Property insurance rates have spiked since 2021 due to the increasing frequency of climate-related natural disasters, inflation in the cost of building materials and supply chain issues. The typical homeowner saw an average increase of $648 in their annual premium from 2021 to 2024. And those rates are expected to increase by an average of 8% nationwide this year — with homeowners in some states facing much higher increases, such as a projected 27% hike in Louisiana.
An increasing number of American homeowners are linking those increases to climate change. A majority of them (72%) say that natural disasters such as hurricanes, floods and wildfires exacerbated by climate change are somewhat or very responsible for the rise in homeowner insurance costs, according to a poll by Data For Progress.
