Home insurance rates are continuing to increase, and in some cases greatly so, according to an industry survey indicating that some of the most substantial hikes have been seen in the West.
Looking at the overall rate trendlines from 2021 to last year, the Topeka, Kansas-based insurance broker Policygenius puts four Western states in the top five for cost increases, with New Mexico leading the way with a 47% jump.
In real dollar terms, that means that the state’s annual costs have risen from an average of around $855 to just under $1,300.
The other three states in the top five: Colorado, where rates jumping from just under $1,400 to just over $2,000 are making up a 46% increase; and Idaho, also with a 46% increase, and costs rising from $552 to just over $800.
The final Western state at the top of the list: Texas, with costs rising from $1,471 to $2,141, also comprising a 46% increase.
Leading the list, and not for the first time, is Florida with a massive 68% increase and dollar cost going from $1,127 to just under $1,900.
According to the publication Money, explanation for the rise in Florida is simple: the Sunshine State experiences an average of three hurricanes a year. But the rising insurance costs in the West are due mostly to the advent of wildfires.
“Wildfire risk isn’t just making it more expensive to get insurance in affected states,” notes the publication. “It’s also making it harder for some people to find coverage at all as insurers are reportedly reducing exposure in certain areas.”
Other states in the West were similarly hard hit, but not as much as the top five. Arizona has seen a jump of 26%; Nevada, 16%; and Utah, 29%.
Overall, according to the Policygenius Home Insurance Pricing Report, insurance costs have gone up nationally by 21%, with states in the Northeast experiencing the smallest jumps. Vermont, for example, saw a 7% increase.
A report released late last year by the Congressional Research Service also noted another facet of the homeowners’ insurance challenge: areas where insurers may be pulling out altogether, “leaving people unable to find insurance at all except for state-created insurers of last resort.”
Such entities, the report continued, “may offer coverage that is more expensive or less complete than private coverage.”
By Garry Boulard
