Average homeowners insurance premiums have increased significantly across the United States over the past several years, outpacing the overall inflation rate by substantial margins. According to a comprehensive analysis released by the National Association of Insurance Commissioners, consumers experienced premium increases of 18% in the Northeast, 25% in the Midwest, 27% in the Southeast, and 43% in the West from 2018 to 2024, when adjusted for inflation. Regional variations in 2024 showed the Southeast with the highest average annual premiums at $1,818, while the Northeast had the lowest at $1,396. The upward trend has continued, with premiums rising an additional 7% since early 2025.
The combination of rising insurance costs and broader affordability challenges has created significant strain on homeowners. According to the National Association of Realtors, overall home affordability has declined approximately 10% compared to what it would be if insurance costs had remained stable since the late 1990s. Lower-income households face particular hardship, as they are more likely to forgo coverage entirely, placing their largest financial asset at risk during disasters. Industry experts note that this affordability crisis could have broader economic implications, potentially dampening the housing market and affecting consumer behavior across the economy.
Insurers are simultaneously withdrawing from the market at elevated rates, choosing not to renew policies when they determine the associated risk outweighs potential profits. Nonrenewal rates per 1,000 active policies have climbed significantly since 2018, ranging from 96% increases in the Southeast to 216% in the West. As of 2024, approximately 103 million homeowners insurance policies remained in force across the nation.
Multiple factors drive the escalating costs and market pressure. Climate change and increasingly severe weather events—including wildfires, hurricanes, and severe storms—have elevated the financial risk for insurers substantially. The number of weather and climate disasters causing over $1 billion in damage increased more than fivefold between 2018 and 2022 compared to the 1980s, after adjusting for inflation. Beyond climate risks, construction and rebuilding costs have climbed sharply, with replacement costs for property and casualty losses increasing 45% on average between 2020 and 2023. These cost pressures have contributed to the widespread rate increases passed along to consumers.
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