Home insurance rates are up more than 34% nationwide

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This week is threatening to be a rough one for weather disasters. Forecasters expect a hurricane to hit Florida as early as Thursday. California is facing a week of high heat and high winds – a bad combination for wildfires.

In both states, rising disaster risk has sent home insurance costs through the roof in recent years.

But home insurance premiums aren’t just rising in the obvious disaster-prone states. Nationwide, rates rose 34% on average from 2017 to 2023. And they’re up more than 40% in about a dozen states, including some you might not expect, such as Arizona, Nebraska and Minnesota.

Why is home insurance getting so expensive? It’s a question I hear a lot. Andrew Hoffman, a University of Michigan business professor who follows the insurance industry, explains the factors driving the increase in an article today. He’s also joining us on Oct. 9 for a public webinar to delve deeper into the changes underway in insurance costs and coverage and what’s ahead. Sign up here to join the webinar at 2:30 p.m. ET/11:30a PT Oct. 9.

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Stacy Morford

Environment + Climate Editor

The U.S. has seen a large number of billion-dollar disasters in recent years. AP Photo/Mark Zaleski

Why home insurance rates are rising so fast across the US – climate change plays a big role

Andrew J. Hoffman, University of Michigan

Insurers are raising rates quickly, and it’s not just in California and Florida. They’re often shrinking coverage at the same time.

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