Summary
Home insurance costs are increasing in areas prone to extreme weather due to climate change, according to a new analysis. The national average for annual home insurance premiums rose by 9% since 2023, with states like Nebraska, Louisiana, and Florida seeing particularly high rates. Lawmakers in Florida are making efforts to reduce costs, even as climate impacts continue to affect insurance availability and affordability.
Key Facts
- The national average for annual home insurance premiums is $2,470 as of July 2023.
- Nebraska, Louisiana, and Florida have much higher than average premiums due to extreme weather risks.
- For example, homeowners in New Orleans spend about 17.5% of their median income on home insurance.
- Higher incomes in some areas, like Denver, can offset high insurance costs relative to income.
- Florida has seen a 9% decrease in home insurance costs from 2023 to 2025.
- Climate change is causing insurers to non-renew policies or leave high-risk markets.
- Many factors influence actual home insurance costs, including credit scores and home materials.
