Homeowners insurance prices soared in these states in 2024

Private homeowners insurers eased up on Florida and Texas residents last year while putting the pressure on Midwesterners. 

The two storm-battered states had some of the lowest weighted average effective rate increases for residential coverage last year, according to data from S&P Global Market Intelligence. Between each state's 10 largest carriers, rates rose 3.4% in Texas and just 1% in Florida.

Nebraskans, meanwhile, endured the highest homeowners insurance rate increases with an average escalation of 22.7%, according to approved rate filings through Dec. 27, 2024. Homeowners also saw premiums rise over 20% in Montana, Iowa, Minnesota, Utah and Washington. 

The data excluded policies for mobile homes, renters and condominiums. It also didn't include any rate hikes by the 32 state insurers of last resort. That discrepancy explains the conundrum for Floridians, who increasingly rely on the state's Citizens Property Insurance Corp. which is seeking a 13.5% raise in rates this year. 

The extensive analysis didn't estimate the dollar costs for homeowners. Insurance has become an increasingly weighty homeownership expense, alongside property taxes, high sales prices and elevated mortgage rates that continue to keep borrowers sidelined. 

S&P calculated a 10.4% nationwide weighted average effective increase for homeowners. That's only a slight relief from 2023, when rates for the nation's homeowners rose 10.4%.

The industry's most recognizable brands all sought rate advances well into double-digit percentages across the country. Madison, Wisconsin-based American Family Insurance Group had the biggest companywide increase among its peers at 16.5%, according to S&P.

Liberty Mutual secured double-digit rate raises in three dozen states, with an average 14.5% rate hike. Progressive also tallied a companywide 13.5% increase, including the highest statewide jump among S&P's data with a 50.8% spike for Virginia homeowners.

Farmers had the largest calculated change among major insurers last year, with a 53.5% rise in Maryland.

States with fewer catastrophic weather events saw muted increases, like Nevada where homeowners saw just a 4.3% average rate jump. Californians saw their homeowners coverage rise a combined 13.6% last year, although they pay relatively less for their policies than other states.

The Golden State's market could get cloudy however following the recent Los Angeles fires. Private insurers are expected to take losses well into the billions of dollars, and the fallout may lead to carriers to raise rates again, or reduce coverage options in at-risk wildfire zones, a separate S&P analysis suggested.