty insurance specialist

  • 4+ years creating insurance content

Tanveen manages Insurify's data insights, annual home and auto insurance reports, and media communications. She’s regularly featured in media interviews on insurance topics.

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Andrew Huang
Data reviewed byAndrew Huang
Headshot of Andrew Huang, Directory of Analytics at Insurify
Andrew HuangVice President, Performance Marketing
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Home insurance rates are rising, influenced by climate catastrophes and inflation, leaving homeowners uncertain about future expenses. The average annual rate increased by 19.8% between 2021 and 2023, from $1,984 to $2,377. 

Insurify projects a 6% increase in 2024, placing rates at $2,522 by the end of the year. Early weather forecasts predict a devastating hurricane season, which would cause further rate increases in 2025.

To identify the states most affected by rising rates, Insurify’s data science team analyzed homeowners insurance costs in every state and projected rate increases based on historical pricing and local factors.

An Insurify survey of American homeowners reveals how rising insurance costs affected their finances and attitudes toward homeownership. With costs projected to rise an additional 6% in 2024, experts weigh in on the best ways to navigate rate hikes.

Key Takeaways

  • Florida homeowners pay the most for home insurance, with an average annual rate of $10,996 in 2023. Insurify predicts costs will increase an additional 7% in 2024 to $11,759.

  • Louisiana pays the second-highest home insurance rate, at $6,354 annually. The state will see the greatest increase in 2024, with a projected 23% hike, bringing the average rate to $7,809. 

  • Six of the 10 most expensive cities for homeowners insurance are in Florida.

  • Sixty percent of homeowners don’t carry separate flood insurance, and 13% erroneously believed their standard home insurance policy included it.

  • Gen X is the least likely to think climate change has affected their home values, with 70% saying it hasn’t in an Insurify survey. Millennials are most likely to say it has (32%), and Gen Z is the most unsure, with 17% saying they don’t know if it has.

How much home insurance costs by state in 2024

Home insurance costs vary widely by state. Vermont residents pay the least, with an average annual rate of $918 compared to $10,996 in Florida. Here’s how much homeowners pay across the country.

StateAverage Annual Rate (2023)Projected Annual Rate (2024)Projected Change in 2024
United States$2,377$2,5226%
New Hampshire$1,225$1,2593%
New Jersey$1,267$1,3234%
New Mexico$3,362$3,5546%
New York$2,257$2,4046%
North Carolina$2,110$2,32710%
North Dakota$2,519$2,5170%
Rhode Island$2,036$2,1516%
South Carolina$3,082$3,41011%
South Dakota$2,562$2,488-3%
Washington, D.C.$1,203$1,2766%
West Virginia$1,392$1,3980%

These states have the highest home insurance rates in 2024

The states with the highest home insurance costs are prone to severe weather events. Florida, Louisiana, Texas, Arkansas, and Mississippi are vulnerable to hurricanes. Texas, Colorado, and Nebraska face a growing wildfire risk. Nebraska, Texas, and Kansas are at high risk for tornadoes, being located in an area nicknamed Tornado Alley.

StateAverage Annual Rate (2023)Projected Average Annual Rate (2024)Difference in State vs. U.S. Average (2023)

Homeowners insurance rates are rising fastest in these states

Insurify’s data science team projects home insurance rates will increase 6% across the country in 2024, but homeowners in some states are feeling the burden of rising costs more than others.

StateAverage Annual Rate (2023)Projected Average Annual Rate (2024)Projected Increase (2024)% of Insurers With Rate Increases
South Carolina$3,082$3,41011%35%
North Carolina$2,110$2,32710%19%

In Louisiana, where rates are nearly three times the national average, home insurance costs could rise an additional 23% in 2024, pushing the average premium above $7,800.

Severe weather risks have long influenced rates in Louisiana, but the effects of climate change are catching up to states with historically lower-than-average rates, like Maine. The Maine Climate Council projects a 1.5-foot relative sea level rise (SLR) by 2050. Coastal storm impacts will increase 10 times in frequency with just one foot of SLR.

North Carolina and South Carolina homes see similar destruction from hurricanes, severe storms, and flooding. Multiple coastal counties in both states are at a “Relatively High” risk of natural disasters, according to FEMA’s National Risk Index. Western states, including Utah, Montana, and Nevada, face a growing wildfire risk.

Rising building repair costs also contributed to rate increases. Connecticut saw year-over-year residential reconstruction costs increase by 4.1%, according to Verisk’s Q1 2024 360Value Quarterly Reconstruction Cost Analysis. Rebuild costs in Michigan and Illinois went up more, with yearly increases between 5.6% and 6.4%.

Florida home insurance rates skyrocketed to $11K per year

The average home insurance rate in Florida was $10,996 in 2023. Insurify’s data science team predicts an additional 7% increase this year, making the projected average rate $11,759 by the end of 2024.

Nine in 10 (91%) Florida residents are concerned with current homeowners insurance rates, and 59% believe their personal finances are worse than a year ago, according to a November 2023 poll by independent polling company Cygnal.

“Everybody is concerned about it,” said Désirée Ávila, a South Florida REALTOR® who works in Broward County and the surrounding areas. “Because of all the storms and hurricanes and weather events that happen here in South Florida, we’ve just seen, over the past years, homeowners insurance go up a lot.”

Costly natural disasters drive up rates and make it difficult for insurers to maintain profitability in Florida, but multiple factors fuel the state’s insurance industry crisis.

Florida’s home insurance crisis

The insurance crisis in Florida has escalated over the past several years. More than a dozen home insurance companies have declared insolvency since 2019. Farmers Insurance stopped covering Florida, and major insurers have non-renewed policies for high-risk homes.

Hurricane Ian further propelled the insurer exodus, causing $112.9 billion in damage — $109.5 billion in Florida. The 2022 hurricane was the third costliest to hit the U.S. and the most destructive in Florida’s history, according to the National Oceanic and Atmospheric Administration (NOAA).

When insurers can’t cover the cost of natural disasters, reinsurance steps in. Reinsurance, essentially insurance for insurers, is a significant factor in the Florida home insurance crisis.

“Insurers rely on reinsurance coverage to cede some exposure to losses,” said Betsy Stella, vice president of carrier management and operations at Insurify. “Reinsurance coverage has become difficult to secure in Florida, and reinsurance rates have skyrocketed. Reinsurers are subject to the same factors that impact underlying coverages: an increased number and severity of natural disasters, inflationary pressures, and labor and materials shortages.”

Insurance fraud and legal system abuse also contribute to high rates in Florida, an Insurance Information Institute (Triple-I) brief reported. The state’s residents make 9% of all homeowners insurance claims in the U.S. but account for 79% of lawsuits over claims filed, according to the Florida Office of Insurance Regulation (OIR).

The Florida legislature has introduced measures combatting two major factors behind the insurance crisis — legal system abuse and misuse of assignment of benefits (AOB). Some new legislation, including Senate Bill 7052, increases consumer protections.

Recent proposals have suggested tying home insurance balances to unpaid mortgages, allowing homeowners to buy insurance policies that match the unpaid mortgage principal rather than the home’s replacement cost value. Nearly 64% of American homeowners in the Insurify survey said they would consider it for lower rates.

While the idea could lower premiums, homeowners would be vulnerable to life-changing financial losses. For instance, if someone insures a $300,000 home for a remaining principal of $150,000, they take on the risk of being unable to rebuild the home if a natural disaster causes more than $150,000 in damage.

How Florida’s last-resort insurer became the first (or only) choice

Despite recent reforms, finding private homeowners insurance is so difficult in Florida that the state-run Citizens Property Insurance Corp. is now the largest insurer in the state.

“Citizens used to be the insurance company of last resort. But there are so few insurance companies that insure in Florida, and they have so many requirements that when they do, it almost makes the cost of having them as your insurer insane,” said Ávila.

State legislators recently approved a bill expanding Citizens to homes valued at more than $700,000, but not all homeowners are eligible. The state-run insurer can drop policyholders who find comparable coverage from a private insurer as long as the new premium isn’t more than 20% higher than renewing with Citizens.

Under another proposed bipartisan solution, Citizens would cover hurricane damages, rather than private for-profit insurers. The model resembles the federally subsidized National Flood Insurance Program (NFIP) or the California Earthquake Authority.

Citizens president and CEO Tim Cerio warned that taking on Florida’s hurricane risk could make it challenging to acquire reinsurance. The state-run insurer’s operating loss was more than $2.4 million in 2022 — a loss increase of nearly $2.3 million compared to 2021. Hurricanes Ian, Irma, Sally, and Eta contributed most significantly to the loss, according to an independent audit.

Ávila, who “had to fight, and fight, and fight” to get Citizens to cover her mother’s roof repair in 2005, is skeptical of expanding Citizens as a long-term solution. She hasn’t seen improvements in the insurance industry from legislative changes, either.

“Legislators are supposed to protect the consumer, but where are they?” said Ávila. “I kind of feel like they’re not doing anything, and it’s just making it prohibitive to live here.”

Cities with the most expensive homeowners insurance in 2024

Six of the 10 most expensive cities for homeowners insurance are on the South Florida coast, and all have average annual rates above $11,000. Five of the six Florida cities have a “Very High” risk of natural hazards, according to FEMA’s National Risk Index.

Outliers may skew steep rates in South Florida’s coastal cities, with large, expensive properties pushing up the average, says Ávila. But it’s not unusual for the middle-income homebuyers she works with to have annual premiums of about $5,000 to $6,000 in Broward County.

“When adding that to a mortgage payment, that’s an additional $500 a month. And it could be less, or it could be more,” said Ávila. “If your house has a newer roof, impact windows, or impact doors, the insurance company will give you a discount.”

The Louisiana and Mississippi cities among the 10 most expensive for home insurance are also near the water and mostly have “Relatively High” FEMA risk ratings.

CityAverage Annual Premium (2023)Projected Annual Premium (2024)FEMA Risk Rating
Hialeah, FL$17,606$18,252Very High
Miami, FL$16,717$16,886Very High
Fort Lauderdale, FL$15,484$16,112Very High
Hollywood, FL$13,834$14,115Very High
West Palm Beach, FL$13,123$13,501Very High
Port Saint Lucie, FL$11,897$12,199Relatively High
Kenner, LA$10,204$11,108Relatively High
New Orleans, LA$9,780$10,687Relatively High
Ocean Springs, MS$9,428$9,355Relatively High
Thibodaux, LA$7,763$8,603Relatively Moderate

Severe weather is driving home insurance rate hikes

Climate change increases the frequency and intensity of severe weather events, causing costly damages and reducing insurance affordability, according to the Environmental Protection Agency (EPA).

Texas experienced $400 billion in damages and ranked fourth for home insurance costs in 2023. While Florida experienced less damage — at $390 billion — it has the most expensive premiums. Louisiana is also of note, with the second-highest rates and the third-highest cost of damages, at $310 billion.

Wildfires are a growing concern, especially in Texas and the Western United States. Damage from wildfires costs the U.S. an estimated $147.5 billion annually, according to a 2023 congressional report.

But without the financial backing of reinsurance, more insurers may leave wildfire-prone states. Under the Fair Access to Insurance Requirements (FAIR) Plan, a state-run high-risk pool that provides fire insurance, California’s reinsurance cost was 60% higher than the maximum approved premium in 2023, a First Street Foundation report found.

As insurers halted new business in unprofitable, high-risk areas, the number of available home insurance policies decreased by 35% in 2023. Customers who renewed policies with the same insurer saw an average rate increase of 23.7% in 2023 compared to 10% to 12% in previous years, according to Matic.

The forecasting company Weather Bell predicted a “hurricane season from hell,” projecting six to eight major hurricanes (out of 14 to 16 total hurricanes) to touch down in the U.S. in 2024.

“A ‘hurricane season from hell’ could pile crisis upon crisis,” said Stella. “The financial solvency of all insurance companies will be tested. Perhaps especially newer providers who have stepped into the market recently. Citizens [Florida’s insurer of last resort], too, will be tested.”

Policyholders won’t see rate changes immediately, according to Stella. Insurance companies reassess rates based on anticipated payouts, file for increases, and get the necessary approval from state regulators before raising premiums. Since most homeowners policies have a 12-month term, policyholders may not see price hikes for as many as 18 to 24 months.

“Storms don’t need to make national headlines to wreak havoc on a home,” said Dr. Ian Giammanco, managing director of standards and data analytics for the Insurance Institute for Business & Home Safety (IBHS). The IBHS Research Center focuses on improving building standards and fortifying homes against severe weather and natural catastrophes.

“In 2023, the U.S. had more than 1,750 reports of 2-inch or larger hail and 19 severe thunderstorm outbreaks, compared to only two landfalling tropical cyclones. These severe convective storms resulted in record-breaking insured losses in excess of $50 billion, with hail damage accounting for a large percentage,” said Giammanco. “Fort Collins, Colorado, remains the only city in the United States with a hail provision in its building code.”

One-fourth of U.S. homeowners say climate change hurts their home value

The majority of American homeowners (60%) say they don’t feel climate change has affected the value of their homes — but 25% say they do.

Among homeowners who have filed a claim, 40% say climate change has affected their home’s value. Gen Z (29%) and Millennials (32%) are also more likely than Gen X (14%) to say it has. Generational differences could be due to participants’ overall views on climate change.

Americans between ages 18 and 29 are most likely to say human activities, such as burning fossil fuels, contribute to climate change a great deal, a 2023 Pew Research survey found. The number drops from 59% between ages 18 and 29 to 49% between ages 30 and 48, and 38% of those aged 50 and older.

As more Gen Z homebuyers enter the housing market, areas with high climate resiliency may become more desirable than states more affected by climate change.

Has Climate Change Affected Home Value?OverallGen ZMillennialsGen X
Not Sure15%17%15%15%
*Percentages are rounded to the nearest whole number, so the sum of all answers may not equal 100%.

Most skip flood insurance, and 22% of Gen Z doesn’t know how it works

Flooding frequency has increased dramatically across the U.S. coastline as sea levels rise, according to the EPA. Damages from flooding events across the country totaled $7 billion in 2023, NOAA data shows.

But standard homeowners insurance doesn’t pay for flood damage, and most homeowners aren’t covered.

Water or flood damage (20%) was the most common reason homeowners filed a claim, but 60% said they don’t carry separate flood insurance in a February 2024 Insurify survey. An additional 13% said they thought their regular home insurance would cover floods.

Gen Z homeowners are more likely than other generations to believe their home insurance covers floods (22%). But they’re also the most likely to have flood insurance, with 32% carrying a separate policy compared to 30% of millennials and 18% of Gen X.

“Covering water damage on a traditional home policy can be confusing,” said Buddy Parkhurst, a licensed insurance agent at Insurify.

“Damages from outside waters coming into the home will only be covered by a flood policy. If it’s wind-driven rain damage, this will be covered on your home policy. Water damages that are covered automatically typically include a burst pipe from freezing or an appliance malfunction like your water heater, washer, or dishwasher.”

In other cases, including hidden water damage from pipes in the walls or backup from your sump or sewer, your insurer may require an additional endorsement on your policy, says Parkhurst. “Even foundation water damage can be endorsed.”

As flood frequency increases, homeowners without coverage are more vulnerable to unexpected financial losses. Homeowners can purchase flood insurance through the FEMA-managed NFIP or a private company

Rate hikes: Gen X is angry, millennials are just grateful to have insurance, and Gen Z is nervous

Homeowners have different reactions to rate increases depending on their age. Gen Z was most likely to report feeling nervous about the future due to rising home insurance rates.

Millennials, many of whom graduated from high school or college during the Great Recession in 2008, were most likely to say they were just happy to have insurance in response to rising rates.

Nearly 33% of Gen X, on the other hand, are angry that they have to pay more. Gen X write-in survey responses included concerns that state insurance oversight may not function as intended and feeling frustrated about high rates while finding it difficult to get insurers to cover claims.

How homeowners can prepare for an uncertain future

Many homeowners are financially strained, with 21% reporting they can’t afford their current mortgage rate for long and 9% saying they can’t afford it now. Rising insurance costs add to the burden. States with a high risk of natural disasters, like Florida and Louisiana, see the steepest rate increases and face a narrowing home insurance market.

Homeowners can prepare for potential damage by checking flood and wildfire zone maps from FEMA and the National Weather Service. In wildfire zones, installing home-hardening features can mitigate wildfire damage. Dual-pane windows with a tempered glass layer can withstand fire-induced breakage, and non-flammable sidings like stucco or fiber cement reduce damage.

In hurricane-prone areas, approved impact windows or hurricane shutters can protect against flying debris. Homeowners can also adhere to the IBHS-recommended FORTIFIED Roof standard — construction and re-roofing requirements that prevent damage — and choose a garage door rated for wind speeds above 130 mph, says Giammanco.

“FORTIFIED Roof was specifically designed to prevent damage that commonly occurs during high winds, hurricanes, hailstorms, severe thunderstorms, and even tornadoes up to EF-2. … An IBHS study of tornado damage found less than 10% of homes had roof structural damage when the garage door remained intact.”

Storm-resistant features are an up-front investment, but some insurers offer discounts for these upgrades. These features can also attract buyers when homeowners are ready to sell, says Ávila. “[Homebuyers] do like that because putting them in takes permits, time, and money. So if they can buy a house with it already in, it’s a big plus.”

Finding affordable home insurance in disaster-prone states can be difficult, but many homeowners find a lower rate by comparing quotes from multiple insurers. As climate catastrophes affect more of the U.S., homeowners could have fewer insurance options in the future. “It’s possible that the highest-risk areas will become uninsurable,” said Stella. “However, where there’s demand, typically a supplier will appear. The question will be, at what cost?”


Insurify data scientists turned to their real-time database of insurance quotes from partner carriers, as well as aggregated rate filings from Quadrant Information Services, to determine the state of home insurance in 2024.

Unless otherwise stated, rates in this report represent the average annual cost of an HO-3 insurance policy for homeowners with good credit and zero claims within the past five years covering a single-family, frame house with the following coverage limits: $300,000 dwelling, $300,000 liability, $25,000 personal property, $30,000 loss of use, and a $1,000 deductible.

Insurify gathered Quadrant rates in representative ZIP codes in the 10 largest cities in every state. Statewide costs reflect the average rate for homeowners across these ZIP codes.

The 2024 prices reflect rates as of Feb. 15, 2024. To project how much the average homeowner will pay in insurance by the end of 2024, Insurify data scientists first analyzed how often and by how much insurance companies implemented rate increases throughout the second half of 2023 and into 2024. They then used this information to project rate change frequency and magnitude in every state through the end of the year.

Survey results come from an Insurify survey of more than 700 homeowners with active home insurance policies conducted in February 2024. In this survey, Gen Z included ages 22–27, millennials accounted for ages 28–43, and Gen X spanned ages 44–59.

Cassie Sheets
Cassie SheetsData Journalist

Cassie Sheets has more than nine years of experience creating compelling content for clients, brands, and local news sites. She started her career at Movoto Real Estate, where she transformed dry data into interesting insights for potential homebuyers. She’s since covered a wide range of topics, from pop culture news to home and garden trends.

Before joining Insurify, Cassie wrote engaging landing pages and blog posts for medical practices at MyAdvice. Now, she uses her knack for diving into the latest data and pulling out key details to empower insurance buyers.

Cassie holds a BFA in Creative Writing from Columbia College Chicago. In her free time, you can find her exploring the city with her dog, trying not to fall over in yoga classes, and petting cats at the shelter.

Tanveen Vohra
Edited byTanveen VohraManager of Content and Communications
Tanveen Vohra
Tanveen VohraManager of Content and Communications
  • Property and casualty insurance specialist

  • 4+ years creating insurance content

Tanveen manages Insurify's data insights, annual home and auto insurance reports, and media communications. She’s regularly featured in media interviews on insurance topics.

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Andrew Huang
Data reviewed byAndrew HuangVice President, Performance Marketing
Headshot of Andrew Huang, Directory of Analytics at Insurify
Andrew HuangVice President, Performance Marketing
  • Chartered financial analyst

  • 12+ years in data analysis and marketing

Andrew applies his vast knowledge of analytics and insurance industry trends to help inform Insurify’s content and marketing efforts.

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