Home Insurance Rising – 72% Saw Rates Increase in 2023

Seventy-two percent of home insurance policyholders reported rate increases in 2023, according to a survey completed by ValuePenguin.

Of those who saw their premiums rise:

• 26% said they increased less than 5%
• 37% said they increased 5% to 9.99%
• 18% said they increased 10% to 19.99%
• 6% said they increased 20% to 29.99%
• 3% said they increased 30% or more
• 10% said they didn’t know how much premiums increased

Regardless of whether respondents experienced insurance rate hikes, the majority (72%) blamed inflation, while rising home prices, homeowners filing more claims, insurance company greed, climate change and labor shortage were also believed causes of rising rates.

By generation, baby boomers were most likely to experience rate increases at 78%, followed by millennials (73%) and Gen Xers (64%). Additionally, those with children were more likely to report rate hikes than those without.

Looking ahead, 75% of survey respondents said they expected home insurance rate increases in 2024. Baby boomers (79%), six-figure earners (79%), women (76%) and those with children 18 or older (76%) especially expect rates to rise.

Increases in insurance rates are to be expected, according to ValuePenguin home insurance expert Divya Sangameshwar.

“A huge part of this comes down to the rising volume and cost of claims,” she says. “Climate change has led to increases in the number and severity of hurricanes, floods, tornadoes, drought, heat waves and other harsh weather, which have led to a spike in the volume of claims in many parts of the country.”

Fifty-four percent of policyholders said they’ve shopped around for homeowners insurance to see if they were getting the best rate, with millennials being most likely to have explored their options. Rising rates have caused concerns for many homeowners, and 26% of policyholders surveyed reported being worried that their homes will become uninsurable.

Still, despite concerns about rising rates and exploration of other options, 49% have had their current policy for more than five years, and 87% haven’t updated or changed their current home insurance policy in at least a year.