Home Insurance to Spike in One State, According to New Prediction

Home insurance is likely to skyrocket in one state through 2024, experts are now predicting.

Louisiana already has the second-highest average rate for home insurers at $6,354 yearly, according to Insurify. But by the end of 2024, the state could see rates surge by a whopping 23 percent, Insurify projections indicate.

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"It's very likely that premiums will continue to increase into 2025 as natural disasters like hurricanes only grow more frequent and damaging in 2024," Cassie Sheets, a data journalist at Insurify, told Newsweek. "Coastal states are at higher risk of increasing premiums due to the severity of the 2024 hurricane season."

The likely severity of this hurricane season will be felt especially hard in places like Louisiana as well as Florida, which currently has the highest home insurance premiums in the country.

There, homeowners pay nearly five times as much as the average American, with south Floridians paying up to seven times more. For Miami residents specifically, that adds up to nearly $17,000 per year.

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But Louisiana has its range of skyrocketing premiums too, with Sheets saying the average premium will likely get to $7,809 by the end of 2024.

"Outside of South Florida, New Orleans is the most expensive city in the country for home insurance," Sheets said. "That area is expected to see substantial rate hikes to account for the growing threat of hurricanes, severe storms, and flooding as climate change makes these disasters more common."

Louisiana is also currently able to raise rates prior to approval by state regulators, courtesy of some new laws that also enable home insurers to drop up to 5 percent of their homeowner insurance policies in the state each year, Sheets said.

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There are some actions you can take to reduce your insurance rates, granted the initial costs of those updates might not be cheap either. Sheets recommends installing stormproof windows and comparing coverage options.

"Installing updates like stormproof windows means your home has a lower risk of seeing damages, and your insurance company will likely reward you for taking these steps," Sheets said. "Homeowners should look into comparing coverages to make sure they are getting the best deal."

Travis Hodges, the managing director of insurance platform VIU by HUB, also said the future natural catastrophes likely arriving this hurricane season will inevitably spark higher rates in several states.

"They have to in order to support the viability of insurance carriers," Hodges told Newsweek.

But as rates jolt up, some Americans are choosing to forego insurance altogether.

Data from the Consumer Federation of American showed more than six million homeowners are living without homeowner's insurance, with $1.6 trillion left in unprotected market value vulnerable to natural disasters or other damages.

Across the board, home insurance premiums rose by 23 percent in the last year, creating a substantial burden for homeowners, according to Quadrant Information Systems.

"It puts consumers in a challenging position," Hodges said. "Bear the increasing financial strain of home insurance or risk the potential for significant financial losses in the event of property damage without it."

Several insurers have also decided against renewing policies in more expensive or disaster-prone markets, so homeowners have fewer options than ever.

In California, for instance, State Farm, Farmers and Allstate have decided to end renewal for thousands of policies or end coverage in the state altogether.

"As states in high-risk hurricane zones prepare for the upcoming season, the importance of neutral, expert advice from an insurance broker cannot be overstated," Hodges said.