How High Could Home Insurance Rates Jump This Year? Here's What Experts Predict
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When your homeowners insurance policy comes up for renewal in 2024, be prepared for an unpleasant shock: You’re likely to face a premium increase of 10% to 15%, and the price jump could be much higher if you live in an area where there's risk of wildfires or severe storms. That's assuming you can find home insurance coverage at all.
Home insurance costs have soared recently, and policy renewal data shows that premiums have been increasing by more than 20% year-over-year, according to separate reports from insurance firm Matic and insurance marketplace Policygenius released in late 2023.
According to Matic, the national average annual cost of home insurance climbed to about $1,700 in 2023, up from $1,175 in 2019.
Rising prices have added stress on household budgets, and the number of people skipping home insurance coverage altogether has also soared.
While the rate of inflation in home insurance prices is expected to slow down this year, Stuart Winchester, founder and CEO of Marble, says he’s counseling customers to still expect 10% to 15% hikes. That would translate to premium increases of $100 to $250 for the year — or hundreds more for customers in areas where home values or insurance rates are higher.
Citing a “rise in catastrophic events nationwide,” Matic predicts that insurance companies will continue to significantly increase premiums because they need to pass along their higher costs to policyholders. However, “as inflation slows down in 2024, it’s not likely that premiums will rise at the record-high rates seen in 2023.” Notably, construction costs soared during the pandemic, but should be more stable going forward as inflation cools.
