As insurance companies raise home insurance premiums in high-risk states, homebuyers have another factor to consider when weighing up the affordability of a home purchase, a new report from insurance comparison website Insurify reports. Insurify analyzed data for average home insurance cost by state for $300,000 dwelling coverage across the U.S. and compared local wage growth with rate increases to determine which states are the most or least affordable for home insurance. Florida, Oklahoma, and Mississippi top the list of the 10 states with the highest average insurance premiums in 2023.
Florida saw severe weather damages exceeding $15 billion in 2023, including $3.6 billion from Hurricane Idalia.[3] Several major home insurers stopped renewing certain policies or left Florida entirely, and rates increased by 14% in 2023 — making Florida the most expensive state for home insurance.
Due to high hurricane risk, Farmers [Insurance] stopped offering home, auto, and umbrella policies in July 2023.[4] Progressive also didn’t renew approximately 100,000 high-risk home policies. With few private options for homeowners insurance, more than 1.4 million homeowners have turned to the not-for-profit Citizens Property Insurance Corp., Florida’s insurer of last resort.
Advertisement
Related Stories
Housing Markets
5 Housing Markets That Would See a Huge Increase in Homeownership if Mortgage Rates Dropped
Spokane, Wash., would experience an 11.4% increase in affordability if rates dropped to 6%
Affordability
Survey Shows Buyers Have Homebuying Regrets
More than 80% of respondents have regrets about their home purchase and 50% of upcoming buyers would consider forgoing using an agent
Awards
4 Housing Affordability Organizations Awarded 2024 Ivory Prize
Ivory Innovations will provide $300,000 in total prize money to support winners’ initiatives