Home Insurance Rates Surge 38% Nationwide Since 2019 — Arizona, Nebraska, Illinois See Biggest Increases

Rising home prices, inflation and the high cost of building materials contribute to skyrocketing insurance rates, with Americans paying 38% more to protect their homes than in 2019.

Arizona saw the biggest increase, with rates jumping 62%, according to a recent LendingTree's State of Home Insurance in 2024 report. Nebraska followed Arizona, which saw 59.9% higher insurance rates, and Illinois, with costs rising 56.9%.

The average cost of home insurance in the U.S. is $2,478 per year, but it's more than double that in Oklahoma, where the average price is $5,478 and Nebraska at $5,363.

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The lowest average annual insurance costs are in Hawaii, at $549; New Hampshire, at $1,096; and California, at $1,121. These states have low insurance rates because of low approved rate changes this year. The rate was 4.2% in Hawaii, compared to 5.5% in New Hampshire and 8.8% in California.

In addition to increased home prices and building materials, climate contributes to the rate spike as insurers increase their premiums to combat rising claims. Wind and hail account for more than 40% of homeowners insurance claims, followed by 24.1% for fire and lighting claims and 23% for damage and freezing.

Fire and lighting had the largest average claim amount at $83,519. Liability claims came in second with an average loss of $25,323.

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"Insurance companies have to repair more homes, and it's more expensive to rebuild each one than it might have been just five years ago," Lending Tree home insurance expert and licensed insurance agent Rob Bhatt said. "When their costs of paying claims go up, they turn around and raise our rates. This is affecting prices for just about everyone, including people who haven't been directly impacted by a natural disaster, or at least not yet."

10 States With Biggest Increases In Home Insurance Rates, 2019-2024

Source: LendingTree analysis of RateWatch from S&P Global data

So far this year, home insurance rates have increased 5.8% across the U.S., with Nebraska (13.3%), Illinois (12%) and Montana (11.6%) seeing the biggest jumps from January through March.

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