The past year saw some dramatic changes for homeowners. The real estate market and mortgage rates made buying a home more expensive. And from the insurance side, insurance rates saw increases.
Housing expenditures are often people's largest budget category. With 65.8% of Americans owning homes and the vast majority (more than 90%) carrying some type of home insurance...this affects a lot of people.[1]
With 2024 well underway, what do our experts predict for homeowners insurance in the new year? Here's our breakdown:
- Prices will likely continue to rise due to inflation and weather events.
- Pricing rises will vary dramatically based on location.
- Some geographies may continue to find it hard to find home insurance.
Average cost of home insurance is rising
The average annual cost to insure a home in the United States is $1,602 in 2024. That's a 2% increase over the previous year, but an 18% increase from five years ago.
We predict a continued increase in 2024. Here are some of the reasons why:
Increases vary based on where you live
In addition to individual factors like your claims history and features of your home, where your house is located is one of the biggest factors in how much you pay.
- The states with the highest annual premiums are Nebraska and Oklahoma. Nebraska had average annual premiums almost three times the national average, in part due to hail and volatile weather patterns.
- The states with the lowest premiums are Hawaii and Delaware, both with annual premiums one-sixth of the national average.
- 13 states now pay an average of more than $2,000 a year in home insurance premiums.
How to save on home insurance
Short of selling your house and trying to find a place immune to climate change, how can you possibly save on home insurance? Here are some ways:
- Bundle your home/renters/condo insurance policy with your auto policy for savings.
- Consider all possible discounts that might apply to you.
- Shop around to compare options on at least an annual basis.