Homeowners Insurance Rates Are Rising—Here’s Why
If you’ve noticed your homeowners insurance premium going up, you're not imagining it. Over the past few years, rates have been climbing steadily nationwide. The 🔗average annual premium now sits around $2,801, reflecting more than a 40% increase since 2019.
These increases are tied to broader industry shifts rather than individual claims. Factors like inflation, changing weather patterns, and rising home values are prompting insurers to reassess their pricing models—and while every home is unique, it’s helpful to know what’s influencing the numbers.
📊 What’s Behind the Increase?
Industry experts point to a few key drivers for the recent rate hikes:
🏗️ Higher rebuild costs: Construction materials and labor have become significantly more expensive.
🌩️ More frequent weather events: Severe storms, wildfires, and other disasters are leading to higher claim volumes.
📈 Rising property values: As home prices increase, so do replacement costs—resulting in larger coverage amounts.
🗺️ Updated risk models: Insurance carriers are using new mapping and forecasting tools that may change how risk is assessed.
Even without filing a claim, homeowners may see changes based on how insurers evaluate market-wide trends and regional conditions.
📍 Arizona Snapshot: Average Premiums by County
Here’s a look at average homeowners insurance premiums in the last 90 days across some key Arizona counties—broken out by resale homes and new builds:
💡 What Homeowners Can Do
While rising premiums may be a reality, there are proactive steps homeowners can take:
🛍️ Compare quotes annually—rates and discounts can vary widely between carriers.
📑 Review your coverage regularly to ensure it aligns with your current home value and risk level.
🔧 Ask about savings for home improvements like security systems, updated roofing, or energy-efficient upgrades.
🧠 Bundle smartly—combining home and auto policies may offer additional savings.
If your insurance is included in your monthly mortgage payment through escrow, reviewing your policy each year can also help you stay ahead of any payment adjustments.
🐼 Mama Bear’s Final Word
Homeowners insurance plays a key role in your monthly budget—and with rates evolving, staying informed makes all the difference. Understanding the “why” behind the increase can help you feel more confident about your coverage, and maybe even uncover ways to save.
📞 Curious how your premium might affect your mortgage or escrow balance? I’ve got you. Hit me up! Let’s make sure your policy is doing its job.
