Homeowners insurance outlook 2024

The national average cost for homeowners was $1,602 annually

Updated March 7, 2024

Table of contents:

Rising rates
State averages
Limited coverage
Ways to save
Methodology

The past year saw some dramatic changes for homeowners. The real estate market and mortgage rates made buying a home more expensive. And from the insurance side, insurance rates saw increases.

Housing expenditures are often people's largest budget category. With 65.8% of Americans owning homes and the vast majority (more than 90%) carrying some type of home insurance...this affects a lot of people.^[1]

With 2024 well underway, what do our experts predict for homeowners insurance in the new year? Here's our breakdown:

Prices will likely continue to rise due to inflation and weather events.
Pricing rises will vary dramatically based on location.
Some geographies may continue to find it hard to find home insurance.

Average cost of home insurance is rising

The average annual cost to insure a home in the United States is $1,602 in 2024. That's a 2% increase over the previous year, but an 18% increase from five years ago.

We predict a continued increase in 2024. Here are some of the reasons why:

Inflation and other economic factors. Material goods (lumber, roofing materials, etc.) and construction prices have increased with inflation, making claims more expensive for insurance companies.^[2]
Extreme weather and natural disasters. From hurricanes and wildfires to flooding, extreme weather has impacted homeowners across the country, leading to rising insurance costs.
Government regulation. Insurance is a state-regulated industry, meaning the government can control how high insurance companies can raise rates. When it's a long time between rate increase approvals, it can lead to sudden jumps.

Increases vary based on where you live

In addition to individual factors like your claims history and features of your home, where your house is located is one of the biggest factors in how much you pay.

The states with the highest annual premiums are Nebraska and Oklahoma. Nebraska had average annual premiums almost three times the national average, in part due to hail and volatile weather patterns.
The states with the lowest premiums are Hawaii and Delaware, both with annual premiums one-sixth of the national average.
13 states now pay an average of more than $2,000 a year in home insurance premiums.

Annual home insurance premiums by state

State	Avg Annual Premium
Alabama	$2,162
Alaska	$1,234
Arizona	$1,477
Arkansas	$2,884
California	$1,072
Colorado	$2,393
Connecticut	$1,187
Delaware	$681
Florida	$1,836
Georgia	$1,688
Hawaii	$326
Idaho	$1,044
Illinois	$1,760
Indiana	$1,547
Iowa	$1,719
Kansas	$3,245
Kentucky	$2,074
Louisiana	$2,130
Maine	$914
Maryland	$1,347
Massachusetts	$1,260
Michigan	$1,234
Minnesota	$1,548
Mississippi	$2,603
Missouri	$2,256
Montana	$2,342
Nebraska	$4,598
Nevada	$787
New Hampshire	$745
New Jersey	$773
New Mexico	$1,571
New York	$1,015
North Carolina	$1,472
North Dakota	$1,955
Ohio	$1,172
Oklahoma	$4,197
Oregon	$884
Pennsylvania	$904
Rhode Island	$1,162
South Carolina	$1,488
South Dakota	$2,459
Tennessee	$1,835
Texas	$2,470
Utah	$905
Vermont	$708
Virginia	$1,043
Washington	$1,108
Washington, D.C.	$942
West Virginia	$1,356
Wisconsin	$909
Wyoming	$1,288

Fewer options in some places

Much as where your home is located affects how much you pay for home insurance, it can also affect the insurance options you have.

In some states, the proliferation of weather events has meant insurance companies are not writing new policies. We have a more specific article on this ongoing crisis and what is being done, but suffice it to say, we don't predict 2024 will bring an end to the root cause: extreme weather caused by global climate change.

This is particularly true in states like California, Florida and Louisiana due to wildfires, hurricanes and flooding respectively. As insurers pull out of high-risk states it can make it harder to access insurance in places that badly need it.

What if you can't find insurance where you live?

Your options are to investigate high-risk or surplus lines insurance options or state-mandated insurance programs like your state's FAIR plan. These are designed to support people in high-risk areas that can't find insurance on the traditional market.

How to save on home insurance

Short of selling your house and trying to find a place immune to climate change, how can you possibly save on home insurance? Here are some ways:

Bundle your home/renters/condo insurance policy with your auto policy for savings.
Consider all possible discounts that might apply to you.
Shop around to compare options on at least an annual basis.

The Zebra’s Dynamic Insurance Rating Tool data methodology

The Zebra’s Dynamic Insurance Rating Tool for home and auto insurance rates utilizes the latest ZIP code-level rate filings from across the U.S., sourced from Quadrant Information Services and S&P Global. These filings, typically updated annually or biennially by insurers, are verified through Quadrant’s QA process and then integrated into The Zebra’s estimator.

The displayed rates are based on a dynamic home and auto profile designed to reflect the content of the page. This profile is tailored to match specific factors such as age, location, and coverage level, which are adjusted based on the page content to show how these variables can impact premiums.

For a comprehensive understanding, see our detailed methodology.

Sources