During the past year, the average cost of home insurance in the U.S. increased 12%, according to Insurify. The insurance comparison website also reported that more frequent and severe storms coupled with higher repair and replacement costs forced premiums up in recent years. The home insurance market is currently in the process of a correction that will continue through 2024, according to Bill Martin, president and CEO of Plymouth Rock Home Assurance. "There is probably another year and a half of this to come, and 2024 will not be a reversal of anything that has happened in the last two years," Martin told PropertyCasualty360.com. "It should be maybe more modest compared to what has happened in the past couple of years though." In the final quarter of 2023, home insurance rates for properties under $1 million in value were up 4.3%, while rates for homes valued above $1 million increased 6.7%, according to MarketScout Corp., a Novatae Risk Group company. "We continue to see the largest composite rate increases in homes over $1,000,000 in coverage A value, most likely because this includes all of the large homes in catastrophe-exposed locations," Richard Kerr, CEO of Novatae Risk Group, said in a release. "While the composite rate for large homes was 5.9% for 2023, some homeowners in tough areas or with prior losses are experiencing rate increases as high as 50%." Although home insurance costs are growing across the nation, policyholders can take steps to reduce their premiums such as replacing older roofs to protect against leaks and installing home security systems. The above slideshow reviews 12 factors insurance carriers use when calculating a home insurance premium, according to the National Association of Insurance Commissioners. Related: |

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