Home insurance in America might double very soon — and not just in ‘disaster’ cities. Why rates are skyrocketing across the US and how to protect yourself now

Why homeowners insurance is going up

According to a report from JPMorgan, inflation and climate change are the driving forces behind the property insurance crisis.

Simply put, climate disasters are becoming more frequent and less predictable, as scientists have been warning for years. Meanwhile, home prices have climbed rapidly in recent years, which means it costs more to repair or replace a home after it has been damaged.

The combination of these factors has made it difficult for insurance companies to price policies appropriately and has pushed rates higher to compensate for the added risks. States like California and Florida are at the forefront of this unfortunate crisis because of their exposure to extreme weather events such as hurricanes and wildfires.

However, Midwestern states that don’t experience hurricanes and wildfires are not immune to rising rates. With damage from tornadoes, floods, hail, and high winds on the rise, property insurance costs are climbing across the board in these regions.

In fact, Insurify forecasts that the Midwest will bear some of the highest increases as insurers overhaul their pricing strategies to reflect escalating weather-related risks.

With this in mind, homeowners across the country should prepare for the rapidly rising costs of insuring their properties.

Stop overpaying for home insurance

Home insurance is an essential expense – one that can often be pricey. You can lower your monthly recurring expenses by finding a more economical alternative for home insurance.

Officialhomeinsurance can help you do just that. Their online marketplace of vetted home insurance providers allows you to quickly shop around for rates from the country’s top insurance companies, and ensure you’re paying the lowest price possible for your home insurance.

Explore better rates

How to protect yourself

While you can’t change the insurance industry or reverse climate change, there are ways to potentially limit the rising costs of insurance over the long term.

For starters, shop around for the best insurance rate that you can find every year when you approach renewal. Ask multiple providers for quotes and see what you can do to get the best deal possible.

Investing in climate-resilient features could also limit the damage from extreme weather events and qualify you for a discount on insurance. According to Universal Property, upgrading your roof, electrical wiring or plumbing could potentially reduce your insurance costs.

You could also lower your rate by raising the deductible on your policy and skipping small claims.

If the property insurance rates in your area are too high, you might even consider moving to another part of the country. A recent report from the Federal Insurance Office — which analyzed 246 million insurance policies sold between 2018 and 2022 — found that homeowners in regions most vulnerable to climate-related disasters paid, on average, 82% more for insurance than those in the lowest-risk areas.

As for potential homebuyers, don’t forget to include the annual cost of property insurance in your budget. Focusing on newer homes with less depreciation and more climate-resilient features could reduce your monthly expenses while also giving you some peace of mind.