STUDY: HOME INSURANCE POLICY PREMIUMS UP 21% YEAR-OVER-YEAR
Home insurance policy premiums increased by an average of 21% between May 2022 and May 2023, according to a study released by the insurtech platform Policygenius. In comparison, the premium increase from the previous 12-month period (May 2021 to May 2022) was only 12%.
The study was culled from internal Policygenius data encompassing more than 17,000 policies renewing from May 2022 to May 2023. Of the more than 17,000 home insurance policies quoted for renewal with Policygenius during that period, 94% were quoted a higher premium at renewal, compared to 91% of 10,283 renewals from May 2021 to May 2022.
Home insurance prices are up 35% compared to just two years ago, most notably in states that have been impacted by severe weather and wildfires. Based on an analysis of 27,156 home insurance policy renewals from May 2021 to May 2023, Policygenius found that insurance premiums increased by an average of 68% in Florida, 47% in New Mexico, and 46% in Colorado, Idaho, and Texas over the course of two years. In comparison, Northeast states that were not impacted by these occurrences saw the smallest increases at renewal during 2023 –10% in Vermont, 11% in New York, 13% in Maine, and 14% in New Hampshire.
“Given the industry’s ongoing challenges and the threat of climate change, it’s not surprising that home insurance premiums are continuing to rise,” said Pat Howard, a licensed property and casualty insurance expert at Policygenius. “For homeowners with rising costs, it’s important to know there are multiple ways to lower your premium, like re-shopping your home insurance through an independent marketplace to ensure you aren’t missing out on a more affordable option.”