Wildfires, hurricanes, and hailstorms are costing you: Insurance premiums spike nationwide

Not only are housing prices continuing to rise, but the overall cost of homeownership is trending upward as well. Over the past two years, Insurify, a quote comparison tool, has tracked a 20% increase in home insurance costs—and another hike is expected this year across all 50 U.S. states.

In 2025, average annual home insurance premiums are projected to be highest in Florida ($15,460), Louisiana ($13,937), and Oklahoma ($8,369). Florida and Louisiana also topped the list in 2024, but this year, Louisiana is expected to see a 27% increase—the largest in the country—amounting to an average jump of $2,974.

What’s Driving Premiums Up?

As climate change fuels more intense and unpredictable storms, insurance companies are facing higher payouts. In response, they’re raising premiums, putting added pressure on homeowners trying to protect their properties.

The severity of recent storms and rising costs for insurance companies have led some providers to stop operating in states where natural disasters—such as hurricanes and wildfires—are becoming more destructive. Back in 2014, the Insurance Information Institute described losses from tropical cyclones, wildfires, heatwaves, and droughts as “minor.” A decade later, losses from just those two categories—cyclones and wildfires—have surged to nearly $50 billion.

These losses have led to a rapid exodus of insurance companies from some states, while others have seen providers drastically scale back their offerings. In California, Allstate and State Farm paused the issuance of new policies, and Nationwide’s subsidiary, Nationwide Private Client, notified customers that their coverage would end in June 2025, requiring them to find a new provider.

A similar chain of events has unfolded in Florida. Nationwide has pulled out of the state entirely, as has Farmers.

For residents in these states—and others experiencing a decline in major insurance providers—the result is often higher costs and more demanding requirements to secure coverage.

CNBC reported that increasingly, homeowners seeking insurance are being asked to make last-minute upgrades or changes to their properties. In an interview with the outlet, Bill Baldwin, owner of a real estate company in Houston, shared examples of these unexpected demands. “A new roof, even for homes with roofs only seven or ten years old,” was one such requirement. He also mentioned cases where insurers asked homeowners to remove trees from a neighbor’s yard—a big ask, especially if you’ve just moved in.

Since many customers have limited options when shopping for coverage, insurers that are willing to offer a plan often hold significant leverage. They can use that leverage to require homeowners to make changes to their property, changes that may help reduce the insurer’s potential payout in the event of a natural disaster or other claim-worthy incident.

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