Southerners are especially feeling the strain of more expensive coverage, the study found, as their average annual insurance premiums come in at $1,834; above the national average of $1,584. (Credit: SERSOLL/Adobe Stock)
Forty-three percent of homeowners say they have seen an increase in their premiums in the past year, and one-in-ten plan to switch carriers in the near future – most of them to combat these rising costs – according to a recent report from SafeHome. Another 6% plan to save money by changing their insurance coverage, including dropping optional coverages or upping their deductibles.
Southerners are especially feeling the strain of insurance costs, the study found, as their average annual insurance premiums come in at $1,834; above the national average of $1,584. Homeowners in the northeastern U.S. have the lowest average premiums at $1,301.
The higher premiums in the south have been largely influenced by hurricane activity, and CoreLogic estimated losses from 2022′s Hurricane Ian to be between $41 billion and $70 billion across affected portions of the south, including Florida and South Carolina.
The popularity of swimming pools in the warmer southern states also affects premiums, and SafeHome found those who had in-ground swimming pools at their home pay around 40% more for homeowners insurance each year because of the drowning and injury risk pools present.
The report also partially attributes the rising cost of homeowners coverage to houses being larger than they have been in the past. The average house in 1970 measured about 1,800 square feet. After 2010, the average increased to just over 2,400 square feet. Since insurers consider the cost to rebuild the home when determining premiums, larger houses – combined with currently inflated construction and labor costs – lead to higher premiums for customers.
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