According to Insurify’s 2025 American Homeowner Insurance Report, home insurance rates are projected to rise significantly across the United States, with especially steep increases in states facing high climate-related risks. The report, based on real-time insurance quote data and aggregated filings from Quadrant Information Services, outlines rate trends expected throughout the year.
Notable State-Level Increases
Louisiana is expected to see the largest year-over-year increase in average home insurance costs, with rates projected to rise by 27% in 2025. California follows closely with a forecasted 21% increase. Both states continue to experience elevated exposure to natural disasters such as hurricanes and wildfires.
Several inland states are also projected to face substantial rate hikes. Iowa and Minnesota, for example, are each expected to see a 15% rise in premiums. These increases reflect the growing impact of hail and wind events, as well as a higher frequency of billion-dollar weather disasters. Between 2022 and 2024, Minnesota experienced 18 such events.
National Trends and Contributing Factors
On a national level, average home insurance costs are expected to rise by 8% in 2025. This follows a 20% increase over the previous two years, bringing the projected national average premium to $3,520 by year-end.
Natural disasters remain a primary factor in rising rates — hurricanes, tornadoes, wildfires, and hailstorms are contributing to higher overall risk. In addition, inflation in construction costs and continued tariffs on building materials are placing added pressure on insurance providers, influencing premium adjustments nationwide.
Hayden Broberg, Vice President of Commercial Partnerships at Insurify, pointed to the correlation between severe weather and rising insurance costs. In Iowa, for example, the number of hail events increased by 133% between 2022 and 2023.
High-Cost States and Cities
Florida remains the most expensive state for home insurance, with a projected average annual premium of $15,460 in 2025. Several cities in Florida and Louisiana top the list for highest premiums, with Hialeah, Florida, projected to reach $26,693 — making it the most expensive city in the country for home insurance.
Other states expected to see increases of 15% or more include Hawaii, where ongoing natural disaster risks continue to play a key role in driving rate growth.
Summary of Key Findings
- The national average home insurance premium is projected to reach $3,520 in 2025 — an 8% increase.
- Louisiana and California will see the largest increases — 27% and 21%, respectively.
- Iowa, Minnesota, and Hawaii are each expected to experience increases of 15% or more.
- Florida will remain the most expensive state for home insurance, with Hialeah ranked as the most costly city.
- Severe weather events and increased rebuilding costs are the main drivers of rising rates.
Insurify’s report highlights the growing volatility of the home insurance market, shaped by climate impacts, economic trends, and evolving risk data across the country.
About Insurify
Based in Cambridge, Massachusetts, Insurify, America’s top-rated virtual insurance agent, empowers consumers to securely compare, buy, and manage their auto, home, pet, and renters insurance policies. With more than 400 insurance partner integrations, Insurify has served over 130 million quotes and $200 billion in insurance coverage while maintaining a no-spam policy. Powered by advanced AI, Insurify’s highly rated platform helps consumers save hundreds of dollars annually, often cutting their insurance bills in half. Customers can choose to compare and buy policies online in just minutes, get assistance from a live agent along the way, or work with an expert insurance agent throughout the process. Insurify has received numerous accolades, including Inc.’s 5,000 Fastest-Growing Private Companies in America (2024), CNBC’s World’s Top InsurTech Companies (2024), Forbes’ Fintech 50 List (2023), and Forbes’ Next Billion-Dollar Startups (2023 and 2022).
Stay informed and ahead of the curve — explore more industry insights and program opportunities at ProgramBusiness.com.