From Money Magazine:

Homeowners insurance premiums are expected to rise by 10-15% in 2024, with even higher increases in areas prone to wildfires and severe storms. Policy renewal data shows premiums have surged by over 20% year-over-year, reaching a national average of $1,700 in 2023. The significant hike is attributed to higher claims, labor shortages, and supply-chain issues, leading to limited availability and 10-15% hikes this year. However, experts predict premiums won’t increase as much in 2024 as they did in 2023 due to a cooling of inflation and corrected pricing from insurers.

Insurers may face delays in implementing rate increases due to the regulatory environment, but homeowners should still expect higher premiums in 2024. Disaster risk, supply-chain issues, and labor shortages are driving up the cost of home repairs and replacing home products, factors contributing to higher insurance prices. Despite the cooling of inflation, homeowners may still see delayed rate hikes and limited options for coverage in disaster-prone states.

Some insurers have stopped writing new policies or limited underwriting, making it harder for customers to find home insurance. In California and Florida, insurers have stopped offering home insurance altogether, leading to uncompetitive markets with massive rate increases. The availability of home insurance will likely become more limited in 2024, making it challenging for homeowners to find affordable coverage.

Experts recommend comparing quotes from multiple companies and hardening your home to lower insurance costs. Strategies to save include installing storm-protected windows, opting for a higher deductible, bundling policies, and improving your credit score. Keep an eye on trend in home insurance prices as they are expected to rise this year.



Read more: Home Insurance Rates: Experts Predict More Price Increases