Navigating the Rising Rates of Homeowners Insurance

Unpacking the factors driving the 55% increase in home insurance premiums since 2019

Homeownership is often seen as a cornerstone of financial stability, but for many Americans, the dream comes with a hefty price – the rising cost of homeowners insurance. The latest data reveals a startling trend: a 55% surge in premiums since 2019, with an almost 19% spike in 2023 alone. According to a report from Guaranteed Rate Insurance LLC, the national average premium for homeowners’ insurance rose from $1,450 in 2022 to $1,723 in 2023, an increase of $273 per policy, or 18.85%.  While inflation has slowed down, insurance rates continue to climb.  What is driving this surge, and what can homeowners do to mitigate these rising rates?

Impact of Natural Disasters

One of the primary drivers behind the escalating cost of homeowners insurance is the increase in the frequency and severity of natural disasters. Hurricanes, floods, tornadoes, and wildfires have wreaked havoc across the country, leading to a surge in insurance claims. For further insights into protecting your home from windstorm-related damages and understanding the nuances of windstorm insurance, be sure to explore our comprehensive blog on the topic here.

In the Western United States, drought and heatwaves have fueled unprecedented wildfire seasons, while migration into flood-prone and wildfire-risk regions has further compounded the issue.

Soaring Construction Costs

Adding to the financial burden, construction costs have soared in recent years. Residential building costs have skyrocketed by almost 28% since 2020, with labor costs jumping nearly 21%. These increased costs translate into higher repair expenses for insurers, which in turn, are passed on to homeowners through higher premiums.

States Bearing the Brunt

Certain states have borne the brunt of these escalating premiums more than others. Louisiana leads the pack, with an average premium of $270.50 in February 2024, marking a staggering 63% increase from January 2023. Nebraska follows closely behind, with an average premium of $395.41, reflecting a 61% surge during the same period. Other states experiencing significant hikes include Colorado, Arizona, and Illinois.

Navigating the Surge

Despite the grim outlook, homeowners do have options to mitigate the impact of rising premiums. RMC Group, a leading insurance provider, offers a range of strategies to help homeowners navigate these turbulent waters. From exploring alternative coverage options to optimizing existing policies, our team of experts stands ready to assist homeowners in safeguarding their most valuable asset.

In the face of mounting challenges, proactive measures can make all the difference. By understanding the factors driving the surge in homeowners’ insurance rates and leveraging the expertise of trusted professionals, homeowners can secure their financial future in uncertain times.

To learn more about navigating rising insurance premiums, contact RMC Group at or call 239.298.8210.