Homeowners insurance costs have increased substantially across the United States over the past several years, outpacing inflation in all major regions, according to a report released by the National Association of Insurance Commissioners. Regional premium increases from 2018 to 2024 ranged from 18 percent in the Northeast to 43 percent in the West when adjusted for inflation. Average annual premiums in 2024 were lowest in the Northeast at $1,396 and highest in the Southeast at $1,818. Since the start of 2025, premiums have risen an additional 7 percent, based on producer price index data.
The rising costs present challenges for homeowners already facing broader affordability pressures. Insurance experts note that the expense disproportionately affects low-income households, who may abandon coverage altogether and risk losing their primary asset. According to the National Association of Realtors, homeownership affordability is approximately 10 percent lower than it would be if insurance costs had remained stable since the late 1990s. A Pew Research Center poll found that 42 percent of homeowners reported their costs had increased significantly in recent years.
Insurers are also withdrawing from the market at elevated rates, declining to renew policies when terms expire. Nonrenewal rates have increased between 96 and 216 percent depending on region since 2018. Approximately 103 million homeowners insurance policies were in force in 2024. Industry analysts describe the market as operationally sound but exhibiting signs of stress.
Multiple factors are driving the premium increases. Climate change has intensified severe weather events including wildfires, hurricanes, and floods, increasing claim frequency and severity. Between 2018 and 2022, weather and climate disasters causing over $1 billion in damage increased more than fivefold compared to the 1980s. Additionally, inflation has raised reconstruction and repair costs, with replacement expenses for property losses increasing 45 percent on average between 2020 and 2023. These combined pressures have compelled insurers to pass financial burdens to consumers or exit certain markets entirely.
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