Insurify: US Home Insurance Premiums Up 12% to $2,948
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- Insurify reported the average U.S. homeowner’s insurance premium rose 12% last year to $2,948 and is projected to increase another 4% this year, outpacing overall inflation.
- Matt Brannon of Insurify said frequent extreme‑weather catastrophes create extreme financial risk for insurers, prompting them to raise rates.
- California saw a 16% premium increase since 2023 and is projected to rise another 16% by end‑2026, driven by wildfire losses and regulators allowing forward‑looking catastrophe models.
- Georgia experienced a 24% premium increase since 2023 and is projected to rise 10% by end‑2026, with hurricane Helene losses and a high combined ratio indicating insurers collect less than they pay out.
- Illinois premiums jumped about 48% since 2023, with State Farm planning a 27% hike and Allstate a 9% increase, while Governor JB Pritzker called the surge “nothing short of a crisis” and urged legislation to cap hikes.
- Nebraska premiums rose 20% since 2023 and are projected to increase 13% by end‑2026, partly due to severe hail and wind storms, and the state’s market‑based pricing system that lacks regulatory caps.
- Michigan premiums rose 36% since 2023 but are projected to increase only 3% by end‑2026, reflecting frequent severe storms and insurers’ attempts to adjust pricing to cover potential costs.
Why it matters: Homeowners across the nation face steeper bills, eroding disposable income, while insurers attempt to offset mounting loss payouts; states like California and Illinois see political pressure to regulate rates, but market‑based pricing and climate risk keep premiums climbing. Georgia and Nebraska also see sharp hikes, worsening affordability for many.
