How much did home insurance rates increase in 2024?
S&P found that the average home insurance premium increase by the 10 major insurers in its year-end survey was 10.4%. American Family Insurance had the highest premium increase, at 16.5% as of December 27, 2024, followed by Liberty Mutual, at 14.5%.
Chubb and USAA had the smallest rate increases at 5.4% and 3.1%, respectively.
Homeowners have had to deal with this trend for some time. Over the past five years, average home insurance premiums from the top ten companies have risen by 53.1%. Progressive has had the biggest increase in premiums since 2019, with a cumulative change of 87.8%, followed by American Family at 66%.
State Farm had the smallest change in premiums, with rates going up only 24.1% since 2019, followed by USAA at 31.4%.
Top 10 homeowners insurance company premium increases since 2019
The table below shows how much each company increased rates in 2024 and how much they increased rates in 2023. It also shows the cumulative home insurance premium increase since 2023 and since 2019.
| Company | 2023 increase | 2024 increase | 2023-2024 cumulative increase | 2019-2024 cumulative increase |
|---|---|---|---|---|
| State Farm | 7.9% | 10.5% | 19.3% | 24.1% |
| Allstate | 13.2% | 8.5% | 22.9% | 43.3% |
| Liberty Mutual | 19.7% | 14.5% | 37.1% | 61.5% |
| USAA | 15.3% | 3.1% | 18.8% | 31.4% |
| Farmers | 18.8% | 11.8% | 32.9% | 65.9% |
| Travelers | 11.2% | 8.5% | 20.7% | 48.2% |
| American Family | 12.7% | 16.5% | 31.2% | 66.0% |
| Nationwide | 15.7% | 10.2% | 27.6% | 57.6% |
| Chubb | 7.2% | 5.4% | 13.0% | 44.9% |
| Progressive | 19.4% | 13.5% | 35.5% | 87.8% |
Source: S&P Global Market Intelligence, rates as of December 27, 2024.
Does home insurance increase every year?
Your home insurance rates might increase every year, but not necessarily. Rates are affected by a lot of factors, one of which is the cost to rebuild homes. Since that tends to go up most years, it can cause the cost of home insurance coverage to increase annually. However, other factors might override that increase, keeping your home insurance costs level or even resulting in a decrease.
Why are home insurance rates going up?
The drivers behind the steep increases vary from state to state, but there are a few common themes.
- Inflation. Home insurance inflation is caused by inflation elsewhere. The cost of supplies to repair or rebuild a home and labor have risen. Mark Friedlander, director of communications for the Insurance Information Institute (III), notes replacement costs have increased a cumulative 55% since 2019, far outpacing the Consumer Price Index.
- A steep rise in reinsurance costs. Reinsurance is the insurance that a carrier like State Farm will purchase from another insurance company to insulate itself from the risk of a major claims event. Friedlander notes reinsurance costs have risen an average of 40% across the U.S. this year, with some high-risk states, such as Florida, seeing hikes as much as 70% increases for reinsurance.
- Natural disasters, which vary by region. Florida, for example, has been experiencing soaring litigation costs related to insurance claims in addition to the fallout from hurricanes. Texas has experienced a sharp increase in the number and severity of major storms carrying golf-ball size chunks of hail. Louisiana has suffered the familiar aftereffects of hurricanes and flooding.
In all three states, private insurance carriers have taken steps to limit their business or entirely pull out of high-risk areas. Meanwhile, severe wildfires have been a major cause of rising insurance premiums in several western states; major home insurance companies have pulled back in California.
Where are home insurance rates rising the most?
Homeowners in Nebraska saw the largest overall jump in rates last year, at a weighted average of 22.7%, according to S&P Global. Montana followed it at 22% and Iowa at 21.1%.
In all, 34 states saw double-digit increases in their rates last year. The table below shows the increases in each state since 2019.
| State | 2019 | 2020 | 2021 | 2022 | 2023 | YTD 2024 | 2023 - YTD 2024 | 2019 - YTD 2024 |
|---|---|---|---|---|---|---|---|---|
| Countrywide | 2.5 | 3 | 3.8 | 6.3 | 12.7 | 10.4 | 24.4 | 44.9 |
| Alabama | 1.9 | 3.4 | 1.9 | 3.6 | 9.2 | 10.4 | 20.6 | 34 |
| Alaska | -0.7 | 0 | -0.1 | 1 | 5.6 | 6.7 | 12.7 | 12.9 |
| Arizonal | 2.6 | 3.5 | 3.9 | 11.2 | 23.2 | 12.6 | 38.8 | 70.1 |
| Arkansas | 1.5 | 1.1 | 4.4 | 4.9 | 14.9 | 12.4 | 29.2 | 45.3 |
| California | 6.3 | 6.8 | 5.9 | 3.2 | 10.2 | 13.6 | 25.2 | 55.3 |
| Colorado | 5.8 | 5.8 | 6.6 | 12.8 | 17.3 | 13 | 32.6 | 78.5 |
| Connecticut | 2.8 | 3.4 | 2.7 | 3.6 | 8 | 14.7 | 23.8 | 40.1 |
| Delaware | 2.5 | -0.7 | 5.4 | 3.6 | 4.2 | 7.2 | 11.8 | 24.1 |
| District of Columbia | 0.8 | 0.4 | 2.3 | 4.5 | 5.5 | 6.6 | 12.4 | 21.7 |
| Florida | 0.4 | 10.9 | 8.4 | 11.1 | 13.7 | 1 | 14.8 | 54 |
| Georgia | 3.5 | 2.4 | 3.9 | 3.8 | 6.1 | 11.9 | 18.8 | 35.8 |
| Hawaii | 2.8 | 1.8 | 0.6 | 3.1 | 1.9 | 11.3 | 13.4 | 23.2 |
| Idaho | 2.6 | 2.5 | 2.3 | 4.8 | 16.9 | 10.5 | 29.2 | 45.7 |
| Illinois | 3.6 | 3.5 | 3.6 | 6.3 | 18.5 | 14.1 | 35.2 | 59.7 |
| Indiana | 1.3 | 0.7 | 2.8 | 5.5 | 12.3 | 13.8 | 27.9 | 41.4 |
| Iowa | 2.2 | 1.8 | 4.7 | 7.7 | 16.8 | 21.1 | 41.5 | 65.9 |
| Kansas | 2.1 | 2.5 | 4.1 | 4.7 | 8.3 | 13.2 | 22.6 | 39.8 |
| Kentucky | 0.7 | -0.2 | 1.2 | 4.4 | 11.7 | 11.3 | 24.3 | 31.9 |
| Louisiana | 0 | -0.8 | 2.7 | 6 | 14.2 | 9.2 | 24.7 | 34.6 |
| Maine | 0.5 | 0.9 | 1.1 | 1.2 | 6.3 | 7 | 13.8 | 17.9 |
| Maryland | 3.3 | 2.4 | 4.8 | 6 | 13.3 | 11.4 | 26.3 | 48.3 |
| Massachusetts | 2.1 | 1.6 | 0.4 | 4.5 | 10.5 | 7.9 | 19.3 | 29.9 |
| Michigan | 0.9 | 1.1 | 1.1 | 3.4 | 11.4 | 11.4 | 24.1 | 32.4 |
| Minnesota | 3.2 | 2.2 | 4.3 | 7.8 | 16.6 | 20.7 | 40.8 | 67 |
| Mississippi | 1.2 | 0.8 | 1.9 | 4 | 3.9 | 11.2 | 15.6 | 24.9 |
| Missouri | 2.4 | 1.7 | 2.7 | 6.3 | 8.7 | 16.4 | 26.5 | 43.7 |
| Montana | 1.6 | 3.7 | 4.2 | 6.9 | 10 | 22 | 34.3 | 57.7 |
| Nebraska | 4.4 | 4.8 | 5.1 | 6.5 | 15.4 | 22.7 | 41.5 | 73.2 |
| Nevada | 3.4 | 2.4 | 3.3 | 1.6 | 6.6 | 4.3 | 11.2 | 23.7 |
| New Hampshire | 1.6 | 1.1 | 0.8 | 4 | 7.2 | 10.4 | 18.4 | 27.5 |
| New Jersey | 1.4 | 0.1 | 2.8 | 3.7 | 4.4 | 10 | 14.9 | 24.4 |
| New Mexico | 2.9 | 2.7 | 2.8 | 6.6 | 11.9 | 11.9 | 25.2 | 45 |
| New York | 2.5 | 1.5 | 2.3 | 3.2 | 6.7 | 5 | 12.1 | 23.1 |
| North Carolina | 0.3 | 2.9 | 1.9 | 12.3 | 9.2 | 7.2 | 17 | 38.2 |
| North Dakota | 0.8 | 1.3 | 1.4 | 2.4 | 8.1 | 18.2 | 27.8 | 35.4 |
| Ohio | 0.4 | 1.2 | 3.8 | 5.8 | 10.2 | 10.9 | 22.2 | 36.4 |
| Oklahoma | 1.6 | 3.6 | 3.1 | 10.7 | 15.5 | 9.9 | 27 | 52.6 |
| Oregon | 2.3 | 1.1 | 5.2 | 10.2 | 16.4 | 8.9 | 26.8 | 52 |
| Pennsylvania | 1.1 | 1 | 2.4 | 5 | 7.1 | 13.7 | 21.8 | 33.6 |
| Rhode Island | 2.9 | 2.8 | 2.8 | 5.1 | 12.4 | 11.6 | 25.4 | 43.3 |
| South Carolina | 0.5 | 0.9 | 0.6 | 1.6 | 4.6 | 9.1 | 14.1 | 18.3 |
| South Dakota | 3.2 | 3.6 | 5 | 7.5 | 12.1 | 15.9 | 29.9 | 56.8 |
| Tennessee | 0.8 | 1.4 | 1.7 | 4.6 | 11.1 | 9.8 | 22.1 | 32.7 |
| Texas | 3.4 | 2.1 | 4.9 | 9.5 | 23.9 | 3.4 | 28.1 | 55.4 |
| Utah | 3.4 | 2.4 | 4.3 | 8.5 | 21.1 | 20.5 | 46 | 75.1 |
| Vermont | -0.1 | 0.3 | -0.4 | 1.1 | 5.7 | 5.7 | 11.6 | 12.7 |
| Virginia | 2.7 | 3.1 | 3.4 | 4.8 | 11.1 | 9.9 | 22.2 | 40.1 |
| Washington | 2.9 | 2 | 2 | 3.2 | 14.4 | 20.2 | 37.5 | 51.9 |
| West Virginia | -0.1 | -0.8 | 0.6 | 2.2 | 5.2 | 10.3 | 16 | 18.2 |
| Wisconsin | 0.1 | 0.6 | 0.8 | 5.2 | 12.3 | 15.5 | 29.8 | 38.7 |
Note:
Effective rate change – 2019, 2020, 2021, 2022, 2023. Dec. 27, 2024
*Cumulative change – 2023 – Dec. 27, 2023, 2019 – Dec. 27, 2024
Data compiled Jan. 21, 2025, year to date as of Dec. 27, 2024
Source: S&P Global Market Intelligence
Where are insurance rates rising the least?
On the other hand, a few states have seen almost no or very modest increases. In an unexpected turn for Florida homeowners, rates increased by only 1% in 2024.
Florida was followed by Texas, another surprise at 3.4%, and Nevada at 4.3%.
What can a homeowner do to save on home insurance?
Depending on where you live, it may be very difficult to escape seeing a sharp increase in premiums. If you live close to a coast that is often battered by hurricanes and severe storms, live close to a heavily treed area in a parched region, or are in an area that is frequently hammered by hail, it may be next to impossible to escape a steep hike. In some cases, you may not be able to get insurance from a private carrier at all and have to seek out help from a state-sponsored insurer of last resort.
However, even in the face of pending hikes, there are strategies you can use to try to limit the impact and save on home insurance.
- Homeowners insurance discounts can save you a lot. The most common way to get a discount is to bundle your homeowners insurance policy and other policies, such as auto and RV, with one carrier. This will usually generate discounts on both policies.
- Insurers will also offer insurance discounts for being clams-free for several years, loyalty (being with the same insurer over a number of years), and installing protective devices in the home, such as a centralized fire alarm and monitored burglar system.
- If you haven’t done it already, be sure to ask if you can receive a discount for being a member of a trade or professional association, a university alumnus, or other groups such as automobile and service associations.
- Another strategy is to consider increasing your deductible. Friedlander says this has been a growing trend and can significantly lower the cost of coverage. “The downside is the homeowner will be responsible for paying more out of pocket in the event of a covered loss,” he adds.
- Finally, shop around. Your current carrier may still offer the lowest rate due to a loyalty discount, but you won’t know until you look around. Online comparison tools can help with this task and Friedlander notes that working with a local insurance agent can also be helpful to gain quotes and analyze your options and possible discounts.
Source:
- S&P Global Market Intelligence. "U.S. homeowners rates rise by double digits for 2nd straight year in 2024.” Accessed February 2025.
Frequently asked questions
How much should homeowners insurance increase every year?
There's no specific amount by which homeowners should increase every year. In fact, there's no requirement that it should go up annually. Changes to annual home insurance rates depend on many factors.
How much did Farmers home insurance rates increase from 2023 to 2024?
According to S&P Global, Farmers increased home insurance rates by 32.9% from 2023 to 2024.
Helpful home insurance tools and calculators
