Dramatic Rise in Homeowners Insurance Rates
Homeowners insurance rates in the United States have increased by 40.4% over the past six years, with the most significant jumps occurring in the last two years, according to a new report from LendingTree. The 2025 State of Home Insurance Report reveals that rates remained relatively stable between 2019 and 2021, with modest increases of 2.0%, 2.1%, and 3.0% respectively.
However, starting in 2022, insurance rates began to climb more steeply, with increases of 5.4% in 2022, 11.0% in 2023, and 11.4% in 2024. This trend has resulted in the average annual cost of home insurance in the U.S. reaching $2,801. The report also highlights significant variations in insurance costs across different states.
Most Expensive States for Home Insurance
Oklahoma has emerged as the most expensive state for homeowners insurance, with an average annual rate of $6,133. Nebraska follows closely at $5,912, while Kansas ranks third at $5,412. In contrast, Hawaii offers the lowest average rate at $632, followed by California at $1,260 and Vermont at $1,339.
States with Largest Rate Increases
The report identifies Colorado, Nebraska, and Utah as the states experiencing the most substantial rate increases between 2019 and 2024. Colorado saw a remarkable 76.6% increase, partly attributed to an uptick in billion-dollar natural disaster events, with 24 such incidents occurring between 2019 and 2024. Nebraska witnessed 25 natural catastrophes during the same period, while Utah faced growing losses from disasters in wildfire-prone areas.
Recent Rate Changes
In 2024, Montana and Nebraska recorded the largest jumps in home insurance rates, both at 22.1%. Minnesota and Washington followed with increases of 19.5%. Conversely, Florida (1.7%), Texas (3.4%), and New York (3.8%) experienced the smallest rate increases in 2024. States with the smallest cumulative increases from 2019 to 2024 included Vermont (12.2%), Alaska (12.9%), and Maine (17.9%).
LendingTree’s analysis is based on home insurance data from Quadrant Information Services, sourced from insurer filings, and RateWatch from S&P Global. The analysis used standard coverage amounts and deductibles unless otherwise noted. The specific coverages and deductibles used included:
- $400,000 dwelling coverage
- $40,000 other structures
- $200,000 personal property
- $80,000 loss of use coverage
- $100,000 liability
- $5,000 medical payments
- $1,000 deductible
This comprehensive report provides valuable insights into the evolving landscape of homeowners insurance in the United States, highlighting regional disparities and the impact of natural disasters on insurance rates.
