Will Homeowners Insurance Rates Increase in 2024?
If you’ve recently received your home insurance renewal and noticed another increase, you’re not alone. Home insurance rates are rising across the country, even if you haven’t filed a claim.
So, why are home insurance rates increasing in 2024?
Let’s break down the key reasons behind these rising costs and what you can do to protect your wallet while ensuring you have the right coverage.
Why Are Home Insurance Rates Increasing in 2024?
The home insurance industry is facing major challenges that are driving up rates for homeowners nationwide. Here are the top reasons why your home insurance premium may be increasing again this year:
1. The Entire Home Insurance Industry is Struggling
AM Best, a top insurance rating agency, recently downgraded the entire home insurance industry from “stable” to “negative.”
According to AM Best Senior Director Richard Attanasio, the issues affecting home insurance companies are so severe that many insurers are being forced to raise rates just to stay financially stable.
This means higher premiums for homeowners across the board, even for those who haven’t filed claims.
2. Severe Weather Events Are Increasing Claims
Home insurance rates are heavily impacted by weather-related claims, and unfortunately, natural disasters have been on the rise.
- Wildfires in the West have destroyed more homes than ever, with a 215% increase in structures lost, even though the total burned area has only increased 48%.
- Hurricanes along the Gulf Coast continue to cause billions in damage.
- Inland flooding is increasing, leading to costly claims in areas that were previously considered low-risk.
Since insurance companies operate on a risk pool system, even if you don’t live in these high-risk areas, your rates may still go up as insurers spread out their losses across all policyholders.
Some of the biggest insurers, including Allstate, Farmers, Nationwide, and State Farm, have already pulled out of high-risk areas or stopped offering new policies altogether. With fewer insurance providers in the market, competition decreases, leading to higher costs for consumers.
3. Construction Costs Are Still Sky-High
Rebuilding after a claim costs insurers more than ever due to increased material and labor costs.
According to Gordian, a top construction cost data firm, over 82% of construction materials have significantly increased in price since 2020, with an average jump of 19%.
Here’s how some materials increased in price in 2023 alone:
- Wood: ⬆ 16%
- Concrete & Masonry: ⬆ 15%
- Insulation: ⬆ 11%
- Electrical Conduit Work: ⬆ 12%
- Steel: ⬆ 22%
Additionally, skilled construction labor wages have increased by 29% over the past four years.
🔹 What This Means for Homeowners:
Since insurance companies pay for repairs and rebuilding after a claim, these increased costs are passed on to you in the form of higher premiums.
4. Reinsurance Costs Are Soaring
One of the biggest hidden factors behind rising home insurance rates is reinsurance—the insurance that insurance companies buy to protect themselves from massive losses.
Right now, reinsurance investors are pulling out of the home insurance market in favor of safer investments with better returns. This forces insurance companies to pay more for their own coverage, which in turn raises your rates.
Industry experts predict that reinsurance costs won’t stabilize until late 2024, meaning homeowners won’t see relief anytime soon.
What Can You Do to Save Money on Home Insurance?
While rising insurance rates are frustrating, there are steps you can take to lower your costs.
1. Work with an Independent Insurance Agency Like Trailstone
The easiest way to find better rates? Let Trailstone Insurance Group shop your policy for you!
🔹 We work with over 40 top-rated insurance companies to find the best coverage at the best price.
🔹 We apply every available discount to help you save money.
🔹 We review your policy at every renewal to make sure you’re still getting the best deal.
✅ More choices = Better rates. Unlike State Farm, GEICO, or USAA (which only sell their own policies), we compare multiple options to find you the best fit.
2. Take Advantage of Home Insurance Discounts
Many homeowners miss out on savings because they don’t know about available discounts.
Here are some common home insurance discounts you should check for:
✔ Bundling: Combine your home and auto insurance for major savings.
✔ Security System Discount: Installing a home security system can lower your rate.
✔ Roof Upgrade: If you have a newer or impact-resistant roof, you may qualify for a discount.
✔ Claims-Free Discount: If you haven’t filed a claim recently, you may be eligible for lower rates.
✔ Higher Deductible: Raising your deductible can reduce your premium.
Want to know which discounts apply to you? Call us today, and we’ll check for you!
3. Don’t Settle—Review Your Insurance Policy Every Year
If you let your policy automatically renew without shopping around, you could be leaving money on the table.
At Trailstone, we offer our Trailstone Renewal Assurance Certification (TRAC)—a 24-point renewal check to ensure you always have the best coverage at the best rate.
Final Thoughts: What to Expect for 2024 Home Insurance Rates
✅ Home insurance rates are rising across the board.
✅ Severe weather, higher construction costs, and reinsurance challenges are driving up premiums.
✅ You CAN save money by working with an independent insurance agency like Trailstone.
💡 Don’t wait for your renewal to find out your rates have increased! Contact Trailstone Insurance Group today, and let us help you find better coverage at a lower price.
📞 Call us now or click the link below for a free quote!
🔹 More than 2,100 five-star Google reviews can’t be wrong—see why homeowners trust Trailstone to save them money!
Until next time, stay covered and stay smart!