Home Insurance Price Hikes Are Far Outpacing Inflation. Here's Where Premiums Cost the Most
In recent years, homeowners insurance prices have risen far faster than inflation, with the national average premium for a typical policy reaching a staggering $3,303 in 2024.
From 2021 to 2024, home insurance costs increased an average of 24%, according to an analysis of insurance pricing data released Tuesday by the nonprofit Consumer Federation of America, or CFA. Nationally, it amounts to a $21 billion price hike across the board, with premiums rising at nearly double the rate of inflation. (Labor Department data shows that from December 2021 to December 2024, overall prices for consumers rose 13.2%.)
Per homeowner, that shakes out to a $648 increase in annual premiums over that three-year period, CFA found.
“The skyrocketing price of insurance premiums is deepening the housing crisis,” Sharon Cornelissen, CFA’s director of housing and a lead author of the report, said in a news release. “Homeowners across the country are feeling the strain.”
Where home insurance costs the most
CFA found that home insurance premiums have risen in 95% of all U.S. ZIP codes. In 1 in 3 areas, premiums rose by more than 30% over the past few years.
Some locations in particular have fared far worse — especially in the South. In eight metropolitan areas, a typical home insurance policy costs at least $5,000 a year. They are:
- Miami: typical policy costs $15,438
- New Orleans: $10,522
- Tampa, Florida: $7,181
- Oklahoma City: $6,542
- Houston: $6,288
- Orlando, Florida: $6,020
- Jacksonville, Florida: $5,258
- Louisville, Kentucky: $5,122
And homeowners in six major cities have been dealing with price increases of 40% or more:
- Salt Lake City: 62% price increase for home insurance ($1,796 annual premium)
- New Orleans: 58% increase ($10,522 annual premium)
- Jacksonville, Florida: 47% increase ($5,258 annual premium)
- Phoenix: 47% increase ($2,278 annual premium)
- Chicago: 46% increase ($2,876 annual premium)
- Pittsburgh: 42% increase ($1,764 annual premium)
Percentage increases don’t always tell the whole story. While Salt Lake City saw the largest price growth in this analysis, at 62%, the actual cost of home insurance there is far below the national average.
In terms of dollars, homeowners in New Orleans and Miami saw the largest nominal price hikes, with costs rising $3,878 over three years in New Orleans and $2,731 in Miami.
The trends mirror data released in March by the financial firm Intercontinental Exchange, which show home insurance prices over the past five years have spiked 61%.
Lately, home insurance premiums have been on an upward march due to a mixture of more frequent natural disasters and increased material costs to repair damaged homes. No end appears in sight. Just in the past six months, Florida and California have been devastated by hurricanes and wildfires, respectively, resulting in record-setting damages.
These catastrophic natural disasters then have rippling effects on home insurance prices across the nation because insurers often hike their prices in one place to recoup the costs of another — a practice known as “cross-subsidizing.”
Rising premiums put more pressure on homeowners and potential buyers who are already dealing with record-high housing costs. In some major cities, CFA says, more than a quarter of homeowners are paying more each month for home insurance and taxes than they are for their mortgage.
A separate study from CFA in 2024 found that about 6 million homeowners are skipping home insurance altogether. In many cases, these are low-income folks who have no other option.
To create its 2025 home insurance report, CFA purchased proprietary insurance premium data on all U.S. ZIP codes. The organization says public data on home insurance costs is crucial and is calling on lawmakers and regulators to require insurance companies to disclose their transactions with consumers, similar to the requirements for mortgage lenders.
More from Money:
Sticker Shock: Homeowners Fed Up With Higher Insurance Rates and Slower Claims
10 Home Upgrades That Can Lower Your Insurance Bill
Homeowners Are Increasing Insurance Deductibles to $5,000 or More to Save Money
