Home Insurance Rate Increases by State: 2026 Tracker
The national average home insurance premium increased 4% in 2026, but the range is staggering: from +1.2% in Hawaii to +58% in Louisiana. If your renewal shocked you, here is why and what you can do.
National Avg Increase
+4%
2025 to 2026
Largest Increase
+58%
Louisiana
Smallest Increase
+1.2%
Hawaii
States Over 10%
10
States with double-digit increases
States With the Largest 2026 Increases
Louisiana
Repeated hurricane losses (Laura, Ida, Delta, Zeta). Multiple carrier insolvencies. Reinsurance costs have tripled. Coastal erosion accelerates storm surge damage inland. Citizens (state insurer of last resort) growing rapidly.
Michigan
Water damage claims crisis. Michigan has some of the oldest housing stock and sewer infrastructure in the country. Freeze-thaw cycles burst pipes. Insurers have been under-pricing Michigan for years and are now correcting.
Virginia
Reinsurance cost pass-through. Virginia was historically under-rated for hurricane risk, but improved climate models now show higher coastal exposure. Carriers are correcting rates to match updated risk assessments.
Kentucky
Severe tornado and flooding events in 2021-2023 (including the December 2021 tornado outbreak). Rate corrections are catching up to actual loss experience.
Minnesota
Severe hailstorm frequency is increasing. 2024 saw record-breaking hail events across the Upper Midwest. Carriers are repricing for the new normal.
Nebraska
The June 2024 Omaha hailstorm caused $2.5 billion in insured losses, the costliest single hailstorm in U.S. history. Statewide repricing followed.
Oklahoma
Continued Tornado Alley and hail exposure. Oklahoma already had high premiums; increases here are rate adequacy adjustments rather than sudden corrections.
Colorado
Hailstorm frequency in the Front Range corridor (Denver-Colorado Springs) drives most of the increase. The Marshall Fire (2021) also triggered long-term wildfire risk repricing.
California
Wildfire risk repricing after years of regulatory delay. State Farm and Allstate stopped writing new policies in CA in 2023. FAIR Plan enrollment has surged. Carriers that remain are raising rates to cover wildfire reinsurance costs.
Kansas
Severe convective storm losses continue to exceed historical averages. Hail and tornado frequency is structurally higher than the models used 10 years ago.
States With the Smallest Increases
| State | 2026 Change | 2026 Average |
|---|---|---|
| Hawaii | +1.2% | $659 |
| Vermont | +1.5% | $804 |
| Delaware | +1.8% | $1,039 |
| Oregon | +1.9% | $978 |
| Utah | +2.0% | $1,089 |
| Alaska | +2.1% | $1,289 |
| Florida | +2.1% | $7,136 |
| New Hampshire | +2.3% | $1,193 |
| Maine | +2.5% | $1,394 |
| Washington | +3.0% | $1,316 |
Note: Florida's small 2026 increase (+2.1%) follows massive rate corrections in 2023-2025 that already brought premiums to the highest in the nation. The base is so high that even small percentage increases represent hundreds of additional dollars.
Why Rates Are Rising Nationwide: Three Structural Causes
Climate change is increasing severe weather frequency
The number of billion-dollar weather events in the U.S. has doubled over the past decade. Hurricanes are intensifying faster, hailstorms are becoming larger and more frequent, and wildfire seasons are longer. Insurance is priced on future risk, and the future risk profile is worsening across most of the country.
Construction costs have not stabilized
Building materials (lumber, roofing, concrete) and labor costs remain elevated compared to pre-2020 levels. When a home is damaged, the cost to repair it is 20-40% higher than it was five years ago. Every claim is more expensive, which means every premium must increase to fund those claims.
Reinsurance market tightening
Reinsurance (insurance for insurance companies) costs have surged after consecutive years of catastrophe losses exceeding $100 billion globally. Swiss Re and Munich Re have raised prices 20-40% since 2022. These costs are passed directly to homeowners through premium increases. This affects every state, not just those with catastrophe exposure.
What Homeowners Can Do
Increase Under 10%
- Review your deductible (consider raising to $1,500-2,500)
- Ask about new discounts you may qualify for
- Verify your home's rebuild cost is accurate
- Consider paying annually instead of monthly
Increase of 10-20%
- Get 3-5 competing quotes immediately
- Consider bundling home + auto if you have not already
- Ask about wind mitigation credits in storm-prone areas
- Improve your credit score if below 750
Increase Over 20%
- Shop aggressively with an independent agent
- Consider a higher deductible ($2,500-5,000)
- Get a wind mitigation inspection (coastal states)
- Explore a separate wind-only policy in hurricane states
- Upgrade your roof if it is older than 10 years
Insurer Exits and Last-Resort Plans
In the most severely affected states, private carriers are not just raising rates. They are leaving entirely. This forces homeowners into state-run insurers of last resort, which are more expensive and provide less coverage.
Florida: Citizens Property Insurance
Citizens now covers over 1.4 million policies, up from 500,000 in 2019. It was designed as an insurer of last resort but has become the largest carrier in the state. If Citizens suffers a major loss, it can levy assessments on ALL Florida policyholders (including those not insured by Citizens) to cover the shortfall.
California: FAIR Plan
After State Farm and Allstate stopped writing new policies in 2023, FAIR Plan enrollment surged. The FAIR Plan provides basic fire coverage but with lower limits and fewer coverages than standard policies. Many California homeowners now need a FAIR Plan policy plus a separate "Difference in Conditions" policy to match what a standard policy would have provided.
Louisiana: Carrier Insolvencies
At least 12 Louisiana property insurers have become insolvent since 2020. Policyholders of insolvent carriers are covered by the Louisiana Insurance Guaranty Association (LIGA), but with lower limits and slower claims processing. Louisiana Citizens has grown but remains a last-resort option with limited coverage.