Homeowners Insurance Prices: Where Are They Now?

Thu May 10 2018

Having a sense of where homeowners insurance prices are makes you a more informed buyer.

Nationally, prices for homeowners insurance have increased modestly in the last few years: the Aon Benfield 2018 Homeowners’ ROE Outlook Report shows that prices from the country’s top 20 carriers increased by just three percent in the 18 months leading up to August of last year.

But national averages hide a lot, especially when it comes to homeowners insurance costs. Here’s a deeper dive of what the picture looks like in a few harder-hit states.

Home Insurance Prices in Florida Are Up 5%

Florida homeowners insurance prices rose faster than the nation as a whole, jumping five percent from from February 2016 through August 2017. One factor that affects the price of homeowners insurance is natural disaster activity. Considering Hurricane Irma hit Florida on August 30 of last year, it’s reasonable to expect that prices might continue to rise for the residents of the Sunshine State.

Home Insurance Prices in Texas and North Carolina: Up 7%

Despite the higher-than-average price hike, though, Florida’s price increases weren’t the country’s largest. Texas and North Carolina both saw seven percent increases in the same period. Again, given that Harvey struck Texas at the tail end of the period measured, there’s a chance that future prices may be even higher.

Depending on the larger picture, though, it’s also possible that homeowners insurance prices will be relatively unaffected by the major hurricanes; instead, the cost of flood insurance may see a bump. Flood coverage is not included in a typical homeowners insurance policy.

One more important note for North Carolinians: the insurance department recently agreed to a rate increase. The statewide average increase is 4.8 percent, but some coastal areas will see increases as much as 5.5 percent (which is far lower than what the state’s rating board requested). What this means for you:

  • The state of North Carolina will now allow homeowners insurance carriers to charge slightly higher rates.
  • Individual carriers may want to charge more than the state-mandated maximum because they believe they have to do so to remain profitable.
  • If you receive such a request from your insurer (a “request to rate” letter), read the fine print. If you don’t accept the request to pay more than the state’s maximum, your carrier may not renew your coverage. (But you can always look for coverage from a different company.)

Biggest Homeowners Insurance Price Increases in OK, KS, CO

One of the industry’s most comprehensive looks at homeowners insurance prices is published by the National Association of Insurance Commissioners (NAIC). The most recent report looks at prices from 2007 to 2015 and found the largest increases in Oklahoma, Kansas, and Colorado (ranking first, second, and third, respectively).

Here’s a look at the causes of those price increases and some ways homeowners in those states can help keep their rates low:

  • Oklahoma: Blame the rise on natural disasters. Between 2007 and 2015, annual premiums for OK homeowners increased by an average of $825. Homeowners who opt for tornado-resistant features (either on new construction or as retrofittings for existing homes) may see some savings.
  • Kansas: Hail, tornadoes, and fire incidents all contributed to the $627 average price increase for KS homeowners. As is true anywhere in the country, making sure you have safety features in place may help reduce your premiums.
  • Colorado: The average yearly insurance premium increases of $557 for CO homeowners can be attributed to both natural disaster activity and the type of new homes being built. Larger homes with higher-quality features (which were apparently popular in Colorado during the period measured) cost more to insure, regardless of what Mother Nature is up to.

If you’re looking to save money on your homeowners insurance, we may be able to help. Apply for coverage with Kin today. It takes just a couple minutes and you’ll be able to compare a real quote (not an estimate) with what you’re already paying.

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