Record-Breaking Insurance Premium Increases
In 2024, property insurance costs for mortgaged single-family homes surged by an average of 14%, marking a record $276 increase in annual premiums, according to ICE Mortgage Technology’s latest Mortgage Monitor report. This brings the national average property insurance cost to $2,290 per year.
Over the past five years, premiums have risen by an average of $872—or 61%—nationwide, with some cities experiencing even sharper increases.
Regions Hit Hardest by Rising Costs
The cities that experienced the steepest percentage increases in 2024 included:
- Seattle (+22%)
- Salt Lake City (+22%)
- Los Angeles (+20%)
When looking at dollar increases, the most significant jumps were seen in:
- Dallas (+$606)
- Houston (+$515)
Although Florida's premium increases were lower than the national average on a percentage basis, the state remains one of the most expensive places for property insurance.
Homeowners Respond by Switching Providers
With insurance costs continuing to rise, a record 11.4% of borrowers switched providers in 2024, up from 9.4% in 2023. This increase was driven by two key factors:
- Rising non-renewal rates, as insurers pull back from high-risk areas.
- Homeowners shopping for lower premiums to offset rising costs.
Some cities saw a much higher rate of policy switching. In Miami, nearly a quarter of mortgage holders changed insurance providers in 2024, followed closely by New Orleans and Orlando at 23%.
In most markets, homeowners who switched policies paid at least 10% less than those who stayed with their previous carrier. However, California proved to be an exception—homeowners who switched in cities like San Diego, Sacramento, and Los Angeles ended up paying at least 15% more than those who kept their existing policies.
Higher Deductibles to Offset Premium Hikes
Another strategy homeowners are using to counter rising costs is increasing their deductibles. Borrowers who took out new mortgages in 2024 had:
- 19% ($390) higher deductibles than the average mortgage holder.
- 12% ($284) lower annual insurance premiums compared to the broader market.
This trend suggests that homeowners are prioritizing lower monthly costs while accepting greater financial responsibility in the event of a claim.
Looking Ahead: The Role of Insurance Comparison Tools
As more homeowners seek ways to manage rising insurance costs, there is an increasing opportunity for lenders and servicers to provide embedded insurance comparison tools. ICE Mortgage Technology has integrated such tools into its platforms to simplify the process and help borrowers find the most cost-effective coverage.
With property insurance costs continuing to rise, understanding regional trends and exploring options like switching providers or adjusting deductibles can help homeowners navigate the changing landscape.
