Utah saw the steepest surge in homeowners insurance premiums, jumping 59%—from an average of $1,126 in 2021 to $1,795 just four years later. According to Utah Insurance Commissioner Jon Pike, the main drivers are more homes being built in wildfire-prone areas and a historically underpriced insurance market finally catching up with inflation.
Home insurance rate changes since 2021
5/6/2025
The top five states with the biggest increases in premiums were:
- Utah: +59%
- Illinois: +50%
- Arizona: +48%
- Pennsylvania: +44%
- Nebraska: +35%
“The skyrocketing price of insurance premiums is deepening the housing crisis … and homeowners across the country are feeling the strain,” said Sharon Cornelissen, Director of Housing at the Consumer Federation of America (CFA), in a statement.
The findings are based on a CFA analysis of data from Quadrant Information Services, which collected rate information from over 100 insurance providers across nearly every ZIP code. The sample profile used: a homeowner with a mid-range credit score insuring a home with a $350,000 replacement value.
Only three states saw average premiums either decline or stay the same:
- West Virginia: -24%
- Mississippi: -15%
- Wyoming: No change
The CFA identified the most expensive states for homeowners insurance in 2024 as Florida, Louisiana, Oklahoma, Kentucky, and Nebraska. In Florida, for instance, a homeowner with fair credit and $350,000 in dwelling coverage is now paying an average of $9,462 a year—or $789 per month—up nearly 30% from $7,344 in 2021.
According to the CFA, several major factors are fueling the sharp rise in premiums:
- Climate change: Increasing damage from wildfires, flooding, and extreme weather events
- Inflation: Higher labor and material costs are making homes more expensive to repair and rebuild
- Reinsurance pressures: Rising reinsurance rates are being passed on to consumers
- Weak regulatory oversight: State insurance regulators have given companies greater flexibility to hike rates
