{"id":175781,"date":"2024-07-29T12:24:10","date_gmt":"2024-07-29T18:24:10","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=175781"},"modified":"2024-07-29T12:51:58","modified_gmt":"2024-07-29T18:51:58","slug":"home-insurance-rates-to-increase-another-6-percent","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/home-insurance-rates-to-increase-another-6-percent","title":{"rendered":"Home Insurance Rates Set to Increase Another 6% This Year. Here’s What Investors Should Know."},"content":{"rendered":"\n

Home insurance prices continue to rise and could increase by another 6% this year after already rising nearly 20% in the last two years, according to one estimate. A combination of inflation and extreme weather events in some states has fueled the jump in prices, with the average annual rate increasing 19.8% between 2021 and 2023, a <\/span>report from Insurify<\/span><\/a> found.<\/span><\/p>\n\n\n\n

The insurance comparison site estimates that prices will rise 6% to an average of $2,522 by the end of 2024 and could increase further in 2025 if the hurricane season is as bad as <\/span>NOAA projections say it will be<\/span><\/a>. <\/span><\/p>\n\n\n\n

Where Insurance Costs Are Increasing the Most <\/span><\/h2>\n\n\n\n

Insurance rates aren\u2019t the same across the board. Some factors are individual, like the size and age of the home, as well as claims history. Other impacts include where your home <\/span>is located<\/span> and how likely it is to be damaged.<\/span><\/p>\n\n\n\n

Due to these various factors, not everyone will see their premiums increase this year. States more prone to climate catastrophes, such as flooding and wildfires, are more likely to see an increase in rates. Other states, like California, will only see a slight increase due to <\/span>state regulations limiting how much rates can rise<\/span><\/a> in a given year.<\/span><\/p>\n\n\n\n

Louisiana, for example, is expected to have the <\/span>biggest<\/span> increase in rates<\/span> due to hurricane damage. Meanwhile, rates are catching up in Maine, which has seen <\/span>an increase<\/span> in the sea level and subsequent flooding and coastal damage. Florida is also likely to see an increase in prices<\/span>, although<\/span> it already has some of the most expensive insurance in the country, with homeowners paying an average of $10,996 a year for coverage.<\/span><\/p>\n\n\n\n

Here\u2019s a look at the top 10 states where homeowners are bearing the brunt of increased insurance costs.<\/span><\/p>\n\n\n