Homeowners Insurance Prices Are Rising the Fastest in This Southern State

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Florida’s homeowners insurance prices have soared over the past two years. Read on to find out how you can potentially lower your insurance premium. 

If you’re a homeowner, it’s probably no surprise that the cost to insure your home has climbed over the past couple of years. On average, homeowners insurance is now 35% more expensive than it was two years ago, according to a Policygenius survey.

But there are a couple of places where the cost has skyrocketed far more than in other locations. And the biggest increase by far has been in Florida — which has seen homeowners insurance prices soar 68% over the past two years. Data from USA Today shows the annual cost of homeowners insurance is between $1,117 to $2,950.

Here’s why prices are rising rapidly across the country and what you can do to help lower your homeowners insurance premium.

Why homeowners insurance is so expensive now

It’s easy to assume that the rapid increase in inflation over the past couple of years is causing homeowners insurance premiums to go up. And while that may be part of the reason, it’s certainly not the whole picture.

Here’s why insurance prices are surging in several locations across the country, according to Policygenius:

More climate-related disasters: The number of weather events that caused at least $1 billion in damage more than doubled between 2010 and 2019 compared to the previous decade.Construction prices have soared: The cost to fix and replace damaged homes has risen quickly because of inflation and supply-chain issues. Residential construction prices have spiked 34% since March 2020.Insurance companies have left some markets: Insurers have pulled out of many states because it isn’t financially viable, and the ones that stay have increased prices.

How to help lower your homeowners insurance costs

While there’s no getting around the fact that insurance prices have spiked across the country, there are a few things you can do that may help lower your costs.

First, you can assess your coverage to ensure you’re not paying for anything you don’t need. Some potential areas to look at are personal property insurance, liability coverage, and loss of use. Taking a few minutes to figure out whether you need these optional coverage options could help you reduce your insurance premiums.

Second, compare quotes to find the best homeowners insurance for you. Insurance companies have different methods of setting their prices, offer varying discounts, and may have criteria for issuing policies.

Only 13% of respondents regularly shop around for homeowners insurance. But for those who switched providers, 39% said they did so because they got a better price, according to a Consumer Reports survey.

Shopping around may help you find cheaper homeowners insurance, and, if nothing else, looking at a few quotes will show you whether you’re overpaying for your current policy. You can also check out a list of the cheapest homeowners insurance by state.

If you shop around and can’t find anything cheaper, it may be worth looking at your current policy and deciding what you can change. That may mean increasing your deductible or taking a closer look at the potential discounts your insurance provider offers.

Unfortunately, there isn’t any indication that homeowners insurance prices will come down soon. That’s why it may be more important than ever to find ways to lower your premium right now. If you’re struggling to pay your insurance premiums, consider assessing some of the minimum requirements for homeowners insurance to see if you can scale your coverage back.

Our picks for best homeowners insurance companies

There are many homeowners insurance companies to choose from. We’ve researched dozens of options and short-listed our favorites here. Looking for a green build discount or easy bundle policies? Want an easy-to-use interface? Read our free expert review and get a quote today.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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