According to a recent report by online lending service Lending Tree, home insurance rates in the United States have seen a substantial 37.8% cumulative increase since 2019. Louisiana has emerged as the 8th highest state in terms of home insurance costs, with residents facing an average annual premium of $3,510. This represents a significant 41.7% surge compared to the national average of $2,478.
Several factors contribute to the escalating home insurance rates, including rising home prices, inflation affecting the costs of building materials, and the growing impact of climate change leading to more frequent and severe weather events.
Among the states experiencing the largest cumulative increases in home insurance rates from 2019 to 2024, Arizona topped the list with a staggering 62.1% surge, followed closely by Nebraska at 59.9% and Illinois at 56.9%. In contrast, Alaska observed the smallest increase at a modest 6.8%.
In the single year of 2024 alone, home insurance rates across the nation saw a notable 5.8% increase. Nebraska led this surge with the highest increase of 13.3%, while Colorado remained unchanged.
Analysis of claims data from 2017 to 2021 reveals that wind and hail damage constitute the primary causes of homeowners insurance claims, representing over 40% of all claims during this period. While less frequent, fire and lightning claims incurred the highest average cost, amounting to $83,519.
