- The average cost of home insurance is projected to rise 8% this year. Homeowners in Louisiana, however, should brace for an increase of 27%, according to a study by Insurify.
With natural disasters seemingly occurring more frequently in the past few years, homeowners have been seeing their home insurance rates rise steadily. And a new survey indicates the trend won't be reversing anytime soon.
Insurify projects the average premium in the U.S. will increase to $3,520 this year, an 8% jump from 2024. The average homeowner, it projects, will spend an additional $261 on home insurance premiums by the end of the year.
Averages, though, don't reflect how bad things will be for residents of some states. When it comes to state-specific increases, residents of Louisiana can expect rate increased of 27%, the group says. Californians won't be far behind, with a projected 21% increase following the devastating wildfires in Los Angeles and across the state.
Iowa, Hawaii, and Minnesota, meanwhile, will see rises of 15% or more.
Florida, meanwhile, remains the most expensive state to insure a home. The survey projects the annual cost there will rise to $15,460 by the end of the year. Colorado, meanwhile, will become one of the four most expensive states by the end of 2025, due to increased hail damage.
Nine states will see average rates surpassing $5,000 per year.
The projected national average for 2025 is over $1,000 more than homeowners paid as recently as 2021.
This surge in insurance pricing also comes as home repairs are expected to be considerably higher when tariffs on steel, aluminum, lumber and other materials used by homebuilders go into effect.
“The cost to rebuild or repair a home is a primary consideration in calculating insurance rates,” said Daniel Lucas, carrier relations manager at Insurify. “If the cost of construction materials rises, those costs would be factored into policyholder premiums.”
