Latest news with #homeinsurance
Yahoo
a day ago
- Business
- Yahoo
These 9 States Have the Cheapest Home Insurance — but Are They Affordable To Live In?
Home insurance prices are up across the U.S. as insurance companies both try to recoup incredible losses from the last few years and brace for more losses as climate-related disasters intensify. Recent research by Insurify found that there is no state where home insurance prices are not going up in 2025. Find Out: Read Next: How much home insurance rates are rising and how high they'll go depends entirely on your location. All states bear exposure to extreme weather events and the perils of climate change, but some states are less vulnerable to date than others. Home insurance prices in these states are going up less aggressively. But are the nine states with the cheapest home insurance rates (based on 2024 costs) affordable to live in? To find out, we found the average cost of a home in each state, along with the cost of housing, as compared to the national average. New Jersey 2024 average annual home insurance premium: $1,674 2025 projected average annual home insurance premium: $1,773 Cost of housing, as compared to the national average: 44% higher Average home value in 2025: $569,314 Learn More: West Virginia 2024 average annual home insurance premium: $1,656 2025 projected average annual home insurance premium: $1,744 Cost of housing, as compared to the national average: 27% lower Average home value in 2025: $169,928 Maine 2024 average annual home insurance premium: $1,641 2025 projected average annual home insurance premium: $1,688 Cost of housing, as compared to the national average: 1.2% lower Average home value in 2025: $416,948 Oregon 2024 average annual home insurance premium: $1,617 2025 projected average annual home insurance premium: $1,807 Cost of housing, as compared to the national average: 39% higher Average home value in 2025: $507,256 Delaware 2024 average annual home insurance premium: $1,607 2025 projected average annual home insurance premium: $1,693 Cost of housing, as compared to the national average: 5% lower Average home value in 2025: $405,948 New Hampshire 2024 average annual home insurance premium: $1,556 2025 projected average annual home insurance premium: $1,608 Cost of housing, as compared to the national average: 24.6% higher Average home value in 2025: $507,081 Hawaii 2024 average annual home insurance premium: $1,548 2025 projected average annual home insurance premium: $1,808 Cost of housing, as compared to the national average: 206% higher Average home value in 2025: $833,984 Alaska 2024 average annual home insurance premium: $1,470 2025 projected average annual home insurance premium: $1,543 Cost of housing, as compared to the national average: 28% higher Average home value in 2025: $377,447 Vermont 2024 average annual home insurance premium: $1,209 2025 projected average annual home insurance premium: $1,248 Cost of housing, as compared to the national average: 27% higher Average home value in 2025: $403,432 More From GOBankingRates Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard 8 Common Mistakes Retirees Make With Their Social Security Checks 9 Downsizing Tips for the Middle Class To Save on Monthly Expenses This article originally appeared on These 9 States Have the Cheapest Home Insurance — but Are They Affordable To Live In? Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Daily Mail
6 days ago
- Business
- Daily Mail
Record rate hike by state farm ignites fury in blue state
State Farm has sparked fierce backlash by hiking home insurance rates in Illinois by 27.2 percent, adding $746 to the average bill. The insurer insists the hike is unavoidable, claiming it's paying out far more in claims than it collects in premiums in the state. For every $1 collected in the state in 2024, the company says it paid out $1.26. The year before, the sum it paid out was even higher, at $1.30. Hail damage is the main culprit, the company said, with Illinois trailing only Texas for the number of hail-related claims last year. Rising labor and material costs have also driven up repair expenses. But lawmakers have blasted the price hikes, which could hit policyholders as soon as August 15. Illinois Governor JB Pritzker (pictured) called the increases 'unfair and arbitrary', promising to work to deliver more protections for homeowners in the face of soaring costs . Illinois is one of the few states where insurers can raise rates without approval from regulators. The state has no meaningful rate review process for homeowners insurance, reported. This means that once a company files new rates with the Department of Insurance, that is typically the end of the story. State Farm already raised rates 12.3 percent in 2024 — and it is not alone. Allstate also hiked prices for policyholders in Illinois by 14.3 percent earlier this year, and 12.7 percent in 2024. With the latest increase, Democratic Governor Pritzker accused State Farm of raising costs in the state to subsidize losses elsewhere in the US. 'Hardworking Illinoisans should not be paying more to protect beach houses in Florida,' he said. Illinois House Speaker Emanuel Chris Welch also called the hike 'wrong.' But other lawmakers have questioned whether regulation to protect consumers from rising costs could end up driving insurers out of the market. Republican State Representative Jeff Keicher, who is also a longtime State Farm agent, used California as an example, saying that regulatory constraints have led insurers to flee the state. 'The worst thing we can do is force insurers to underprice and go out of business,' Keicher told The Chicago Tribune, 'and leave homeowners without a way to get their home fixed if the worst happens.' Several large insurers, including State Farm, have cut back or limited their coverage in California amid worsening climate disasters, leaving many people struggling to find home cover. Over half of Californians said in 2024 that they had been affected by rising premiums for property coverage or had been dropped by their insurer entirely . In the wake of State Farm's proposal for Illinois, lawmakers are fast-tracking a series of proposals designed to give consumers more protection. Last year, Pritzker signed legislation requiring rate review for large group health insurance, allowing the state to block excessive increases, reported. Now some lawmakers want to apply that same framework to home insurance policies where companies must justify hikes with years of data.
Daily Mail
6 days ago
- Business
- Daily Mail
State Farm sparks backlash in blue state with record rate jump
State Farm has sparked fierce backlash by hiking home insurance rates in Illinois by 27.2 percent, adding $746 to the average bill. The insurer insists the hike is unavoidable, claiming it's paying out far more in claims than it collects in premiums in the state. For every $1 collected in the state in 2024, the company says it paid out $1.26. The year before, the sum it paid out was even higher, at $1.30. Hail damage is the main culprit, the company said, with Illinois trailing only Texas for the number of hail-related claims last year. Rising labor and material costs have also driven up repair expenses. But lawmakers have blasted the price hikes, which could hit policyholders as soon as August 15. Illinois Governor JB Pritzker called the increases 'unfair and arbitrary', promising to work to deliver more protections for homeowners in the face of soaring costs. Illinois is one of the few states where insurers can raise rates without approval from regulators. The state has no meaningful rate review process for homeowners insurance, reported. This means that once a company files new rates with the Department of Insurance, that is typically the end of the story. State Farm already raised rates 12.3 percent in 2024 — and it is not alone. Allstate also hiked prices for policyholders in Illinois by 14.3 percent earlier this year, and 12.7 percent in 2024. With the latest increase, Democratic Governor Pritzker accused State Farm of raising costs in the state to subsidize losses elsewhere in the US. 'Hardworking Illinoisans should not be paying more to protect beach houses in Florida,' he said. Illinois House Speaker Emanuel Chris Welch also called the hike 'wrong.' But other lawmakers have questioned whether regulation to protect consumers from rising costs could end up driving insurers out of the market. Illinois Governor JB Pritzker called the increases 'unfair and arbitrary', promising to work to deliver more protections for homeowners in the face of soaring costs Republican State Representative Jeff Keicher, who is also a longtime State Farm agent, used California as an example, saying that regulatory constraints have led insurers to flee the state. 'The worst thing we can do is force insurers to underprice and go out of business,' Keicher told The Chicago Tribune, 'and leave homeowners without a way to get their home fixed if the worst happens.' Several large insurers, including State Farm, have cut back or limited their coverage in California amid worsening climate disasters, leaving many people struggling to find home cover. Over half of Californians said in 2024 that they had been affected by rising premiums for property coverage or had been dropped by their insurer entirely. In the wake of State Farm's proposal for Illinois, lawmakers are fast-tracking a series of proposals designed to give consumers more protection. Last year, Pritzker signed legislation requiring rate review for large group health insurance, allowing the state to block excessive increases, reported. Now some lawmakers want to apply that same framework to home insurance policies where companies must justify hikes with years of data. Increases will then be rejected if they are deemed 'excessive, inadequate, or unfairly discriminatory.' Instead of regulation, the insurance industry itself is pushing for measures to make properties more resilient against future natural disasters, including more comprehensive home construction standards.
Yahoo
22-07-2025
- Business
- Yahoo
Alarming report warns that huge number of once-valuable homes may soon be 'worthless': 'State of crisis'
Alarming report warns that huge number of once-valuable homes may soon be 'worthless': 'State of crisis' A study has shown that destructive weather patterns are causing massive strain on the California home insurance market, according to InsuranceNewsNet. What's happening? California has been battered by catastrophic wildfires in recent years, leaving properties and lives in shambles. Direct air capture company Deep Sky has released findings showing that one in five homes in the most extreme fire risk areas of California have lost insurance coverage since 2019. Many insurance companies pulled coverage just months before the record-setting Palisades fires in January 2025. "The home insurance market is in a state of crisis. The highest risk areas of California have effectively become uninsurable and will soon become unaffordable," said the report. "Banks will not approve mortgages without home insurance, and few will buy a house without a mortgage (in a high risk wildfire area no less). Without significant policy intervention, these properties will eventually become worthless." Why is home insurance important? "We are in a statewide insurance crisis, affecting millions of Californians," said Insurance Commissioner Ricardo Lara, per InsuranceNewsNet. "Taking this on requires tough decisions. This is not a game." This sentiment has been shared by the U.S. Senate Budget Committee, which has projected that climate shifts will prompt a housing market crash worse than the one in 2008. What's being done about home insurance hikes? Wildfire season has begun in the state, and solutions are hard to find. "California is just entering the worst phase of its crisis," said Diane Delaney, executive director of the Private Risk Management Association, per InsuranceNewsNet. "Regulatory limitations have made it difficult for insurers to adjust pricing or expand capacity in high-risk areas." While California has a state-backed insurer of last resort, the amount of risk they're able to be exposed to is limited. Florida has attempted several reforms, which have included financial support for insurers, but homeowner rates have continued to rise despite the "corporate welfare." Do you feel like your home is well-insulated? Definitely In most areas Only in some rooms Not at all Click your choice to see results and speak your mind. Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet. Solve the daily Crossword
Forbes
22-07-2025
- Business
- Forbes
Rising Insurance Costs Make Buying A First Home Even Harder
Skyrocketing home insurance costs are extra challenging for first-time buyers. It used to be said that owning a home protected you from unpredictable costs like rent hikes. It added stability to your life and finances. Is this still true? Have skyrocketing home insurance costs eliminated the predictability and stability of homeownership? Have they contributed to the crisis of young couples unable to buy homes and start their families? These costs have definitely been a contributing factor, according to industry observers. Insurance Adding to First Time Buyer Challenges 'First-time home buyers have dropped to the lowest level recorded in more than four decades,' shares the National Association of Realtors' economist Jessica Lautz. Insurance is one pain point among others, including higher mortgage rates, HOA fees, energy costs and home prices themselves, she notes. Inflation is impacting all aspects of homeownership. Lautz points to a 2024 NAR homebuying study that details home insurance costs. 'Over the past decade, while consumer prices have risen by approximately 30%, homeowners' insurance costs have surged by more than 50%,' it notes. The high cost of housing and increased prices for everything related to homeownership, including insurance, is causing couples to delay starting families and impacts their physical as well as fiscal, health. 'Bringing housing costs to an affordable level can make all the difference in the life — and future — of a family,' according to one of many studies on the topic, this one by Habitat for Humanity. 'Homeowners insurance is yet one more hurdle to affordability,' observes Down Payment Resource CEO Rob Chrane. 'Like interest rates, it affects how much you can borrow, reducing the price range of homes you can afford,' he adds. The uncertainty around the cost of insurance your prospective home can be more damaging than the sticker shock of home prices. 'An unexpected $1,000 to $2,000 increase for homeowners insurance can suddenly upend your budget,' he shares, noting, 'In specific markets, we've encountered situations where the monthly escrow payment for insurance alone surpasses the loan's principal and interest payment.' High interest rates are still the bigger psychological hurdle, Chrane notes, shaping what buyers think they can afford. 'But insurance costs are quickly catching up. Again, uncertainty plays a role. Interest rates are visible up front, while insurance costs come up later in the process, surprising some buyers and throwing them off track at the worst moment.' Scope of the Problem 'According to LendingTree's 2025 State of Home Insurance Report: 'Home insurance rates have spiked 40.4% in the past six years, with the last two years seeing double-digit increases.' Rates were fairly stable from 2019 to 2021, then surged afterward. 'This is a relatively new trend,' notes licensed insurance expert and LendingTree contributor Rob Bhatt. 'Up until a few years ago, homeowners insurance was usually an afterthought in the homebuying process. Many homebuyers now need to think about home insurance earlier on in the process than before.' Location, Location, Location It's reasonable to expect that states like California, Florida and Texas, with their headline-grabbing disasters, would be the front runners for insurance hikes. However, as Chrane observes, other forces contribute to rising premiums, including regulatory challenges and insurer exits. Disaster-prone states have also set up their own insurer-of-last-resort programs for regions where homeowners can't find policies. Bhatt points to California's as an example. 'Even if your insurance company doesn't raise your normal home insurance rate, you may receive an extra charge to help cover the FAIR Plan's expenses.' He also notes that California's insurance commissioner has given conditional approval for State Farm's temporary rate hikes to become permanent. 'I imagine other companies have filed, or will file, for rate increases to keep up with the rising costs of insuring homes in California,' he predicts. The latest natural disaster to hit homeowners was the Texas hill country flash floods from earlier this month. Bhatt doesn't expect them to hike rates for one simple reason: 'Homeowners insurance doesn't cover floods.' At the same time, the insurance expert notes that insurers tend to avoid homes in elevated risk areas. 'Considering the extent of the damage, I suspect that some insurance companies may be less willing to insure homes in these affected areas than they have in the past. Some may continue insuring homes in the affected areas but charge higher rates.' He also notes that the flooding may rewrite flood zone maps, which can impact both the costs and availability of coverage. 2026 Prediction Bhatt sees signs of stabilization. 'We may be entering a normal pattern where rates only increase slightly from year to year or even come down. This, in turn, may provide some relief to homeowners and home buyers.' However, he cautions, life can be unpredictable. Buyer Tips The LendingTree pro suggests shopping around for a lower rate and considering a higher deductible to save money. He also notes that 'It's good to avoid filing claims for relatively minor repairs. Insurance companies usually raise your rates after a claim of any size. If you have two or more claims within a short amount of time, your insurance company may drop you.' It's better to payout of your pocket for damage of a couple thousand or less, he cautions. 'In the long run, you're usually better off saving insurance for large expenses you wouldn't otherwise be able to afford.' You can also save on your premiums by making your home more disaster resistant, he notes. I've written about the Fortified hurricane and Wildfire Prepared Home programs. Even if you don't go for a full certification, you can let your insurer know about specific changes you've implemented to potentially save on your insurance coverage. Chrane urges buyers to research down payment assistance programs like his to lessen their financial burden. 'Once their budget is set,' he suggests, 'they should talk with home insurance agents and compare quotes because premiums can differ by hundreds or even thousands of dollars annually for the same coverage.' Lautz agrees that prospective buyers should be researching down payment assistance programs and considering overlooked neighborhoods.
