Homeowners across the US are being told to brace for another uptick in home insurance prices, as a new report points to the possibility of a 6% nationwide increase by the end of the year – with Florida, Louisiana and Oklahoma among the states hardest hit.
According to Insurify, a Massachusetts-based virtual insurance agent, rates will continue to rise in 2024 as the industry remains burdened by the impact of climate change and recent economic pressures.
US home insurance prices have increased 20% over the past two years, Insurify said. An additional 6% hike in average premiums would lead to an average national rate of $2,522 annually.
The steepest increases are anticipated in Florida, Louisiana, and Oklahoma, which already have some of the highest insurance premiums in the nation.
Louisiana alone is projected to see a 23% increase, according to Insurify. This would bring the state’s annual average rate of $6,354 to $7,809.
Maine and Michigan are also poised for double-digit hikes at 19%, and 14%, respectively.
Meanwhile, Florida could see an additional 7% increase, which would bring its average rate to $11,759 annually.
“It’s possible that the highest-risk areas will become uninsurable,” said Betsy Stella, Insurify’s vice president of carrier management and operations. “However, where there’s demand, typically a supplier will appear. The question will be, at what cost?”
Insurify’s report also offered insights on the home insurance crisis that has been unfolding in Florida in recent years.
Over the last couple of years, Florida has been battered by major hurricanes that led to record-breaking losses for insurers. Some companies became insolvent as a result of these losses, while others have chosen to limit their exposure in the state.
Amid this turmoil, Florida residents paid the highest home insurance rates in 2023, averaging $10,996 annually.
Additionally, six out of the 10 most expensive cities for home insurance are located in South Florida, according to Insurify.
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