Map Shows Rising Home Insurance Costs Across 50 States
The cost of home insurance spiked all across the country over the past six years, according to a new analysis by LendingTree, with no state spared of premium hikes.
Between 2019 and 2024, the cost of home insurance increased by a cumulative 40.4 percent, the company found, with the biggest increases concentrated in the past two to three years. From 2019 through 2021, rates were inching up at a relatively slow pace, with 2021 seeing the biggest jump at 3 percent.
From then on, the surge of home insurance rates across the country accelerated significantly. In 2022, rates jumped by 5.4 percent; in 2023, by 11 percent; and in 2024, by 11.4 percent—the highest increase reported in that five-year timeframe.
West Leads For Biggest Rate Hikes
The national level rates have risen by an average 40.4 percent and the state that has faced the steepest increase—Colorado—reported a hike nearly twice as high, at 76.6 percent. It was followed by Nebraska (72.3 percent) and Utah (70.6 percent).
Natural disasters have become more frequent and more severe in these states in recent years, increasing catastrophe exposure for insurers—the potential financial losses resulting from catastrophic events—and bringing up the cost of rebuilding at a time when the construction market is facing rising costs overall and a widespread labor shortage.
Colorado homeowners face the growing threat of wildfires, hailstorms, wind and snowstorms. Nebraskans living in so-called "Tornado Alley" are particularly vulnerable to suffer property damage during storm season. And in Utah, global warming is making storms and wildfires more dangerous than ever.
"Insurance companies have been raising their rates to keep up with their escalating expenses," LendingTree home insurance expert and licensed insurance agent Rob Bhatt said in the report. "The early 2020s saw an uptick in natural disasters and inflation. Insurance companies have had to rebuild more homes than normal, and the cost of rebuilding each one has become more expensive."
Between 2020 and 2024, according to data by the National Oceanic and Atmospheric Administration (NOAA), Colorado reported 22 billion-dollar disasters estimated to have caused losses between $10 billion and $20 billion. The same numbers were reported by Nebraska in the same timeframe, while Utah faced 5 million-dollar disasters costing an estimated $250 million to $500 million.
2024: Bad Year For Insurers
In 2024 alone, Montana and Nebraska were the states facing the highest home insurance rate hikes in the country, both at 22.1 percent. They were followed by Washington at 19.5 percent.
Some of the states that have taken the brunt of the country's home insurance crisis, on the other hand, reported the smallest increases in the country. In Florida, rates went up by 1.7 percent in 2024 and in Texas 3.4 percent.
That is probably because, in these two states, insurers have already significantly increased their rates or dropped out of the most at-risk areas to avoid higher costs. In other words, they were more prepared for what was coming—hurricanes, storms and flooding—than insurers in less vulnerable states might have been.
"Home insurance companies had significant expenses in 2023," Bhatt said. "In seven states, they paid out more in claims than they earned in premiums. Like companies in other industries, they need to earn more than they spend to remain solvent. Unfortunately, they often have to raise their rates to accomplish this goal."
Rates Are High—And Likely To Continue Rising
Homeownership has become more expensive in recent years for Americans, as prices skyrocketed during the pandemic homebuying frenzy and mortgage rates have hovered around the 7 percent mark for the past three years. Rising home insurance rates are coming on top of these existing challenges, putting an additional burden on homeowners.
As of 2025, the average cost of home insurance in the country is $2,801 per year, according to LendingTree. In every state, however, homeowners pay a different rate. Oklahomans currently pay the highest home insurance rates in the country, at $6,133 per year—more than double the national average—followed by Nebraskans ($5,912) and Kansans ($5,412).
"For new homebuyers, rising home insurance costs can reduce the amount they can borrow, which, in turn, can make it more difficult to find an affordable home," Bhatt said. "If you already own your home, rising insurance costs cut into your budget for other household essentials."
Several experts expect the cost of home insurance to continue rising this year as President Donald Trump's tariffs on U.S. trading partners increase the cost of crucial material used to rebuild homes damaged by natural disasters. Insurify expects rates to jump by 11 percent across the country by the end of the year.
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