Homeowners Insurance Premiums Have Risen Up to 43% Since 2018— And Insurers Are Now Dropping Policies At An Alarming Rate

Homeowners insurance premiums have risen sharply across the United States over the past several years, while insurers are increasingly choosing not to renew policies as climate-related risks and higher rebuilding costs reshape the market.

A report released Wednesday by the National Association of Insurance Commissioners found average homeowners insurance premiums increased faster than inflation between 2018 and 2024 in every major U.S. region.., premiums climbed 18% in the Northeast, 25% in the Midwest, 27% in the Southeast and 43% in the West, while insurer-initiated policy nonrenewals also increased significantly during the period.

Rising Costs Are Reshaping the Market The NAIC said the Southeast recorded the nation’s highest average annual premium at $1,818 in 2024, while the Northeast remained the least expensive at $1,396.

The report also found nonrenewal rates per 1,000 policies rose nationwide, increasing between 96% in the Southeast and 216% in the West as insurers reassessed their exposure to growing risks.

There were about 103 million homeowners insurance policies in force across the U.S. in 2024.

Jeffrey Czajkowski, director of the NAIC Center for Insurance Policy and Research, said catastrophic weather events including hurricanes, wildfires, severe convective storms and winter storms are occurring more frequently and placing greater pressure on insurers and consumers alike.

Peter Kochenburger, a visiting professor of law at Southern University Law Center, told CNBC that climate risk is the primary driver behind rising premiums, while inflation has made repairing and rebuilding homes substantially more expensive.

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A July study by climate-risk modeling firm First Street found severe convective storms, including tornadoes, hail and damaging winds, overtook hurricanes as the world’s costliest insured natural disasters in 2025.

The research estimated the United States accounted for $68 billion of the $82 billion in global insured and uninsured losses tied to those storms, with insurers responding by raising premiums in many high-risk regions.

Housing affordability has also remained under pressure from elevated borrowing costs and limited supply.

Freddie Mac data recently showed mortgage rates climbing to their highest levels in nearly a year, while Redfin estimated the U.S. continues to face a housing shortage of roughly 4.7 million homes.

Higher borrowing costs, rising construction expenses and constrained inventory have continued to weigh on prospective buyers.

The pressure has also prompted policymakers to respond.

This week, Illinois Gov.

JB Pritzker (D-Ill.) signed legislation giving state regulators greater authority to review and challenge insurance rate increases, arguing consumers deserve more transparency as affordability concerns continue to grow.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published editors.

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