Home Insurance Prices Outpacing Inflation in Many States; Average Increase of 12.1% Since Last Year

Home insurance premiums increasing at more than double the rate of inflation in some states, according to new report from Policygenius

NEW YORK, July 12, 2022 /PRNewswire/ -- As inflation skyrockets throughout the country, home insurance prices are rising even faster, according to a new report released today from insurtech leader Policygenius.

From May 2021 to May 2022, the price of goods and services increased by 8.6% in the U.S. In this same time period, home insurance costs outpaced inflation in all but one of the states Policygenius analyzed, with 13 states seeing average premium increases more than 50% higher than the current inflation rate.

On average, premiums are up 12.1% compared to a year ago, according to expert analysis of internal policyholder data. From May 2021 to May 2022, 90% of homeowners saw their quoted annual premium increase. For those whose premiums went up, the average increase was $134.

The Policygenius Home Insurance Pricing Report also found:

• In multiple states, home insurance costs have increased at more than double the rate of inflation. Over the past 12 months, home insurance premiums are up as much as 18.5% in Arkansas, 18.1% in Washington, and 17.5% in Colorado, increasing by more than twice the rise of inflation during that same period.
• New York was the only state in Policygenius' analysis with a premium increase lower than the inflation rate, at 8%. Homeowners in New York saw the lowest increases at renewal since last year, with an average premium hike of just $56.
• Oklahoma saw the largest premium increases, with policyholders seeing their premiums go up $257 on average.

"Home insurance coverage and premium amounts are based on the cost to rebuild, which takes into account the price of lumber, roofing, contractors, and anything else that goes into building a home. As home construction costs continue to outpace the overall rate of inflation due to supply-chain disruptions, unprecedented labor shortages, and frequent natural disasters, home insurance prices have followed suit," Pat Howard, a licensed property and casualty insurance expert at Policygenius, said. "It's important for consumers to know there are multiple ways to lower your premium, including regularly re-shopping your home insurance, bundling insurance policies, or installing smart home devices."

Average premium increases are based on internal Policygenius data for 8,698 active home insurance policies quoted for renewal from May 20, 2021 to May 20, 2022. The percentage change in each state reflects the average difference between the original premium and the insurance carrier's quoted renewal premium for each individual policy (final renewal premium for each policyholder may differ from the quoted premium due to policy or carrier changes).

This analysis was limited to the 25 states for which Policygenius had a statistically significant number of policies, meaning a large enough sample size relative to the overall population in that state. If a statistically significant state had outliers, or policy premiums that were abnormally higher or lower than the main cluster of values, those policies were not included in this analysis.

To read the full Policygenius Home Insurance Pricing Report, click here.

Policygenius transforms the insurance journey for today's consumer, providing a one-stop platform where customers can compare options from top insurance carriers, get unbiased expert advice, buy policies, and manage their insurance portfolio, in one seamless, integrated experience. Our proprietary technology platform integrates with the leading life, disability, and home and auto insurance carriers and delivers an exceptional digital experience for both consumers and insurance carriers. Since 2014, our content, digital tools, and experts have served as a resource for millions of people on their insurance journey, and we have sold more than $170 billion in coverage.

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For more information:
Brooke Niemeyer
Associate Director of Media Relations
[email protected]

SOURCE Policygenius