Home insurance rates have climbed sharply in recent years, with premiums rising nearly 47% nationwide from 2020 through 2025, according to LendingTree’s 2026 State of Home Insurance report. The affordability strain, long acute in Florida and California, is now spreading widely across the country.
In 2025, the steepest increases were roughly triple the national average. Colorado’s premiums rose 18.3% that year, with Minnesota close behind at 17% and Iowa at 14.7%.
No state included in the analysis recorded a decline in 2025. “Homeowners across the country have faced steeply risen rates,” said Sharon Cornelissen of the Consumer Federation of America. “It’s not just California and Florida anymore.”
Colorado leads in home insurance rate hikes
Over the full 2020 to 2025 period, Colorado posted the largest cumulative increase, exceeding 100% and far outpacing the national trend. Analysts attribute the surge primarily to severe weather.
The state was affected by 22 separate billion-dollar disasters from 2020 through 2024, according to federal data, with hail, wildfires, tornadoes, and severe storms all contributing, said Mark Friedlander of the Insurance Information Institute.
Friedlander said wildfire and hail risks had been priced conservatively for years, but a series of costly losses since 2020 prompted insurers to reassess Colorado’s risk more aggressively. The 2021 Marshall Fire, which destroyed more than 1,000 homes near Boulder, underscored the escalating exposure.
Population growth and new construction in Colorado are increasingly concentrated in “Hail Alley,” the country’s most hail-prone region. The state now ranks sixth nationally for hail-related insurance claims.
To provide an option for homeowners who cannot find coverage on the private market, Colorado launched a FAIR Plan last year, intended as an insurer of last resort. State officials are also pursuing mitigation through the Access Homeowner’s Insurance Enterprise law, signed by Gov. Jared Polis in June.
The program creates grants, funded by insurer fees, to help homeowners install fortified roofs designed to resist hail and wind. Grants are not expected to be issued until at least 2027, and the measure does not mandate specific premium reductions.
The 10 states where costs have risen the most
Many states that once had relatively affordable homeowners coverage are now seeing increases that outstrip inflation and wage growth. Florida and California, long associated with surging premiums, did not rank among the 10 states with the largest recent increases.
The biggest jumps are concentrated largely west of the Mississippi River. Analysts say the sharpest increases are tied to so-called secondary perils, particularly severe convective storms and wildfires, which historically have been modeled less precisely than named-storm risk.
“Insurers are now recalibrating pricing in these regions to reflect a decade of escalating losses,” Friedlander said. Between 2021 and 2024, insurers raised premiums in 95% of U.S. ZIP codes, according to the Consumer Federation of America.
Why these states are seeing the sharpest increases
From an underwriting perspective, the upward pressure on rates reflects more frequent and costly severe weather losses, combined with elevated labor and construction material costs.
Hail, wind damage, and wildfires
The hardest-hit states are clustered in the Midwest and Mountain West rather than along hurricane-exposed coasts. Deductibles, particularly for hail and wind, are rising in many places.
Hail events can be especially expensive because a single storm can damage roofs, siding, and other property across thousands of homes simultaneously. Wildfire risk adds another layer of exposure in drier Western states such as Colorado, Utah, Arizona, and California, where recent fires have produced catastrophic losses.
More claims than premiums
LendingTree found that in Louisiana, Iowa, and Hawaii, home insurers paid out more in claims than they collected in premiums. While carriers can absorb losses temporarily, sustained deficits have prompted larger and more frequent rate filings as losses mount, Friedlander said.
Those increases ultimately fall on consumers. Cornelissen of the Consumer Federation of America said the trend is adding pressure to already high housing costs for renters and homeowners alike.
Reinsurance
Reinsurance, which helps carriers handle large catastrophe losses, is another driver. When reinsurance costs rise, large insurers may seek bigger rate increases, raise deductibles, tighten underwriting, or retreat from high-risk areas.
The impact can lag due to regulatory timelines. From 2020 through 2024, the median approval time for rate filings was 331 days in Colorado and 305 days in California, according to the Government Accountability Office, meaning consumers may feel the financial aftereffects of a major catastrophe a year or more later.
How home insurance rate increases compare with overall costs
Between 2021 and 2024, insurers raised premiums in 95% of U.S. ZIP codes, according to the Consumer Federation of America. Still, a state can record a steep increase without being among the most expensive places to insure a home.
Arizona illustrates the point. Premiums there rose 71% from 2020 to 2025, the sixth-largest jump nationally, yet the average annual cost is $2,225, about 7% below the U.S. average of $2,395.
Friedlander noted that a large percentage increase off a historically low base can still leave a state below the national average. Other states face both rapid growth in rates and high absolute premiums.
Nebraska, with the fifth-largest increase at 72%, now has the second-highest average annual homeowners premium at $4,956, more than double the national average. At the same time, some homeowners are paying more for policies that provide less than what was once standard coverage.
“Homeowners are seeing a growing share of their monthly payments go towards insurance rather than their mortgage,” Cornelissen said. “Growing insurance unaffordability is a big part of our housing affordability crisis.”
How to save on homeowners insurance costs
While consumers cannot control weather or approved rate filings, premiums vary widely and several factors can influence what a homeowner pays for coverage. Consider the following steps:
- Shop regularly. Obtain multiple quotes from different insurers and compare equivalent coverage, not just the price. Carrier competitiveness can change over time.
- Adjust your deductible. A higher deductible can reduce premiums, but ensure it is an amount you can cover after a major loss.
- Bundle policies. Multipolicy discounts are common. Compare the combined price with standalone policies to confirm savings.
- Ask about discounts. Security systems, smoke detectors, newer roofs, and updated plumbing may qualify for lower rates.
- Harden your home. Depending on location, upgrades such as fortified roofing, storm shutters, or impact-resistant windows can lead to savings.
- Review coverage annually. Confirm limits match your needs so you are not overpaying or underinsured.
- Improve credit. Research from consumer advocates shows lower credit scores correlate with higher premiums. Paying down debt or working with a counselor may help.
Population growth, construction trends, and climate risk are also reshaping where and how quickly premiums rise, with many changes unfolding over years rather than months. Those shifts can influence broader markets, including SPDR S&P 500 Growth and other financial benchmarks tied to insurers and housing-related sectors.
Homeowners seeking more information about insurance availability and consumer protections can consult their state insurance department and related regulatory resources.