Home insurance premiums grew 21% year-on-year

The average cost of home insurance increased 21% from May 2022 to May 2023, according to an analysis from Policygenius, which found that 94% of homeowners saw rate increases at renewal.

The review which included 17,401 active policies quoted for renewal from 44 states and Washington, D.C. Among the locations in the study, 26 states saw an average increase of more than 20%. In comparison, no state saw an average premium increase above 19% from May 2021 to May 2022, according to Policygenius.

Homeowners in East Coast states saw the smallest premium increases at renewal this year, with Vermont’s 10% increase the lowest registered among the states studied. Other states with slower premium growth — below 14% — include New York, Nevada, Maine, New Hampshire and California.

It is important to note that while California’s home insurance rates are seeing some of the slowest-growing premiums in the country, this is largely because California regulators have been extremely reluctant to approve rate increases in recent years. In 2019, there were 71 rate increases approved in the state, but 2022 saw just 29 rate increases approved, according to Policygenius.

Looking back to 2021 shows that home insurance costs have increased, on average, by 35%, Policygenius reported. During that two-year span, Florida saw the highest premium increases, growing an average of 68%. Other states that saw home insurance costs grow 45% or more include New Mexico, Colorado, Idaho and Texas.

During that two-year stretch, Vermont registered slowest premium growth, increasing just 7%. Other states that saw relatively slower growth, 16% or below, were Wisconsin, Massachusetts, Nevada and New Hampshire, according to Policygenius.

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