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Home Insurance Premiums Surge 24% Amid Climate Crisis

10/6/2025

30 4 Full Breakdown

Summary

Story summary

Home insurance premiums have risen 24% since 2021, outpacing inflation.
The Federal Reserve reports 7% of homeowners lacked insurance last year, mainly affordability.
Utah and Illinois have seen large rate hikes linked to climate disasters and rising costs.
California's FAIR Plan faces scrutiny over claims handling and a 35.8% rate increase; homeowners should review coverage and shop for rates.

History

Historical Context

Hurricane Andrew struck Florida in 1992, causing $26.5 billion in damages and leading to the bankruptcy of eleven insurance companies. This disaster prompted the creation of Citizens Property Insurance Corporation to provide coverage for homeowners unable to secure insurance. Today, rising premiums, which have increased by 24% since 2021, reflect ongoing challenges in the insurance market exacerbated by climate-related disasters.

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Story summary

Home insurance premiums have risen 24% since 2021, outpacing inflation.
The Federal Reserve reports 7% of homeowners lacked insurance last year, mainly affordability.
Utah and Illinois have seen large rate hikes linked to climate disasters and rising costs.
California's FAIR Plan faces scrutiny over claims handling and a 35.8% rate increase; homeowners should review coverage and shop for rates.

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