You're Paying Too Much For Home Insurance If You Live Here


Home Insurance Rates Are Increasing

To many people, home insurance is a necessary evil. You hope you won’t need it (who hopes for a disaster, honestly?), but all too often, you do. Because home insurance is a necessity today, the best you can hope for is reasonable pricing. Home insurance rates are ever-increasing, causing many people to lower their coverage in order to be able to afford their insurance. There are five states in the union, however, where rate increases have skyrocketed home insurance costs in the past year. Here are the five states with the biggest rate increases in 2013, according to Perr & Knight’s RateWatch:

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5. North Carolina

  • Rate Increase (2013): 10.1%
  • Average Home Insurance Premium (Statistics Brain): $631
North Carolina’s humid subtropical climate in most of its regions make it a playground for hurricanes in the spring and summer seasons. It’s no surprise, then, that home insurance prices in this state increased in the last year. Since the turn of the century, 48 hurricanes have affected communities in North Carolina, causing 41 deaths in total. In 2003, Hurricane Isabel alone caused $450 million in damage. Home insurance companies are now worried about funding homes in this area, which is a major cause of the fee hike.

4. Kansas

  • Rate Increase: 10.3%
  • Average Home Insurance Premium: $1,004
At the heart of tornado alley lies Kansas, a state famous for its agricultural productivity, American ideals, and, of course, a little girl named Dorothy. Because Kansas is at the heartland of America, many are prone to think that their homes are safe and protected. Little do they know that Kansas experiences 96 tornadoes each year on average (National Oceanic and Atmospheric Administration). From 1950 to 1994, tornadoes caused over $1.2 billion in damages in Kansas alone. For homeowners in Kansas, this could mean constant rebuilding of sections or whole homes, and, as a result, higher insurance premiums.

3. Kentucky

  • Rate Increase: 10.9%
  • Average Home Insurance Premium: $874
Though Kentucky is not famous for one type of storm in particular, the wide variety of storms that hit the state annually has caused insurance premiums to increase since 2000. In less than 14 years, Kentucky filed 24 major disaster declarations through the Federal Emergency Management Agency (FEMA), disasters which cost the state and federal governments and individual homeowners a lot of money. Given the inherent risk of living in Kentucky, rates are not likely to go down. Residents of Kentucky should find out what disasters they are at risk for and plan accordingly to lower their premiums.

2. Florida

  • Rate Increase: 11%
  • Average Home Insurance Premium: $2,280
As a national hub for retirees and one of the sunniest states in the union, at first glance, Florida looks problem-free in regards to natural disasters. But the numbers tell a different story. The natural disasters occurring in Florida include:
  • Hurricanes
  • Tropical storms
  • Tropical depressions
  • Tornadoes
  • Wildfires
  • Floods
Increased population in Florida will only escalate the amount of damage and the amount of home insurance claims in the state. From 1930 to 2000, the population of Miami-Dade County rose by 1,800 percent, but the number of hurricanes in the North Atlantic have been increasing. Residents of Florida should not be surprised of additional rate increases in home insurance in the coming years.

SEE ALSO: Home Insurance Advice: Mudslides, Landslides, And Getting It All Covered

1. Oklahoma

  • Rate Increase: 12.1%
  • Average Home Insurance Premium: $1,572
Yet another state that is in the center of tornado alley is Oklahoma. Because of its location, it’s really no surprise that Oklahoma has experienced about 55 twisters annually since 1950. Killer tornados in recent years have caused widespread devastation. Last year alone, insurance payouts topped the list for all of America at $2 billion. The resulting rate increase should not come as a surprise, especially because of the increase in population over the years.
Date of original publication:
Updated on: November 10, 2015

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