Homeowners Insurance Rates Have Gone Up In Every State
If your homeowners insurance premium has been on an upward trajectory for the last few years, you are not alone. A recent study discovered that homeowners insurance rates have gone up in every state over the last decade and in the midwest the rate increases have been pretty dramatic.
The reason for these rate increases varies by state but in most cases, it is more frequent and severe storms that are causing the premium jumps. Tornadoes, hurricanes, fires and hail storms have grown more frequent and severe which has left insurance companies on the hook for the costs of repairs. In most cases those costs are passed onto to customers via higher premiums.
According to insurance industry statistics, roughly two thirds of homeowner claims are because of hail, wind and water damage. Some midwestern states have seen premium increases of 75 percent and more over the last decade.
State By State Increases
The National Association of Insurance Commissioners (NAIC) releases a report every year which looks at the average home insurance rates by state. This data is based on a HO-3 policy which is considered the standard in homeowners insurance.
QuoteWizard examined the data in these reports, looking at the years 2007 to 2016. They calculated the average rate increase by state over the past decade. Here are the top four states when it comes to rate increases:
Oklahoma: This state ranked number one with a premium increase of 78 percent over the last decade. The main reason the Sooner State has seen such a dramatic rate rise is severe weather. Hail and tornadoes have increased over the last decades and according to the Federal Emergency Management Agency (FEMA), Oklahoma has declared 186 natural disasters.
Hail and tornado damage can be very expensive, and insurers pass those costs onto policyholders.
Kansas: Kansas borders Oklahoma and the same bad weather that is hitting the Sooner State often makes its way into Kansas which explains its second place finish. The average premium increase in Kansas hit 71 percent or $644. Tornadoes have been a big factor with the 2007 Greensburg tornados causing over $286 million in damage on its own.
Colorado: A couple of factors explain the cost increase in the Centennial State. Wild fires and hail damage have pushed rates up $620 on average. Wildfires have been a huge issue with the 2012 Waldo Canyon fire, and the 2013 Black Forest fire costing insurance companies over $850 million alone.
Nebraska: This state saw average increases of $595 or a 74 percent over the last decade. In the majority of cases, hail damage accounts for the premium increase. Data from the Insurance Information Institute shows that Nebraska ranks third in the country for hail storms. In 2017, they had 420 hail events
Hail not only damages homes, it can do extensive damage to cars and those claims can be very expensive which is why premiums have gone up.
How the Rest of the States Faired
Arkansas finished off the top five with an increase of $586. When it comes to percentage increases, Kentucky was the top dog with a whopping 88 percent increase or $507. The smallest increase award goes to Nevada, California, Alaska, Washington D.C. and Utah. Nevada ended in the winner’s circle with an average increase of $47.
Please review the full home insurance rankings report below:
| Rank | State | 2007 Premium | 2016 Premium | % Increase | $ Increase |
| 1 | Oklahoma | $1,054 | $1,875 | 78% | $821 |
| 2 | Kansas | $904 | $1,548 | 71% | $644 |
| 3 | Colorado | $826 | $1,446 | 75% | $620 |
| 4 | Nebraska | $807 | $1,402 | 74% | $595 |
| 5 | Arkansas | $762 | $1,348 | 77% | $586 |
| 6 | Louisiana | $1,400 | $1,967 | 41% | $567 |
| 7 | Missouri | $726 | $1,280 | 76% | $554 |
| 8 | Rhode Island | $950 | $1,496 | 57% | $546 |
| 9 | Minnesota | $800 | $1,340 | 68% | $540 |
| 10 | Connecticut | $929 | $1,455 | 57% | $526 |
| 11 | Kentucky | $578 | $1,085 | 88% | $507 |
| 12 | South Dakota | $618 | $1,125 | 82% | $507 |
| 13 | Mississippi | $1,019 | $1,525 | 50% | $506 |
| 14 | Texas | $1,448 | $1,937 | 34% | $489 |
| 15 | Alabama | $905 | $1,386 | 53% | $481 |
| 16 | South Carolina | $808 | $1,285 | 59% | $477 |
| 17 | Georgia | $724 | $1,200 | 66% | $476 |
| 18 | North Dakota | $771 | $1,239 | 61% | $468 |
| 19 | Wyoming | $656 | $1,120 | 71% | $464 |
| 20 | Tennessee | $723 | $1,185 | 64% | $462 |
| 21 | Montana | $700 | $1,130 | 61% | $430 |
| 22 | Massachusetts | $1,023 | $1,451 | 42% | $428 |
| 23 | North Carolina | $674 | $1,098 | 63% | $424 |
| 24 | New Jersey | $776 | $1,174 | 51% | $398 |
| 25 | Florida | $1,534 | $1,918 | 25% | $384 |
| 26 | New York | $936 | $1,309 | 40% | $373 |
| 27 | Indiana | $647 | $1,003 | 55% | $356 |
| 28 | Illinois | $700 | $1,042 | 49% | $342 |
| 29 | Iowa | $610 | $945 | 55% | $335 |
| 30 | Maryland | $692 | $1,022 | 48% | $330 |
| 31 | New Mexico | $667 | $996 | 49% | $329 |
| 32 | Washington | $506 | $822 | 62% | $316 |
| 33 | Ohio | $540 | $850 | 57% | $310 |
| 34 | Virginia | $683 | $966 | 41% | $283 |
| 35 | Idaho | $422 | $703 | 67% | $281 |
| 36 | Wisconsin | $491 | $762 | 55% | $271 |
| 37 | West Virginia | $646 | $917 | 42% | $271 |
| 38 | Maine | $596 | $866 | 45% | $270 |
| 39 | New Hampshire | $699 | $965 | 38% | $266 |
| 40 | Delaware | $559 | $816 | 46% | $257 |
| 41 | Pennsylvania | $689 | $927 | 35% | $238 |
| 42 | Michigan | $721 | $952 | 32% | $231 |
| 43 | Vermont | $704 | $898 | 28% | $194 |
| 44 | Hawaii | $850 | $1,026 | 21% | $176 |
| 45 | Arizona | $634 | $803 | 27% | $169 |
| 46 | Oregon | $496 | $659 | 33% | $163 |
| 47 | Utah | $505 | $664 | 31% | $159 |
| 48 | D.C. | $1,089 | $1,225 | 12% | $136 |
| 49 | Alaska | $861 | $974 | 13% | $113 |
| 50 | California | $925 | $1,000 | 8% | $75 |
| 51 | Nevada | $695 | $742 | 7% | $47 |
How to Lower Your Premium
Regardless of where you live, lowing your premium is always a good idea. Here are a few tips to help bring your premium down:
Shop Your Insurance: This is usually the best way to lower your rate. Insurers rate risk differently which can result in dramatically different premium quotes. Always compare apples to apples when it comes to coverage levels and deductibles. Click here to easily shop and compare multiple home insurance rate quotes now!
Discounts: Insurers offer numerous discounts and your job is to make sure you get all discounts that you are qualified to receive. Have your agent do a discount review to make sure you are getting all available discounts.
Upgrade Your House: Putting a wind resistant roof on your home, adding storm shutters or installing a sprinkler system can garner a fairly good-sized discount. Check with your insurer to see what home improvements will help you get a discount.
Helpful Article: Top 5 Home Improvements That Can Save You Money on Your Home Insurance