In 2023 and 2024, the United States experienced the most natural disasters on record that led to damages of at least $1 billion.
So it’s no surprise that home insurance companies over the past few years have increased their rates for homeowners, a new report found, particularly in 2023 and 2024.
Over the past six years, countrywide home insurance rates climbed 40.4 percent, according to LendingTree’s 2025 State of Home Insurance Report.
The increases had been relatively stable since 2019. Then, in 2023 — when the U.S. notched the highest recorded billion-dollar weather and climate events, according to NOAA — they rose 11 percent year over year. Rates spiked another 11.4 percent in 2024, the fourth costliest year on record, according to NOAA.
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Inflation has also been higher than usual in recent years, further putting pressure on insurance firms to boost costs.
“Insurance companies have had to rebuild more homes than normal, and the cost of rebuilding each one has become more expensive,” said Rob Bhatt, a LendingTree home insurance expert, in the report.
Montana and Nebraska experienced the greatest annual rate increase in 2024, of 22 percent. Florida, Texas and New York had the lowest increases.
It’s likely that homeowners won’t fare much better in 2025. For instance, California state regulators recently gave State Farm, which covers 15 percent of homes in the state, the green light to raise home insurance premiums there by 30 percent because of the Los Angeles wildfires earlier this year.
Rates spiked the most between 2019 and 2024 in Colorado, where they surged by nearly 77 percent, the Charlotte-based lending marketplace found. Colorado during this time period had 24 billion-dollar weather events, most of them severe storms, according to NOAA.
The states with the smallest rate increases over this time frame were: Vermont (12.2 percent), Alaska (12.9 percent) and Maine (17.9 percent).
Oklahoma and Nebraska, in the heart of Tornado Alley, last year clocked the highest average annual home insurance costs of $6,133 and $5,912, respectively. Oklahoma’s average cost is about 119 percent higher than the national average, and Nebraska’s is 111 percent higher, according to LendingTree.
Meanwhile, the states with the lowest yearly insurance costs are Hawaii ($632), California ($1,260) and Vermont ($1,339).