Homeowners insurance premiums are rising across much of the country as climate risks intensify, rebuilding costs stay elevated, and property values keep climbing. Nearly half of policyholders say their rates went up over the past year, the fastest pace in more than a decade according to J.D. Power. Over five years, average premiums have jumped close to 70% by ICE Mortgage Technology’s count, with typical annual costs for mortgaged single-family homes near $2,370. The squeeze is changing behavior, from shopping around to scaling back coverage, and even tempting some households to consider going without insurance despite serious financial risk.
What is driving the surge in premiums
From the industry’s perspective, prices reflect two realities, the probability of loss and the cost to settle claims. Both have been moving in the wrong direction for consumers. Climate exposure has increased the frequency and severity of disasters like hurricanes, wildfires, hail, and inland flooding. At the same time, rebuilding remains costly, with materials such as lumber and steel still pricier than before the pandemic, which pushes up claim payouts. Add in a run-up in home values, with the national median sale price hovering near the 400,000 dollar mark, and the cost to repair or replace a home is simply higher, which feeds directly into premiums.
Carriers and analysts point to these twin pressures to explain the rapid pace of increases seen in 2024 and 2025. Loan analytics data show some metro areas absorbing especially steep hikes this year. In Los Angeles, for example, average premiums rose roughly 19.5% year over year. While the specifics vary market by market, the broader pattern is clear, more risk and more expensive repairs mean higher rates.
Where rates are climbing the most
Premiums are rising nationwide, but geography matters a lot. Risk-prone regions see the biggest bills and the sharpest jumps. Gulf and Atlantic coastal states that face hurricanes and storm surge, such as Florida and Louisiana, carry some of the highest average premiums in the country. Parts of Texas and Oklahoma have been hit with repeated severe convective storms, including hail and high winds, which raise costs as well. In the West, wildfire corridors in California and the Mountain West, including areas of Colorado, face mounting risk that filters into pricing and availability.
California stands out in 2025 for notable year-over-year spikes, with large metros like Los Angeles posting double-digit gains. Localized hazard factors drive these differences. Homes near wildland fuel loads or in wind corridors often see higher base rates. In coastal communities, wind and water risks dominate. Even within the same metro area, rates can diverge based on elevation, construction type, roof condition, and proximity to fire response or flood zones.
How homeowners are reacting
Faced with rising bills, many homeowners are shopping for new carriers, raising deductibles, or trimming endorsements to manage costs. J.D. Power research finds satisfaction slipping as prices climb, with many customers feeling they pay more and get less. A Realtor.com survey captures the strain more starkly. Nearly 60% of respondents said they might consider going without coverage if the price becomes unaffordable. That sentiment underscores the pressure on household budgets, but it also raises alarms among financial experts who warn that dropping coverage exposes families to potentially ruinous losses.
Going uninsured is rarely a viable option. One major fire, wind event, or pipe burst can erase years of savings and jeopardize home equity. Lenders usually require active coverage if you have a mortgage, and even those who own their homes outright take on significant risk without a policy. With severe weather trending upward and repair costs still high, the odds and the potential dollar losses are not on the homeowner’s side.
Ways to help manage your premium
You cannot change the weather, but you can influence how your home fares in it and how insurers view your risk. Start by comparing quotes from multiple carriers, especially if you live in a market where several companies still write policies. Differences in underwriting appetite and discounts can translate into meaningful savings. Review your coverage limits to make sure they reflect realistic replacement costs, then consider whether a higher deductible makes sense to reduce your premium, keeping enough cash on hand for smaller claims.
Risk mitigation can also move the needle. In wildfire zones, creating defensible space, hardening the home with ember-resistant vents, and avoiding flammable landscaping can reduce exposure and may qualify you for discounts where available. In storm-prone regions, impact-rated roof coverings, hurricane shutters, reinforced garage doors, and roof tie-downs can limit wind damage and improve insurability. Upgrades that reduce losses from water, such as automatic water shutoff valves, and safety features like monitored smoke alarms can help too. Insurers and the Insurance Information Institute emphasize that homes perceived as better protected against local hazards tend to receive more favorable pricing over time.
Bundling home and auto, maintaining strong credit, and documenting improvements with photos and receipts can further support your case at renewal. If your rate jumps unexpectedly, ask your agent to review your discounts, roof age on file, and any changes in risk scoring. Small data errors, like an incorrect roof year or missing mitigation credits, can cost you real money.
Homeowners insurance costs are likely to remain elevated as climate risks and rebuilding expenses continue to pressure the system. The increases are not uniform, and some states face steeper climbs than others, with California, Florida, and Louisiana among the most affected. For most households, the best strategy is to stay insured, shop carefully, and control what you can by reducing your property’s vulnerability. That approach will not stop broader market trends, but it can keep your coverage affordable enough to protect what is often your largest investment.
