NORFOLK, Va. — As prices go up across the board, people are watching their budgets more closely. Going forward families and individuals will now need to adjust for increasing homeowners insurance costs.

The Consumer Federation of America wanted to understand why and what people can expect for the year ahead.

So, the consumer advocacy nonprofit studied data from the six largest insurance companies from 2021-2023 for nearly all zip codes in the United States.

Doug Heller, the director of insurance for CFA says what they found is “unprecedented.”

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The report titled “Overburdened” investigates the rise in homeowners insurance premiums and its impacts on American homeowners.

“We found that insurance companies increased premiums in 95% of all zip codes across the United States from 2021 to 2024,” says Sharon Cornelissen, the director of housing for the Consumer Federation of America.

During that time in Virginia, data shows that premiums surged by 31%, while North Carolina experienced a 29% increase. Digging into the numbers, I found that the average homeowner with a mid-tier credit score and a $350,000 home paid about $648 more in 2024 than they did in 2021.

As severe weather hits closer to home, the pressure on insurance premiums continues to rise.

Most recently families were left picking up the pieces after tornadoes in Virginia Beach, Virginia and Perquimans County, North Carolina.

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Heller warns, “as these prices become more and more intolerable, we are deeply concerned that some will go underinsured and accept lower-quality coverage that will leave them unable to rebuild or repair if disaster strikes.”

Chip Phillips from Island Insurance Agency in the OBX told News 3 reporter Samuel King in 2024, “reinsurance rates that the companies are having to pay on their books of business have gone up through the roof causing their prices to increase and be passed onto the consumer.”

Cornelissen predicts it won’t just impact individual homeowners, but entire communities saying, “homes will become harder to sell, and property values will decline in those places that are most impacted by high insurance premiums.”

I also asked if tariffs will have an impact.

“There is no question that if the insurance companies find that the rebuilding costs are increased due to tariffs, we policyholders, we Americans, will feel that increase on next year’s premiums,” he says.

So, what can homeowners do to protect themselves? Heller suggests several proactive steps. Keeping your credit score high and shopping around for insurance is crucial.

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He also suggests making your home more weather-resistant, pointing to state-programs that provide grants for people looking to strengthen their home against disaster, “a lot of states now have grants of up to $10,000 to strengthen your roof, and we think that that’s critically important for people to look for and take advantage of.”

Heller also pointed out that insurance companies offer “actual cash value” policies. These policies calculate claim payouts by taking the replacement cost of an item and subtracting depreciation.

While these policies are more affordable, you’ll have reduced coverage, and they could lead to greater financial consequences if disaster strikes.

“[Let’s say a] windstorm blows shingles off your roof or damages your home; the insurance company is going to pay you a claim that is reduced by whatever depreciation has occurred on your home. So, if you have a 15-year-old roof that costs $20,000 to replace, they might only pay you $4,000 to replace it because they’ve depreciated it,” Heller says as an example.

People need to calculate their comfort level with the risk and the monthly insurance payment before making a coverage decision.

Click here to see the CFA’s full report.