HomeHome InsuranceSkyrocketing Home Insurance May Trigger Exodus from 10 States

Skyrocketing Home Insurance May Trigger Exodus from 10 States

Americans working toward having a place of their own are now apparently facing higher home insurance premiums.

A report from the insurance comparison website called Insurify said the price tag for home insurance on a property valued at $300,000 increased 12 percent in 2023 to approximately $1,770 a year, Fox Business reported Friday.

The outlet said home insurance is even more pricey for people living in states where they regularly experience severe weather because those areas are deemed high risk, and insurance companies do not see a way to benefit.

“A growing number of insurance companies are opting to leave states like California and Florida, driving prices even higher for homeowners,” the Fox article read.

It then listed states where people can expect to pay the highest home insurance premiums: Florida, Oklahoma, Mississippi, Texas, Kansas, Georgia, Nebraska, Massachusetts, New York, and Colorado.

Meanwhile, Bankrate reported Thursday, “The average cost of homeowners insurance in the U.S. is $1,759 per year for $250,000 in dwelling coverage”:

While inflation has slowed down, insurance rates are reactionary. The cost of home insurance is still increasing due to the impact inflation has had on the previous losses experienced by the insurance company, the elevated cost of building materials and the future risk posed by extreme weather.

In January, researchers said that in 2022, a record half of people in the United States who were renting a place to live used a significant portion of their income to pay for rent and utilities, according to Breitbart News.

It is important to note that the housing market in December received an unexpected boost from falling interest rates, Breitbart News reported, noting that sales could grow throughout 2024.

“Pending home sales rose 8.3 percent last month, the National Association of Realtors said Friday,” the outlet stated, adding, “This was the biggest jump since the ‘flight from the cities’ housing rush in 2020 when pending home sales shot up 14.9 percent in June.”

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