Home Insurance Prices Up 21% as Homeowners Are Left to Deal with Climate Change, Turbulent Market

In several disaster-prone states, homeowners have seen an average premium increase of around 50% over the last two years, according to the 2023 Policygenius Home Insurance Pricing Report

NEW YORK, Sept. 13, 2023 /PRNewswire/ -- As the U.S. grapples with a surge in extreme weather and natural disasters, home insurance prices are continuing to skyrocket.

From May 2022 to May 2023, home insurance policy premiums increased by an average of 21%, substantially higher than the reported increase of 12% from the previous year (May 2021 to May 2022), according to a new report released today by insurtech leader Policygenius.

The analysis, which is based on internal Policygenius data from more than 17,000 policies renewing from May 2022 to May 2023, also found that in every state (plus Washington, D.C.) analyzed for this report, the average premium increase was higher than the year before. The sharp increases in recent years come amid record-high insurance industry losses, more severe climate disasters, prolonged wildfire seasons, and higher construction prices.

The 2023 Policygenius Home Insurance Pricing Report also found that:

• The vast majority of U.S. homeowners faced higher insurance premiums at renewal. Of the more than 17,000 home insurance policies quoted for renewal with Policygenius between May 2022 and May 2023, 94% were quoted a higher premium at renewal, compared to 91% of 10,283 renewals from May 2021 to May 2022.
  
  
• Home insurance prices are up 35% compared to just two years ago, with several wildfire- and tornado-prone states seeing the largest average increases. Based on an analysis of 27,156 home insurance policy renewals from May 2021 to May 2023, Policygenius found that insurance premiums increased by an average of 68% in Florida, 47% in New Mexico, and 46% in Colorado, Idaho, and Texas over the course of two years.
  
  
• East Coast states saw the smallest increases at renewal in 2023. While homeowners in these states haven't experienced the same level of sticker shock as others, home insurance premiums have still increased 10% in Vermont, 11% in New York, 13% in Maine, and 14% in New Hampshire since last year, according to the Policygenius analysis.

While most home insurance providers have raised premiums or reduced coverage in high-risk areas to remain profitable, others have gone out of business completely due to the turbulent market. The lack of affordable options has been particularly noticeable in Florida, where homeowners saw their premiums increase an average of 35% from May 2022 to May 2023, after seeing an average increase of 10% the year before.

"Given the industry's ongoing challenges and the threat of climate change, it's not surprising that home insurance premiums are continuing to rise," Pat Howard, a licensed property and casualty insurance expert at Policygenius, said. "For homeowners with rising costs, it's important to know there are multiple ways to lower your premium, like re-shopping your home insurance through an independent marketplace to ensure you aren't missing out on a more affordable option."

The data used in this report is based on internal Policygenius data from May 2021 to May 2023. To read our full methodology and the 2023 Policygenius Home Insurance Pricing Report, click here.

About Policygenius
Policygenius transforms the insurance journey for consumers by providing a one-stop platform where consumers can compare options from top insurance carriers, get unbiased expert advice, buy policies, and manage their insurance portfolio, in one seamless, integrated experience. Our proprietary technology platform integrates with the leading life, disability, and home & auto insurance carriers and delivers an exceptional digital experience for both consumers and insurance carriers. Since 2014, our content, digital tools, and experts have served as a resource for millions of people on their insurance journey, and we have sold more than $200 billion in coverage. In 2023, Policygenius was acquired by Zinnia, an insurance technology and digital services company. To receive Policygenius announcements, email [email protected].

About Zinnia
Zinnia, an Eldridge business, combines a rich history of insurance expertise and product capabilities to create simplified and digitized outcomes that deliver better value and foster more seamless, secure, and efficient experiences for carriers, advisors, consumers, and reinsurers. Zinnia simplifies buying, selling, and administering insurance. Combining intuitive enterprise technology solutions and data insights with the streamlined, consumer-facing Policygenius marketplace, Zinnia is creating better end-to-end insurance experiences for shoppers, advisors, and insurers alike — and enabling more people to protect their financial futures along the way. Zinnia has over $173.7 billion in assets under administration across 60+ carrier clients, 350 distributors and partners, and over 2 million policyholders. In 2023, Zinnia acquired Policygenius, a digital consumer marketplace, to expand its offerings and create an end-to-end insurance experience. To receive Zinnia announcements, email [email protected].

For more information:
Brooke Niemeyer
Director of Media Relations
[email protected] 

SOURCE Policygenius