According to a report from the National Association of Insurance Commissioners (NAIC), average homeowners insurance premiums have increased substantially from 2018 to 2024, with the West experiencing the highest rise at 43%, followed by the Southeast at 27%, the Midwest at 25%, and the Northeast at 18%.
In 2024, the average premium in the Southeast reached $1,818, while the Northeast had the lowest at $1,396. Since the beginning of 2025, premiums have continued to rise by an additional 7%. The report highlights that insurers are increasingly opting not to renew policies, with non-renewal rates rising significantly, particularly in the West where they have increased by 216%.
This trend is attributed to heightened financial risks from climate change and rising home rebuilding costs, which insurers are passing on to consumers. The affordability crisis is particularly acute for low-income households, who may drop coverage altogether, risking their homes in the event of disasters.
Experts warn that if homeowners insurance becomes prohibitively expensive, it could lead to a decline in home purchases, further impacting the economy. The report underscores the operational robustness of the homeowners insurance market, yet reveals significant stress and challenges that could affect consumer access to coverage.
The increasing frequency and severity of climate-related disasters are cited as primary drivers of rising premiums, alongside inflationary pressures on repair and rebuilding costs, which have surged by 45% from 2020 to 2023. Overall, the NAIC report paints a concerning picture of a market under pressure, with implications for homeowners and the broader housing sector