HOMEOWNERS INSURANCE IS RISING FASTEST IN THESE 10 STATES
As the threat of more frequent and more severe natural disasters looms over the country, the cost of home insurance—already skyrocketing in vulnerable areas like Florida—is expected to rise in several states through the rest of 2024, according to a recent study by Insurify.
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The 10 states where insurance costs could rise the most by the end of the year, according to estimates by the virtual insurance company, are Louisiana, Maine, Michigan, Utah, Montana, South Carolina, North Carolina, Illinois, Connecticut and Nevada.
Louisiana is expected to see the biggest projected increase, 23 percent (for a projected annual rate of $7,809), followed by Maine with 19 percent (for a projected annual rate of $1,571); Michigan with 14 percent (for a projected annual rate of $2,095); Utah with 13 percent (for a projected annual rate of $1,541); Montana with 12 percent (for a projected annual rate of $1,997); South Carolina with 11 percent (for a projected annual rate of $3,410); and North Carolina along Illinois with 10 percent (for projected annual rates of $2,327 and $2,245 respectively).
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Connecticut and Nevada are projected to see a rise of 9 percent.
Newsweek contacted Insurify for comment by email on Monday morning.
According to Insurify, these increases—which are projected but are not guaranteed to occur, of course—will be caused by severe weather events, inflation and rising homebuilding costs. Rises are expected at the national level too: the company foresees a 6 percent uptick in average premiums by the end of 2024, bringing up the average insurance rate from the current $2,377 per year to $2,522 per year.
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In the past two years insurance premiums have risen by 20 percent at the national level. Florida is one of the states that have seen the sharpest increases: Insurify found that homeowners in the Sunshine State now pay an average premium of nearly $11,000 per year.
The state is facing an ongoing crisis because of a combination of factors including the heightened risk posed by natural disasters, excessive litigation and widespread fraud. According to Insurify, Florida will remain the most expensive state in the country for home insurance through 2024, with a projected average annual rate of $11,759.
Louisiana, according to the company's estimates, will be the second-most expensive state ($7,809), followed by Oklahoma ($5,711), Mississippi ($4,482), Texas ($4,437), which is expected to see a price drop, Colorado ($4,367), Nebraska ($4,292), Alabama ($4,281), Kansas ($3,666) and Arkansas ($3,662).
The states with the highest projected increases are prone to extreme weather events, or they're becoming so: while Louisiana has long been vulnerable to hurricanes, states like Maine "are catching up," according to the Insurify's study.
"The Maine Climate Council projects a 1.5-foot relative sea level rise (SLR) by 2050. Coastal storm impacts will increase 10 times in frequency with just one foot of SLR," the report reads.
North Carolina and South Carolina face similar heightened risks from hurricanes, storms and flooding.
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