Insurify Projects 2025 Home Insurance Costs Will Increase up to 27% in Some States

Louisiana and California home insurance will rise the most, but even 'safer' states like Iowa and Minnesota will face steep increases.

CAMBRIDGE, Mass., April 8, 2025 /PRNewswire/ -- Insurify, Americans' top-rated digital insurance agent, has released its third annual American Homeowner Insurance report. The report examines probable home insurance rate movements in every state and identifies ones where costs will rise the most and the most rapidly in 2025. States with high storm and wildfire risks will see the greatest increases, Insurify predicts. Louisiana stands to see the biggest increase — 27%. And the data projects that Californians could see their home insurance costs spike by 21% in 2025.

The report projects that the national average cost of home insurance will rise another 8% in 2025, following a 20% increase over the past two years.

Even inland states with comparatively lower weather and fire risks will experience significant increases. In Iowa, damage from escalating wind and hail events will contribute to a 15% rise in home insurance rates. Minnesota, which has experienced 18 billion-dollar disasters between 2022 and 2024, will also see a 15% increase.

"Severe weather risks are a top driver of home insurance rate increases," said Hayden Broberg, Vice President of Commercial Partnerships at Insurify. "Between 2022 and 2023, the number of hail events in Iowa has soared 133%. Add higher repair and materials costs into the mix, and you have an environment in which insurers can no longer afford to carry as much risk as they once did."

Insuring the American Homeowner key findings
To project homeowners insurance trends across the country, Insurify's data scientists turned to their real-time database of insurance quotes from partner carriers, as well as aggregated rate filings from Quadrant Information Services.

The report's key projections include:

• The national average cost of homeowners insurance will rise 8% to $3,520 per year by the end of 2025.
• Louisiana and California will see the sharpest increases, at 27% and 21%, respectively.
• Home insurance rates will climb by 15% or more in Hawaii, Iowa, and Minnesota.
• With a 9% increase on the horizon, Florida will continue to be the most expensive state for homeowners insurance, averaging $15,460 by the end of 2025.
• The most expensive cities for home insurance are all clustered in Florida and Louisiana, with Hialeah, Florida, topping the list at a projected 2025 average of $26,693.
• Increasingly severe and frequent natural disasters, like hurricanes, tornadoes, hailstorms, and wildfires, are driving nationwide home insurance increases.
• Sustained tariffs on homebuilding materials would likely promote further home insurance rate increases.

Insurify's full Insuring the American Homeowner Insurance report is available online, and its home insurance experts are available for commentary. Direct media inquiries and interview requests to [email protected].

About Insurify
Based in Cambridge, Massachusetts, Insurify, America's top-rated virtual insurance agent, empowers consumers to securely compare, buy, and manage their auto, home, pet, and renters insurance policies. With more than 400 insurance partner integrations, Insurify has served over 130 million quotes and $200 billion in insurance coverage while maintaining a no-spam policy. Powered by advanced AI, Insurify's highly rated platform helps consumers save hundreds of dollars annually, often cutting their insurance bills in half. Customers can choose to compare and buy policies online in just minutes, get assistance from a live agent along the way, or work with an expert insurance agent throughout the process. Insurify has received numerous accolades, including Inc.'s 5,000 Fastest-Growing Private Companies in America (2024), CNBC's World's Top InsurTech Companies (2024), Forbes' Fintech 50 List (2023), and Forbes' Next Billion-Dollar Startups (2023 and 2022).

For more information:
[email protected]
www.Insurify.com

SOURCE INSURIFY, Inc.