If you’ve opened your homeowners insurance renewal notices lately and felt your jaw drop, you’re not alone. Homeowners Insurance Premiums are Steadily Increasing and according to LendingTree’s latest data, the average premium has increased about 40% in the past six years.
Homeowners insurance rates increased by 11.4% in 2024 compared to the 5.4% increase in 2022. This now makes the average annual cost of homeowners insurance to be $2,801. In 2019, the average annual cost of homeowners insurance was $1,989. That’s an average increase of $800, nationwide.
So, why is this happening? A major factor is that insurance companies in many states are paying out more in claims than they are collecting in premiums. From natural disasters to inflation in construction and repair costs, the financial strain on insurers has grown. To stay financially stable and continue offering coverage, they’ve had to raise rates significantly.
These challenges are affecting millions across the country and there is no sign of slowing down in sight. For current homeowners, this can put pressure on monthly budgets. For potential home buyers, it adds another layer of cost to consider when calculating affordability. The bottom line is that homeowners insurance is becoming increasingly unpredictable. While you aren’t able to control the market you can take the steps to better protect yourself.
With the right guidance, planning, and the right coverage, you can protect what matters the most. Be proactive, and don’t hesitate to reach out to Coalter Insurance Group with any questions that may arise. We are in your corner, and we’d be happy to help!