Summary
Home insurance rates in the United States have increased faster than inflation in most states from 2020 to 2025. A report by LendingTree shows that insurance costs grew 45.8% nationally, while the inflation rate rose by 26.1%. Factors like natural disasters and increased building costs are contributing to this rise in insurance rates.
Key Facts
- Home insurance rates have risen faster than inflation in 44 states and the District of Columbia.
- Nationally, home insurance rates increased by 45.8% between 2020 and 2025.
- Inflation, measured by the consumer price index, rose by 26.1% in the same period.
- Only five states saw home insurance rates increase slower than inflation: West Virginia, Vermont, Maine, Alaska, and New York.
- Colorado had the largest gap between insurance rate increases and inflation, with a difference of 74.4 percentage points.
- Natural disasters and increased costs for building materials have driven up insurance rates.
- Rising home insurance costs are affecting household budgets, impacting spending on essentials like groceries and utilities.
