Home insurance rates have surged nearly 40% since 2019 – but they're rising fastest in these states
FOX Business real estate contributor Katrina Campins discusses the increase in home insurance premiums on 'The Bottom Line.'
The astronomic rise in mortgage rates and spike in home prices over the past year have pushed a key tenet of the American dream out of reach for millions of families.
Now, there is another hurdle to homeownership: higher home insurance premiums.
Since 2019, home insurance rates in the U.S. have surged 37.8% to roughly $2,478 per year, according to new data published by LendingTree. That is noticeably faster than the overall 24% increase in the consumer price index recorded during that same time period.
SURGING HOME INSURANCE COSTS COULD FORCE FAMILIES TO LEAVE THESE 10 STATES
Waterfront homes near Naples Pier in Naples, Florida, on Feb. 13. (Lisette Morales McCabe/Bloomberg via Getty Images / Getty Images)
Researchers have blamed the skyrocketing prices on a number of factors, including weather disasters, rising home prices and steep home repairs as inflation pushes the cost of building materials higher.
«Insurance companies have to repair more homes, and it’s more expensive to rebuild each one than it might have been just five years ago,» said Rob Bhatt, LendingTree home insurance expert. «When their costs of paying claims go up, they turn around and raise our rates. This is affecting prices for just about everyone, including people who haven’t been directly impacted by a natural disaster, or at least not yet.»
HAVE KIDS? GOOD LUCKING BUYING A HOUSE THIS YEAR
Home insurance is even more expensive in states plagued by severe weather and other climate-related catastrophes. As the frequency and severity of destructive weather events have increased, more areas are considered high risk and
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