The story at a glance
- American homeowners are paying about 38% more for insurance than they did in 2019.
- Insurance premiums for people living in Arizona, Illinois and Nebraska have risen by more than 55% since 2019.
- Nationwide, home insurance rates have already risen 5.8% since January, with the biggest increase in Nebraska, where homeowners premiums are up 13.3%.
(News Nation) – American Homeowners are paying A new study finds that premiums are up about 38% compared to 2019, but three states, including Arizona, have significantly higher rates that mean residents are paying even more.
ReportsHome insurance rates are up 37.8% since before the COVID-19 pandemic, according to a report released this week by LendingTree. While homeowners’ premiums across the country have skyrocketed, premiums for people living in Arizona, Illinois and Nebraska have risen by more than 55% since 2019, according to data through March.
The average homeowner pays $2,478 a year in insurance premiums, but the report found that residents of Oklahoma and Nebraska pay twice that amount, with annual homeowner premiums of $5,478 and $5,363, respectively.
Arizona homeowners saw the biggest premium increases in the Grand Canyon State, up 62%, while Nebraska premiums rose 56.9% to 59.9%, according to the report.
By comparison, Alaska’s homeowner tax rate has increased by just 6.8% over the past five years, the lowest rate of increase, followed by Vermont (7.4%) and West Virginia (9.9%).
Only Colorado saw premiums remain flat for 2024, while homeowners in Florida (0.1%) and Maryland (0.2%) saw slight increases. Nationwide, homeowners’ insurance rates have already increased 5.8% since January, with the steepest increase occurring in Nebraska, where homeowners’ premiums increased by 13.3%.
Experts say a big part of the surge in insurance premiums is Rising house pricesInflation and the cost of building materials are also contributing factors to the rise in home prices, according to the report. Though inflation is starting to subside, experts say construction costs have continued to rise since 2019, impacting the cost of home repairs.
“Insurance companies are having to repair more homes, and it’s more expensive per home to rebuild than it was five years ago,” says Rob Butt, a home insurance expert at LendingTree. “When it costs insurers more to pay out claims, they raise our premiums. This impacts the premiums of just about everyone, including people who haven’t been directly affected by natural disasters, or at least not yet.”
At the same time, more homes are at risk of suffering severe damage. Storms and other weather-related eventsClimate change is influencing the occurrence of severe weather, according to the report.
According to the Lending Tree report, wind and hail damage claims account for more than 42% of all insurance claims filed since 2019. Fire and lightning claims are the most expensive, accounting for 24% of all claims.
The average claim for fire and lightning damage was $83,519, according to the report.
