Map Shows 10 States Hit Hardest by Surge in Home Insurance Prices

A new report published by LendingTree found that home insurance rates continue to surge nationwide, with no state seeing a decrease in its average rates last year.

Ten states were hit particularly hard, seeing rate increases above 15 percent in 2024, which can amount to hundreds of dollars in additional spending for homeowners each year.

Newsweek reached out to LendingTree via email for comment on Thursday.

Why It Matters

The report highlights the concerning trend of surging home insurance rates across the nation. The threat of more frequent and more severe natural disasters has contributed to skyrocketing home insurance rates in recent years.

The most recent data from LendingTree shows that the average home insurance annual premium is $2,801. As insurance prices continue to rise, some homeowners are finding they are unable to spare the cost, with nearly 14 percent of homeowners claiming they are uninsured, according to the new report.

What To Know

LendingTree analyzed home insurance rates in each state from 2019 to 2024 and found in its report that no state is exempt from escalating prices.

It also found that rates rose 11.4 percent last year, the highest figure among years in the studied period. Over the six years, Colorado was the state with the biggest hike, with a 76.6 percent increase from 2019 to 2024. But when just looking at last year’s data, Montana and Nebraska tied for states with the biggest surge in insurance prices.

The states hit hardest by home insurance price surges last year were:

• Montana: 22.1 percent
• Nebraska: Also 22.1 percent
• Minnesota: 19.5 percent
• Washington: Also 19.5 percent
• North Dakota: 18.2 percent
• Iowa: 17.7 percent
• Utah: 17.4 percent
• Missouri: 16.4 percent
• South Dakota: 15.9 percent
• Wisconsin: 15.5 percent

Surging home insurance prices are cause for concern among homeowners, with some taking to social media to express their disbelief at the prices.

“What are you all paying for home insurance? Ours just jumped to $6,500 per year—in Nebraska—over 50% increase from last year!!! We are not in a flood zone,” one person posted on X, formerly Twitter, earlier this month.

Average annual home insurance prices are highest in Oklahoma, at more than $6,000 per year, which is almost 120 percent the national average. Prices are lowest in California, at roughly $1,200 a year, according to the LendingTree report.

What People Are Saying

LendingTree home insurance expert and licensed insurance agent Rob Bhatt said in the report: “Insurance companies have been raising their rates to keep up with their escalating expenses. The early 2020s saw an uptick in natural disasters and inflation. Insurance companies have had to rebuild more homes than normal, and the cost of rebuilding each one has become more expensive.”

Bhatt added: “Home insurance companies had significant expenses in 2023. In seven states, they paid out more in claims than they earned in premiums. Like companies in other industries, they need to earn more than they spend to remain solvent. Unfortunately, they often have to raise their rates to accomplish this goal.”

What Happens Next

Home insurance is bound to continue providing a financial hurdle for homeowners across the nation. LendingTree experts urge homeowners to shop around to find the best prices, increase their deductibles to get a better premium and perform minor repairs without involving insurance.