Report: Typical Homeowner’s Insurance Premium Up 24% Since 2021

The typical homeowner’s annual insurance premium recorded an average increase of 24% from 2021 to 2024, according to a new report from the Consumer Federation of America. In comparison, the cumulative inflation increase over the same period was 13%.

“From 2021 to 2024 annual homeowners insurance premiums increased by an average of $648 nationwide,” said the report, which observed that “insurance companies quoted the typical homeowner in the United States an average premium of $2,656 per year (or $221 per month) in 2021. By 2024, that number increased to an average of $3,303 (or $275 per month). These quotes are for homeowners with a mid-range credit score and a $350,000 replacement value policy.”

The report, titled “Overburdened: The Dramatic Increase in Homeowners Insurance Premiums and its Impacts on American Homeowners,” found that insurance companies increased premiums in 95% of ZIP codes between 2021 to 2024, with nearly all homeowners experiencing price hikes. Consumers in one-third of ZIP codes saw their premiums rise by more than 30%.

The states with the greatest percentage increase in premiums were Utah (59%), Illinois (50%), Arizona (48%), and Pennsylvania (44%). The states with the greatest premium hikes in absolute dollars were Florida ($2,118 increase), Louisiana ($1,775), and Kentucky ($1,426). Florida was the most expensive state to buy homeowners insurance – by 2024, a typical homeowner in the Sunshine State with a mid-range credit score and a $350,000 replacement value home was paying $9,462 per year for insurance, or $789 dollars per month.

The only states during this time where premiums declined during this time were Mississippi with a 15% tumble and West Virginia with a 24% drop. However, the report also determined that homeowners nationwide in rural areas saw their premiums rise 22% during this time – annual premiums in rural ZIP codes were $3,317 on average in 2024, compared to $3,299 in urban and suburban areas.

The report acknowledged there was no easy solution for lowering premiums.

“Sustainable homeownership in the United States has always been heavily supported by public policy,” the report concluded. “To support Americans’ ability to stay and become homeowners, the US not only needs a well-regulated and inclusive economy and a safe and sound housing finance system, but also an accessible, fair, and affordable insurance marketplace. As homeowners insurance increasingly shapes the financial lives of homeowners today, it has become a much more significant part of housing policy than ever before. It is critical for policymakers to focus on homeowners insurance markets, their regulation, and the drivers of its escalating cost.”