The State of Homeowners Insurance in 2025: What You Should Expect

LOS ANGELES - Dec. 17, 2024 - PRLog -- Homeowners insurance rates vary widely from state to state, even city to city. Currently, the average national homeowners insurance rate is $1,915 a year for $300,000 worth of dwelling coverage. In 2023, the average premium was around $1,700. There is little hope that rates will go down in the near future, unless there are fewer severe storms and wildfires.

While most states have seen an increase in homeowners insurance rates, not all states have been hit very hard. Those who live in low-crime areas that are not much affected by extreme weather or wildfires will see a less dramatic increase in 2025, maybe less than 4%.

In 2024, insurance companies raised California homeowners insurance rates by 20%, largely due to unexpected losses caused by severe wildfires. This came as no surprise, seeing that home insurance rates have gone up, on average, around 27% in many parts of the country.(1)

Florida also experienced the same fate because it was hit hard by severe weather, lawsuits and insurance fraud. Other states also lost insurers due to heavy losses.

See how your state will fare in 2025.

Facts about homeowners insurance in 2025:

The average home insurance premium is $1,915 heading into 2025, but prices vary widely based on location.

Floridians pay as much as, if not more than, $11,000 a year in home insurance.

Homeowners insurance rates are expected to increase in 2025, mainly due to severe weather.

For the full article and state-specific insights, visit https://smartfinancial.com/will-homeowners-insurance-go-down