As the region experiences steady growth, homeowners are facing another rising trend: sharply increasing insurance premiums.
According to an analysis by Lending Tree, using data from RateWatch and S&P Global, the average annual home insurance rates across the U.S. climbed modestly—between 1% and 3%—from 2019 to 2021. However, starting in 2022, these increases accelerated dramatically, with rates jumping 5% that year and soaring over 11% in each of the last two years. Overall, this amounts to a staggering 40% spike in premiums over the past six years.
What’s driving these surges? The rise in natural disasters such as wildfires and floods is not only threatening lives but also homes, creating significant financial strain on insurance providers. Some insurers have even stopped offering coverage in high-risk areas, like certain parts of California, while obtaining insurance around Idaho’s forested regions has become increasingly challenging and expensive.
Looking at state-specific data reveals even more striking trends:
Colorado tops the list with a 76% increase in home insurance costs, largely driven by devastating wildfires.
Nebraska, second on the list, has been heavily impacted by flooding.
Utah, bordering Idaho, ranks third, influenced by increased development in wildland areas.
California, despite its wildfire risks, ranks 10th, possibly reflecting insurers pulling back from the market.
Oregon ranks 13th with rate hikes exceeding 51%.
Idaho itself sits at 17th nationally, with premiums rising more than 45% in the past six years. While this is lower than some neighboring states, it still represents a significant increase for homeowners.
As natural disasters become more frequent and severe, homeowners in Idaho and across the country should prepare for continued upward pressure on insurance costs.
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