--- title: The Soaring Cost of Homeowners Insurance Just Broke Another Record description: Homeowners insurance costs are skyrocketing. Learn why premiums are rising and discover ways to save on your insurance. authors: - name: Adam Hardy role: Lead Data Reporter url: https://money.com/author/adam-hardy/ bio: Adam Hardy is a lead data journalist at Money, where he frequently reports on financial barriers that affect low-income Americans. Adam’s work has also appeared in Business Insider, Forbes, Nasdaq, The Penny Hoarder, Yahoo! Finance and more than a dozen local and regional newspapers. education: University of South Florida, BA, Magazine Journalism at_money_since: 2021 articles: 499 covers: - Insurance - Banking - Business - Career Advice - Credit - Credit Cards - Debt - Economy and Politics - Education - Health and Wellness - Housing - Identity Theft - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Pets - Professional Services - Retirement - Shopping - Taxes - Technology also_seen_in: - The Penny Hoarder - Forbes Advisor - Creative Loafing - The New York Times - The Washington Post - Bloomberg - Harvard Law School - The Federal Register - National Consumer Law Center - CBS News - Becker's Hospital Review - Business Insider - Mother Jones - The Week - Fortune - The Philadelphia Inquirer - National Association of Student Financial Aid Administrators (NAFSAA) - Education Advisory Board (EAB) - The Institute for College Access & Success (TICAS) - This Morning with Gordon Deal - Empower - Reddit social: - https://www.x.com/hardyjournalism - https://www.linkedin.com/in/hardyjournalism/ editors: - name: Katherine Peach role: Associate Editor url: https://money.com/author/katherine-peach/ bio: Katherine Peach is an associate editor with a focus on news and email at Money. She didn’t always intend to write about money. She’s a classically trained pianist who dreamed of becoming an archaeologist. However, in 2007 Katherine began working in financial publishing as an editor for Agora Inc. (Apparently, unearthing ideas about improving your personal finances isn’t such a bad career alternative!) Katherine’s writing and editing work has been featured in Investing Daily, Clever, Investor Junkie, The Palm Beach Letter, Truth & Plenty, Independence Monthly, NICHE, AmericanStyle, AntiqueWeek, Millennial Money, Money Done Right, TheStreet, Sure Dividend and many others. Katherine holds a Bachelor of Arts in Ancient Studies with concentrations in Archaeology and Ancient Languages and a minor in Literature from the University of Maryland, Baltimore County. She is a member of Phi Beta Kappa. education: University of Maryland, Baltimore County at_money_since: 2025 articles: 14 covers: - Insurance - Banking - Career Advice - Credit - Credit Cards - Debt - Economy and Politics - Education - Federal Reserve Rate Cuts - Health and Wellness - Housing - Identity Theft - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Professional Services - Retirement - Shopping - Taxes published: '2025-03-05T14:57:57.000Z' modified: '2025-04-15T23:09:01.000Z' section: Insurance tags: - News word_count: 536 canonical: https://money.com/cost-homeowners-insurance-broke-record/ type: NewsArticle source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![Photo illustration of a house inside a glass dome](https://img.money.com/2025/03/Insurance-Home-Cost-Up-Years.jpg) The cost of homeowners insurance is continuing its meteoric rise, according to a [new report](https://mortgagetech.ice.com/resources/data-reports/march-2025-mortgage-monitor) from financial data firm Intercontinental Exchange (ICE). Annual home insurance premiums rose by a record $276 to $2,290 in 2024, a 14% increase from the previous year. ICE’s March report, released Monday, shows that home insurance costs have skyrocketed 61% since 2019. While costs are up across the board, certain areas of the country are getting clobbered by the price hikes. For instance, the Seattle, Salt Lake City and Los Angeles areas each saw insurance prices jump more than 20% last year. And in several Southern cities — Miami, New Orleans, Dallas and Tampa — annual premiums have risen above $3,500. ## Need to insure your home or looking to lower your rate? ### See if you can save money long-term. Click on your state to get started. [View Rates](https://money.com/pr/ga61e1ed77a1?ap_referrer=%2Fcost-homeowners-insurance-broke-record%2F&url=%2Fhome-insurance%2Flp%2Fhome-insurance-survey-publisher-premium) ## Why are home insurance prices so high? Home insurance premiums have ballooned, especially lately, due to a mixture of more frequent natural disasters and increased material costs to repair damaged homes. Just in the past several months, Florida and California have been devastated by hurricanes and wildfires, respectively, resulting in record-setting damages. Last year, Hurricanes Milton and Helene in Florida are estimated to have left a $115 billion wake of destruction across the Sunshine State. Earlier this year, the wildfires around Los Angeles caused at least $50 billion in damages. All the lumber and labor required to make repairs after such disasters are typically paid out by [home insurance companies](https://money.com/best-home-insurance/). And they have gotten much pricier, too. Since the start of the pandemic, [construction materials](https://fred.stlouisfed.org/series/WPUSI012011) have spiked in price by about 40%, far outpacing overall inflation. Costly and catastrophic storms and wildfires then have rippling [effects on home insurance prices across the nation](https://money.com/california-fires-home-insurance-prices/). That’s because insurers often hike their prices in one place to recoup the costs of another in a practice known as “cross-subsidizing.” ** Where homeowners insurance is most expensive** | **Metro area** | **Annual premium (2024)** | **1-year increase** | **5-year increase** | | --- | --- | --- | --- | | Miami | $6,225 | 6.4% | 65.6% | | New Orleans | $5,721 | 4.6% | 85.1% | | Houston | $3,675 | 16.3% | 64% | | Dallas | $3,659 | 19.9% | 81.5% | | Tampa, Florida | $3,602 | 5.8% | 76.7% | | Denver | $3,595 | 13.6% | 77.8% | | Oklahoma City | $3,411 | 11.4% | 44.4% | | Orlando, Florida | $3,208 | 5.5% | 85.5% | | Minneapolis | $3,044 | 18.9% | 71% | | Jacksonville, Florida | $2,805 | 4.8% | 91.2% | _*ICE Mortgage Monitor Data, Adam Hardy for Money.com*_ ## How homeowners are coping with increased costs ICE’s March report found two especially common ways homeowners are trying to escape expensive home insurance rates. “We’re seeing increases in both the share of borrowers switching policies and borrowers taking on higher deductibles as a way to combat rising premiums,” Andy Walden, head of housing market research at ICE, said in a [statement](https://mortgagetech.ice.com/resources/data-reports/march-2025-mortgage-monitor). A record share of homeowners (11.4%) switched policies last year, according to ICE, up from 9.4% in 2023. In a typical year, Walden said, less than 8% switch. Another risky method some homeowners are increasingly trying is to [skip homeowners insurance altogether](https://money.com/homeowners-skip-insurance-costs-soar/). About 6 million homeowners aren’t insured, according to the nonprofit Consumer Federation of America (CFA). In many cases, these are low-income homeowners who may have no choice. “Many consumers are struggling to afford rising premiums and must go without homeowners insurance,” Sharon Cornelissen, director of housing at the CFA, said in a [statement](https://consumerfed.org/press_release/millions-of-consumers-lack-vital-homeowners-insurance-resulting-in-1-6-trillion-in-unprotected-market-value/). “That puts them at risk of losing everything.” Other far-less-risky [strategies homeowners can take to lower insurance prices](https://money.com/ways-to-save-money-home-insurance/) include making certain home upgrades to defend against natural disasters, bundling home and auto insurance policies, and fine-tuning coverage to the cost of rebuilding the home from the ground up (and not based on the home’s entire market value). ## Ensure peace of mind with Homeowners Insurance coverage ### Protect your home and belongings with the right insurance. Click below to learn more. [View Rates](https://money.com/pr/oe4de382dc5b?ap_referrer=%2Fcost-homeowners-insurance-broke-record%2F&url=%2Fhome-insurance%2Flp%2Fhome-insurance-survey-publisher-premium) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "BreadcrumbList", "@id": "https://money.com/cost-homeowners-insurance-broke-record/#breadcrumb", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://money.com" }, { "@type": "ListItem", "position": 2, "name": "Insurance", "item": "https://money.com/insurance/" }, { "@type": "ListItem", "position": 3, "name": "Homeowners Insurance", "item": "https://money.com/homeowners-insurance/" }, { "@type": "ListItem", "position": 4, "name": "The Soaring Cost of Homeowners Insurance Just Broke Another Record" } ] }, { "@type": "WebSite", "@id": "https://money.com/#website", "url": "https://money.com", "name": "Money", "publisher": { "@id": "https://money.com/#organization" } }, { "@type": "WebPage", "@id": "https://money.com/cost-homeowners-insurance-broke-record/#webpage", "url": "https://money.com/cost-homeowners-insurance-broke-record/", "name": "The Soaring Cost of Homeowners Insurance Just Broke Another Record", "isPartOf": { "@id": "https://money.com/#website" }, "datePublished": "2025-03-05T14:57:57.000Z", "mainEntity": { "@id": "https://money.com/cost-homeowners-insurance-broke-record/" }, "inLanguage": "en-US", "breadcrumb": { "@id": "https://money.com/cost-homeowners-insurance-broke-record/#breadcrumb" }, "dateModified": "2025-04-15T23:09:01.000Z" }, { "@type": "NewsArticle", "headline": "The Soaring Cost of Homeowners Insurance Just Broke Another Record", "articleSection": "Insurance", "image": [ { "@type": "ImageObject", "url": "https://img.money.com/2025/03/Insurance-Home-Cost-Up-Years.jpg", "width": 1976, "height": 1318, "caption": "Insurance-Home-Cost-Up-Years" } ], "author": [ { "@type": "Person", "name": "Adam Hardy", "url": "https://money.com/author/adam-hardy/", "@id": "https://money.com/author/adam-hardy/#author", "description": "Adam Hardy is a lead data journalist at Money, where he frequently reports on financial barriers that affect low-income Americans. 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