Several States Are Seeing Big Jumps in Home Insurance Rates. Here’s How You Can Ease the Impact.

According to a recent report from Insurify, a virtual insurance company, homeowners in many states across the U.S. are facing sharp increases in home insurance premiums. In addition, many areas are seeing decreases in carrier options. This trend, driven by severe weather, rising inflation, and escalating homebuilding costs, is only expected to get worse.

States Facing the Biggest Rate Hikes

The report warns that homeowners can expect an average premium increase of 6% by the end of the year, on top of the 20% increase seen in the past two years. However, some states are bracing for even higher jumps.

Louisiana leads the pack with a projected 23% increase, bringing the average annual premium to nearly $7,810.

Maine follows closely behind with a 19% increase, pushing rates to $1,571. Other states seeing notable jumps include Michigan (14%), Utah (13%), and Montana (12%). Coastal regions like Florida, Louisiana, and South Carolina are particularly vulnerable due to hurricane risks, while states like Texas, Colorado, and Nebraska are battling a rise in wildfires. With the 2024 hurricane season forecasted to be active, many coastal homeowners may face even steeper increases next year.

Why Are Rates Rising?

The surge in premiums can be attributed to a combination of factors. As severe weather events like hurricanes and wildfires become more frequent and intense, insurers are forced to raise rates to cover the increased risk. Meanwhile, inflation and the rising cost of homebuilding materials are pushing up the cost of repairs and replacements, further driving up premiums.

Additionally, some insurers are withdrawing from high-risk areas altogether. Major carriers like Allstate are retreating from states like California and Florida, leaving homeowners with fewer options and often leading to higher costs from remaining providers. As a result, some homeowners—especially those in hurricane-prone regions—are seeing their insurance costs skyrocket by as much as $500 per month.

What Can Homeowners Do?

While higher premiums are largely out of homeowners’ control, there are steps you can take to help ease the impact:

Shop Around for Quotes: Don’t settle for your current insurer. Compare quotes from multiple providers to find the best deal.
Invest in Home Protections: Adding storm-resistant features, like hurricane shutters or impact windows, can not only protect your home but may also earn you discounts on your policy. Similarly, in wildfire-prone areas, consider adding fire-resistant siding or windows to reduce risk.
Review Your Coverage: It might be tempting to cut coverage to save on premiums, but skimping on insurance could leave you vulnerable in the event of a disaster. Flood coverage is especially important, as it’s not included in standard policies, and 60% of homeowners lack it.

While the outlook for insurance rates is challenging, taking proactive steps can help homeowners better navigate these changes and ensure their homes remain protected while keeping costs in check whenever possible. If you have any questions or concerns about your policy, be sure to consult with your Dayton Ritz + Osborne Insurance network agent. Our team of experts is here to help guide you through these uncertain times and keep you protected in the case of evolving risks.

Dayton Ritz + Osborne Insurance proudly serves the Hamptons area. Call today at 631-324-0420 or visit our website.