Home Insurance Rates Rose for 2 in 3 Policyholders in 2024

Approximately 2 in 3 home insurance policyholders reported their rates rising in 2024, according to a ValuePenguin survey of nearly 2,000 U.S. consumers, which was conducted earlier this year. 

From 2023 to 2024, the majority (35%) said their home insurance rates increased by 5.0% to 9.9%. A considerable 21% said their rates rose 10.0% to 19.9%. Policyholders most blamed inflation (63%) for these rate hikes, followed by rising home prices (48%). 

Looking ahead to the rest of the year, 75% of respondents said they expect their home insurance rate to increase in 2025. In anticipation, 34% said they’ve downgraded or reduced their home insurance coverage, saving an average of $782 annually. 

In addition to rising rates, 50% said they were worried that their homes would become uninsurable in the future, almost doubling from last year (26%). These fears may stem from an increase in nonrenewal notices, as 25% reported receiving them this year, up from 19% in 2024. 

Whether it’s because of high costs or nonrenewal notices, there are some ways homeowners can save on home insurance. The survey found that 58% of policyholders shopped around for home insurance, saving an average of $1,034 annually the last time they did so. 

Additionally, 56% said they’ve asked their insurer for discounts, and the majority who did ask were able to successfully reduce their premiums. 

Notably, the National Association of Realtors® also reports that while consumer prices have risen by approximately 30% over the past decade, homeowner insurance costs have surged by more than 50%. 

Meanwhile, Black homeowners pay more for home insurance than any other racial group. In 2023, Black homeowners paid a median of $1,360 per year, compared to $1,310 for White homeowners, $1,330 for Asian homeowners and $1,300 for Hispanic homeowners.