Homeowner Insurance Premiums Surge Across the U.S.
By Jason Woleben
US homeowners have faced substantial premium increases for their insurance policies over the past two years. According to data compiled by S&P Global Market Intelligence’s RateWatch application, approved filings through December 27, 2024, show a national calculated weighted average effective rate increase of 10.4% for homeowners insurance in 2024. This follows a 12.7% increase in the previous year.
In total, 33 states saw double-digit calculated effective rate increases in 2024. Nebraska experienced the largest increase at 22.7%. Another five states—Montana, Iowa, Minnesota, Utah, and Washington—also had premium increases exceeding 20% in 2024. The rate information comes from owner-occupied homeowner rate filings submitted to state Departments of Insurance and collected by S&P Global Market Intelligence. The analysis is limited to the 10 largest homeowner underwriters by direct premiums written in 2023, plus any of the country’s 10 largest homeowner underwriters outside of the state’s top 10. This excludes state-backed insurers like Citizens Property Insurance Corp. of Florida.
The effective rate change is the average of cumulative changes weighted against direct premiums written for each insurer, calculated within the National Association of Insurance Commissioners’ property and casualty regulatory statements. The calculations are based on rate filings entered into the database through December 27, 2024, for 49 states and the District of Columbia. Wyoming was excluded from the analysis due to the limited number of available filings.
States with Lowest Rate Increases
The states with the smallest calculated weighted average increases in 2024 were Nevada (4.3%), Texas (3.4%), and Florida (1.0%). Florida’s calculation does not factor in any changes by Citizens Property Insurance Corp., the state-backed insurer of last resort.
Overall, the Florida homeowners market has shown improvement following legal reforms in 2023. However, the impact of back-to-back costly hurricanes last year may impede the recovery.
Insurance Giants Respond
Among the largest private homeowners insurers in the country, American Family Insurance Group led with the largest companywide calculated average effective rate change of 16.5% in 2024. The Wisconsin-based insurer raised rates across 42 states, with double-digit increases in 32 of them. The insurer’s three highest weighted-average rate increases were in Missouri (30.1%), Illinois (27.5%), and Nebraska (27.1%).
Liberty Mutual Holding Co. Inc. had the second-highest calculated weighted-average rate change at 14.5%. Liberty Mutual implemented double-digit rate increases across 36 states, with the most significant change occurring in Montana at 44.1%. The insurer had multiple rate increases in Montana during 2024. Additionally, Liberty Mutual had a calculated rate increase of over 30% in Nebraska (38.3%), Colorado (32.1%), and Washington (31.4%).
Progressive Corp. saw a weighted average increase of 13.5% across 42 states, ranging from 50.8% in Virginia to 1.3% in Nevada.
Other large insurers also recorded increases. Farmers Insurance Group of Cos. increased rates by 11.8%, State Farm Mutual Automobile Insurance Co. by 10.5%, and Nationwide Mutual Group by 10.2%.
