Rising Home Insurance: 10 States Facing Family Exodus

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These 10 states could be forced to leave by rising home insurance rates

Diane Tomb: There will be “a lot of change” in housing prices by the end of this year

Diane Tomb, CEO of the American Land Title Association, discusses her thoughts on housing costs and commercial real estate. She also discusses mortgage rates.

Mortgage rates have risen dramatically and home prices have soared in the last year, pushing millions of American families out of their reach.

Home insurance rates are now another barrier to home ownership.

According to a report by Insurify (an insurance comparison website with headquarters in Massachusetts), the average cost of home coverage for a $300,000.00 property in the U.S. will increase 12% to $1,770.00 per year in 2023.

Home insurance costs more in areas affected by climate catastrophes and severe weather. The report stated that as destructive weather events increased in frequency and severity, insurance companies have become less profitable and are unable to cover more areas.

As more insurance companies leave states such as California and Florida, the cost of homeownership will increase.

Here are the places where you will pay the most for your home insurance.

Florida

Florida has the highest average cost of home insurance in the country, rising by $9,213 per year. This is 421% more than the national average.

Waterfront homes near Naples Pier, Naples, Florida on February 13, 2024.

In 2023, rates will increase by 14% as major insurers stop renewing policies or leave the state altogether due to hurricane concerns. Last year, severe weather damage in Florida exceeded $15 billion.

Oklahoma

Oklahoma home insurance costs on average $4,782, which is 170% more than the average American. Oklahoma Insurance Commissioner Glen Mulready blamed the rise in premiums on the weather and inflation for the 24% increase.

Thunderstorm in Tulsa (Oklahoma)

After a storm on May 27, 2020, in Tulsa (Oklahoma), the sky started to clear.

Insurify’s report stated that the median home value in Oklahoma was nearly 50% less than the national average. However, insurance rates are surging and homeownership is not as accessible as property values would suggest.

Mississippi

Last year, homeowners in Mississippi paid an average of $23 percent for their insurance, and the cost was $4,017. This is approximately 127% more than the national average.

Insurify says the increase in claims is probably the result of “unprecedented and historically destructive severe weather”, which swept through the Deep South this summer.

In 2023, insurance rates in the State increased by 433% more than the income in the State.

Texas

Texas insurance rates will rise 18% by 2023. This is 452% higher than the wage growth in Texas and 124% more than the national average.

Dallas, Texas after a winter storm

Grounds at Margaret Hunt Hill Bridge Park in Dallas after a storm on Thursday, February 2, 2023.

Last year, the Lone Star State was also hit by several severe weather events. 16 of them caused damage totaling more than $1 billion each.

In Texas, the average cost of home insurance is now $3,969

Kansas

Kansas’ average home insurance rate jumped 19% to $3,245 last year. This is 83% more than the national average.

In July, severe weather conditions such as storms, high winds, tornadoes, and flooding also contributed to the increase. Kansas is also susceptible to wildfires.

Georgia

Georgia insurance rates will reach $2,173 by 2023. This is a 17% increase from the previous years. According to Labor Department statistics, Georgia’s median household income rose only 2.3% in the past year.

A family inspects the damage caused by a tornado in Georgia

The Owens Family inspects the damages to property and homes after a tornado struck on March 26th, 2023 in West Point.

Georgia suffered 12 natural disasters in the last year, which cost the state approximately $38 billion.

Nebraska

The average cost of homeowner insurance in Nebraska is almost twice that of the national average. In 2023, the problem became worse, as the average annual rate rose by 14%, to $3,519.

Nebraska also experienced severe weather events in 2014, including blizzards during the winter months and flash floods or tornadoes during the summer.

Massachusetts

Massachusetts’ home insurance rates are lower than the average national rate. According to the study, however, insurance costs in Massachusetts increased at a rate 582% greater than the income. This was the largest gap in the nation between wage increases and insurance rates last year.

The average annual insurance cost in New York is $1,649, 7% less than the national average.

New York

In 2023, the average insurance rate in New York will be $1,942, which is 10% more than the national rate.

New York homes are blanketed in heavy snowfall

On December 25, 2022, heavy snow covered the yard and surrounding area of a home in Amherst (Erie County), New York.

In addition to the overall cost of living, severe weather events such as flooding and rainstorms which will shut down a part of New York City by 2023 are also a factor. Upstate New York also suffers from damaging and fatal blizzards, which can cause property damage of thousands of dollars.

Colorado

In Colorado, the average cost of home insurance is $3,308, a substantial increase over previous years.

Aerial view of Denver’s skyline.

This is 87% more than the national average.