As natural disasters have become more frequent in recent years, homeowners have continued to see a steady climb in home insurance costs—and a new survey suggests that trend is far from over.
Insurify projects that the average home insurance premium in the U.S. will rise to $3,520 in 2025, marking an 8% increase from 2024. That means the typical homeowner will pay about $261 more in premiums by year’s end.
However, averages don’t tell the full story. In some states, rate hikes will be significantly steeper. Louisiana residents are expected to see increases of 27%, according to Insurify. Californians may face a 21% spike, driven largely by widespread wildfire damage across Los Angeles and other areas.
Other states seeing substantial jumps include Iowa, Hawaii, and Minnesota, each projected to experience premium increases of 15% or more.
Florida continues to hold the title for the most expensive state for home insurance, with annual costs expected to reach $15,460 by the end of the year. Colorado is also moving into the top tier of costly states, with severe hail damage pushing it into the top four by the end of 2025.
In total, nine states are projected to have average annual home insurance rates exceeding $5,000.
Nationally, the 2025 average will be more than $1,000 higher than what homeowners paid just four years ago, in 2021.
This surge comes as home repair costs are also expected to rise significantly when new tariffs on construction materials—like steel, aluminum, and lumber—take 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.”