QuoteWizard®, a LendingTree company, and one of the nation's leading online insurance marketplaces, today released its report that found natural disasters have dramatically increased home insurance rates in every state around the country.
Every year in the United States, natural disasters account for tens of billions of dollars in damages. A significant portion of those damages falls on the shoulders of insurance companies. When insurance companies experience huge loss from natural disaster-related claims, they compensate for that loss with an increase in home insurance rates.
QuoteWizard looked at the National Association of Insurance Commissioners (NAIC'S) 2007 home insurance data and compared it to 2016 for all 50 states to find the home insurance rate increases.
Key Findings:
- Eleven out of the top 15 states were in the larger Tornado Alley boundaries (Oklahoma, Kansas, Colorado, Nebraska, Arkansas, Louisiana, Minnesota, Kentucky, South Dakota, Mississippi, and Texas).
- The average home insurance rate hike for those top Tornado Alley states in the last decade was $580. This was an average increase of 67 percent. In 2016, those states pay on average $1509 per year for home insurance.
- Other than Rhode Island and Connecticut, the Northeastern states sit lower on rate increases, despite receiving heavy rain, hail, and snowstorms. The average rate increases for New Jersey, New York, Maryland, Virginia, West Virginia, Maine, New Hampshire, Delaware, Pennsylvania, Vermont, and D.C. was $274. This was an average 39 percent increase. These states paid an average of $1008 in 2016.
- Western states have the lowest rate increases in the country. Nevada, California, Alaska, Utah, Oregon, Arizona, Hawaii, Idaho, Washington are all among the least 30 home insurance rate increase states. The average rate hikes for these states was only $167. This equates to an average 30 percent increase. These states paid an average of $821in 2016.
- While California has the second lowest rate increases since 2007 (only $75), it already pays some of the highest rates in the country ($1000). Florida pays the most at $1918, but only experienced a $284 spike in the last decade, a 25 percent increase.
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Rank
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State | 2007 Premium | 2016 Premium | % Increase | $ Increase |
| 1 | Oklahoma | $1,054 | $1,875 | 78% | $821 |
| 2 | Kansas | $904 | $1,548 | 71% | $644 |
| 3 | Colorado | $826 | $1,446 | 75% | $620 |
| 4 | Nebraska | $807 | $1,402 | 74% | $595 |
| 5 | Arkansas | $762 | $1,348 | 77% | $586 |
| 6 | Louisiana | $1,400 | $1,967 | 41% | $567 |
| 7 | Missouri | $726 | $1,280 | 76% | $554 |
| 8 | Rhode Island | $950 | $1,496 | 57% | $546 |
| 9 | Minnesota | $800 | $1,340 | 68% | $540 |
| 10 | Connecticut | $929 | $1,455 | 57% | $526 |
| 11 | Kentucky | $578 | $1,085 | 88% | $507 |
| 12 | South Dakota | $618 | $1,125 | 82% | $507 |
| 13 | Mississippi | $1,019 | $1,525 | 50% | $506 |
| 14 | Texas | $1,448 | $1,937 | 34% | $489 |
| 15 | Alabama | $905 | $1,386 | 53% | $481 |
| 16 | South Carolina | $808 | $1,285 | 59% | $477 |
| 17 | Georgia | $724 | $1,200 | 66% | $476 |
| 18 | North Dakota | $771 | $1,239 | 61% | $468 |
| 19 | Wyoming | $656 | $1,120 | 71% | $464 |
| 20 | Tennessee | $723 | $1,185 | 64% | $462 |
| 21 | Montana | $700 | $1,130 | 61% | $430 |
| 22 | Massachusetts | $1,023 | $1,451 | 42% | $428 |
| 23 | North Carolina | $674 | $1,098 | 63% | $424 |
| 24 | New Jersey | $776 | $1,174 | 51% | $398 |
| 25 | Florida | $1,534 | $1,918 | 25% | $384 |
| 26 | New York | $936 | $1,309 | 40% | $373 |
| 27 | Indiana | $647 | $1,003 | 55% | $356 |
| 28 | Illinois | $700 | $1,042 | 49% | $342 |
| 29 | Iowa | $610 | $945 | 55% | $335 |
| 30 | Maryland | $692 | $1,022 | 48% | $330 |
| 31 | New Mexico | $667 | $996 | 49% | $329 |
| 32 | Washington | $506 | $822 | 62% | $316 |
| 33 | Ohio | $540 | $850 | 57% | $310 |
| 34 | Virginia | $683 | $966 | 41% | $283 |
| 35 | Idaho | $422 | $703 | 67% | $281 |
| 36 | Wisconsin | $491 | $762 | 55% | $271 |
| 37 | West Virginia | $646 | $917 | 42% | $271 |
| 38 | Maine | $596 | $866 | 45% | $270 |
| 39 | New Hampshire | $699 | $965 | 38% | $266 |
| 40 | Delaware | $559 | $816 | 46% | $257 |
| 41 | Pennsylvania | $689 | $927 | 35% | $238 |
| 42 | Michigan | $721 | $952 | 32% | $231 |
| 43 | Vermont | $704 | $898 | 28% | $194 |
| 44 | Hawaii | $850 | $1,026 | 21% | $176 |
| 45 | Arizona | $634 | $803 | 27% | $169 |
| 46 | Oregon | $496 | $659 | 33% | $163 |
| 47 | Utah | $505 | $664 | 31% | $159 |
| 48 | D.C. | $1,089 | $1,225 | 12% | $136 |
| 49 | Alaska | $861 | $974 | 13% | $113 |
| 50 | California | $925 | $1,000 | 8% | $75 |
| 51 | Nevada | $695 | $742 | 7% | $47 |
