A new report reveals that U.S. homeowners insurance rates have surged by 40.4% over the past six years, with the most significant hikes occurring in the last two years.
LendingTree’s 2025 State of Home Insurance Report indicates that rates remained relatively stable from 2019 to 2021, with modest increases of 2% in 2019, 2.1% in 2020, and 3% in 2021. However, starting in 2022, rates began climbing more sharply, rising 5.4%, followed by 11% in 2023 and 11.4% in 2024.
The average annual cost of homeowners insurance in the U.S. has reached $2,801. According to the report, the priciest states for coverage are Oklahoma at $6,133, Nebraska at $5,912, and Kansas at $5,412.
The report shows that Hawaii has the lowest average homeowners insurance rate at $632, followed by California at $1,260 and Vermont at $1,339.
The states experiencing the highest rate increases from 2019 to 2024 were Colorado (76.6%), Nebraska (72.3%), and Utah (70.6%).
Colorado’s rise in rates was partly driven by a surge in billion-dollar natural disasters, totaling 24 events between 2019 and 2024. Nebraska faced 25 such catastrophes, while Utah has experienced increasing losses from disasters in its wildfire-prone regions, according to the report.
Other key findings in the report:
- In 2024, Montana and Nebraska experienced the largest home insurance rate increases, each rising by 22.1%, while Minnesota and Washington saw rates climb by 19.5%.
- The states with the smallest rate increases in 2024 were Florida (1.7%), Texas (3.4%), and New York (3.8%).
- The states with the lowest cumulative rate increases from 2019 to 2024 were Vermont (12.2%), Alaska (12.9%), and Maine (17.9%).
LendingTree’s analysis draws on home insurance data from Quadrant Information Services, gathered from insurer filings, as well as RateWatch from S&P Global. The study assumes standard coverage amounts and deductibles unless specified otherwise.
The coverages and deductibles applied were as follows:
- $400,000 dwelling coverage
- $40,000 other structures
- $200,000 personal property
- $80,000 loss of use coverage
- $100,000 liability
- $5,000 medical payments
- $1,000 deductible
