Surging home insurance costs could force families to leave these 10 states
American Land Title Association CEO Diane Tomb discusses her outlook for housing costs, commercial real estate fears and strategy on mortgage rates.
The astronomic rise in mortgage rates and spike in home prices over the past year has pushed a key tenet of the American dream out of reach for millions of families.
Now, there is another obstacle to homeownership: higher home insurance premiums.
The average cost of home insurance for a $300,000 property in the U.S. surged 12% in 2023 to roughly $1,770 per year, according to a new report published by Insurify, an insurance comparison website headquartered in Massachusetts.
However, home insurance is even more expensive in states plagued by severe weather and other climate-related catastrophes. In fact, as the frequency and severity of destructive weather events have increased, more areas are considered high risk and unprofitable for insurance companies, the report said.
HIGH INFLATION IS STILL SQUEEZING AMERICANS' BUDGETS
A growing number of insurance companies are opting to leave states like California and Florida, driving prices even higher for homeowners.
Here's a look at where you can expect to pay the highest premium for home insurance.
Florida is the most expensive state for home insurance, with the average annual cost rising $9,213 last year. That is 421% higher than the national average.
Waterfront homes near Naples Pier in Naples, Florida, on Feb. 13, 2024. (Lisette Morales McCabe/Bloomberg via Getty Images / Getty Images)
Rates jumped by 14% in 2023 as several major insurers stopped renewing certain policies or left the state entirely, citing concerns over hurricane risk. Severe weather damages in Florida topped $15 billion last year.
PROPERTY INSURANCE GOING
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