Why premiums rose
Why is my homeowners insurance so high?
You're not imagining it. Premiums are up 21% nationally since 2021 — and 30–60% in many states. Here's why, and the levers you can actually pull.
9 reasons your premium went up
Reinsurance costs
Carriers buy insurance from reinsurers, and reinsurance rates are up 30%+ since 2022 due to global cat losses. That cost flows directly to your premium.
Construction inflation
Lumber, labor, and materials are up 40%+ since 2019. Even with the same policy, the rebuild cost it has to cover is now much higher.
Severe convective storms
Hail, wind, and tornado losses have set records for 4 straight years. Carriers in CO, TX, OK, NE, and KS are repricing entire books.
Wildfire & coastal exposure
If you're in WUI (wildland-urban interface) or near the coast, carriers are non-renewing or repricing aggressively.
Roof age & condition
A roof over 15 years old triggers premium loads, ACV settlement, or non-renewal at many carriers.
Claim history
Even one closed claim on the CLUE report can raise rates 10–20% for 5 years. Two claims often means non-renewal.
Credit-based insurance score
In most states, a drop in credit score raises your premium — sometimes more than a claim does.
Limits keeping pace with rebuild cost
Carriers automatically increase your dwelling limit each year. That's actually correct — but it makes the premium grow even when nothing else changed.
Carrier exiting your market
When a major carrier pulls out, the remaining ones see less competition and reprice. Florida and California are the extreme examples.
8 levers you can actually pull
- 1
Re-shop the policy with 10–15 carriers, not just 2–3. Independent advisors do this; captive agents can't.
- 2
Raise the deductible from $1,000 → $2,500 or $5,000. Often a 10–20% premium drop.
- 3
Bundle home + auto for a 10–15% multi-policy discount.
- 4
Add wind-mitigation features (impact glass, hip roof, hurricane straps) where applicable.
- 5
Verify your dwelling limit matches actual rebuild cost — not an inflated automatic recalculation.
- 6
Add an alarm/smart home discount (water sensors, smoke detection, monitored security).
- 7
Check for unfair surcharges: prior carrier lapse, prior cancelation, or inaccurate roof age.
- 8
Move ACV roof endorsement back to RCV if your roof is under 10 years old — small premium hike, large claim ROI.
The hidden cost of cutting coverage
The fastest "savings" comes from dropping endorsements — water backup, ordinance & law, scheduled valuables, RCV on the roof. Each one saves $30–$150/year. Each one can cost $10,000–$60,000 at claim time. The math almost never works in your favor.
The right way to lower a premium is to re-shop across many carriers, fix surcharges, optimize deductibles, and add discounts — not to quietly remove coverage you'll need.
Frequently asked
Why did my homeowners insurance go up so much?
Three structural reasons in 2024–2025: reinsurance rates are up sharply, construction costs are 40%+ higher than 2019, and severe convective storm losses (hail, wind, tornado) have set records for four straight years. Carriers are repricing entire books, and the increases hit at renewal whether you filed a claim or not.
How much has homeowners insurance gone up?
Nationally, average premiums rose ~21% from 2021 to 2023 and another ~11% in 2024 — but those averages mask huge state variation. Colorado, Texas, Oklahoma, Nebraska, Kansas, Louisiana, and Florida have seen 30–60%+ increases. Lower-risk states (Ohio, Indiana, Michigan) have seen smaller increases.
Can I lower my homeowners insurance without dropping coverage?
Often, yes. Raising your deductible, bundling auto, fixing your insurance score, removing inaccurate surcharges, and re-shopping with 10+ carriers can typically save 10–30% without cutting any coverage. The biggest wins come from re-shopping, not from cutting endorsements.
Should I shop my homeowners insurance every year?
Every 2 years minimum, or any year your premium increases 10%+. Carriers reprice books constantly — the carrier that was cheapest 3 years ago is rarely cheapest today. The work is the same whether you save $200 or $2,000, so it's worth doing.
Will filing a claim raise my homeowners insurance?
Almost certainly. A single claim typically raises premiums 10–20% for 3–5 years (it stays on your CLUE report for 5–7). Two claims in 3 years often triggers non-renewal. For damage under ~$3,000 over your deductible, it's usually better to self-pay.
Get a real second opinion.
An independent advisor compares your renewal against 10–15 carriers and tells you what's actually competitive — without dropping the coverage you need.
Related reading
General information, not legal or financial advice. Coverage and limits vary by carrier and state.