The cost of property insurance in the US rose to an all time-high in the first half of the year, as homeowners faced sharp price increases in states recently affected by climate-related disasters, such as California.
The average insurance payment for a mortgaged single-family home in the US rose 4.9% in the first half of 2025 — resulting in an average annual payment of almost $2,370, according to Intercontinental Exchange Inc.’s Mortgage Monitor report released Monday.
North Carolina and South Carolina — which were hit by flooding last year from Hurricane Helene — both experienced sharp increases, as did California, which is still recovering from January wildfires.
Climate change is increasing the frequency of disasters such as wildfires and hurricanes across the US, forcing carriers to increase premiums or walk away from the most disaster-prone markets.
In Los Angeles, where sprawling wildfires obliterated entire neighborhoods, homeowners’ insurance bills rose by 9% in the first six months of this year, or almost 20% from mid-2024.
Californians still pay some of the lowest US premiums for their home insurance, while homeowners in states prone to hurricane, storm and hail damage across the South and the Midwest pay the most.
In Florida, legislation aimed at spurring the return of private insurers has led to a sharp reduction in the number of homeowners on state-backed plans, according to the report.
In Miami, the most expensive US property insurance market, the share of single-family mortgage holders with state-backed insurance has fallen to 27% from 46% over the past 18 months.
Copyright 2025 Bloomberg.
Topics
USA
Property
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