9% Predicted Jump in Home Insurance Rates in 2023 

25 Apr

According to a new report by online marketplace Insurify, average homeowner insurance premiums are headed up again in 2023. The report predicts that the average cost of homeowners insurance could jump up 9% which translates into about $150 increase for most homeowners.

The pain will not be distributed equally, homeowners in some states will see premiums go up much more than 9 percent. Florida, a state that currently (and for years now) is the most expensive state for home insurance, could see shocking increases that could hit 66%, resulting in premiums that could average $8,000 for in 2023. 

While inflation can be blamed for some of the price hikes, climate change and rampant insurance fraud (particularly in Florida) are also responsible for price hikes. 

According to Insurify, a Massachusetts-based insurance marketplace, the average annual premium for homeowners insurance could hit $1,784 in 2023, which is a 9% increase from 2022. This is on top of a 7% increase in 2022. 

“The same inflationary pressures that are driving up your grocery bill are now driving up your homeowner insurance rates,” Colleen Finn, a managing director at the Boston-based insurer Plymouth Rock, advised in the report. “It is costing more and taking longer to repair your home, increasing the average cost per claim and ultimately the cost of homeowners insurance for everyone.”

In addition to inflation, insurance experts claim that more catastrophic weather and natural disasters which are a direct result of climate change are driving home insurance premiums higher.

Currently, the average premium for homes located in very high risk rated areas comes in at $3,379, compared to premiums for houses located in more low risk areas average $1,387, according to Insurify’s estimates.

States with the highest home insurance premiums

Despite the fact that the nationwide average premium is closing in on $1,800, many states are facing averages that are much more expensive. Here are the 10 most expensive states for homeowners coverage according to Insurify:  

10. Nebraska: $4,064

9. Texas: $4,067

8. Colorado: $4,177

7. South Dakota: $4,343

6. Kentucky: $4,370

5. Kansas: $5,005

4. Alabama: $5,102

3. Louisiana: $5,353

2. Oklahoma: $6,853

1. Florida: $7,788

These numbers show that the average homeowners premium in Florida is currently 437% higher than the estimated 2023 national average of $1,784.

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