New Report Finds Homeowners Insurance Premiums Have Risen 24% Since 2021

A new report from the Consumer Federation of America (CFA) reveals that American homeowners have seen their insurance premiums rise by an average of 24% over the past three years, outpacing the rate of inflation and adding a collective $21 billion in costs for policyholders.

Published on April 7, 2025

insurance premiums
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The report, titled Overburdened: The Dramatic Increase in Homeowners Insurance Premiums and its Impacts on American Homeowners, analyzes industry data across every U.S. ZIP code to uncover how widespread and uneven these increases have been. “The skyrocketing price of insurance premiums is deepening the housing crisis from Salt Lake City to New Orleans and beyond,” said Sharon Cornelissen, Director of Housing at CFA and a lead author of the report. “If we want to protect affordable homeownership, federal and state policymakers need to take action.”

Key Findings from the Report

Between 2021 and 2024, the average premium for a typical homeowner rose by $648, bringing the national average annual premium to $3,303.

Other notable highlights include:

  • Premiums increased in 95% of ZIP codes nationwide
  • One-third of ZIP codes saw increases of more than 30%
  • Utah (59%), Illinois (50%), Arizona (48%), and Pennsylvania (44%) experienced the largest percentage increases
  • The most expensive states for homeowners insurance remain Florida, Louisiana, Oklahoma, Kentucky, and Nebraska

The report also estimates that Americans paid an additional $27 billion over three years when including renters, condo owners, owners of manufactured homes, and those with less common coverage types.

Data Gaps and Policy Recommendations

CFA's analysis points to the intersection of housing, climate risk, and insurance availability as a growing area of concern. While acknowledging the role of rising disaster-related claims and global reinsurance costs, the report also raises concerns about regulatory oversight and transparency in the industry.

To address the issue, CFA calls for several reforms, including:

  • Requiring insurers to publicly report detailed transaction data, similar to what is mandated of mortgage lenders under the Home Mortgage Disclosure Act (HMDA)
  • Increased investments in risk mitigation and loss prevention
  • Improved regulatory oversight of rate filings at the state level
  • The creation of a federal reinsurance backstop to help stabilize insurance markets

State-Level Action and Local Impact

Consumer advocacy groups in several states have voiced support for policy changes that would give regulators more tools to address premium increases. In Illinois, for example, the Illinois PIRG is calling for the state’s Department of Insurance to gain authority to review and modify excessive rate hikes. In Arizona, concerns are growing about affordability and access to coverage, particularly in wildfire-prone regions.

Access the Full Report

The Overburdened report builds on previous CFA research into the risks of uninsured homes and the shifting homeowners insurance landscape in the U.S. It offers detailed insights for each state and ZIP code, as well as policy frameworks for potential reform.

Download the full report from the Consumer Federation of America.

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