Homeowners across the United States have seen annual homeowners insurance premiums rise by an average of 24% over the past three years, equivalent to roughly $648 per year, according to a report from the Consumer Federation of America (CFA).
In Virginia, premiums increased by 31% ($528 per year), while in the Hampton Roads area, homeowners experienced a 33% hike ($835 per year). In Hampton Roads specifically, average annual premiums jumped from $2,509 in 2021 to $3,344 in 2024.
Sharon Cornelissen, CFA director of housing, said the rising costs are exacerbating the housing crisis and placing increasing strain on homeowners. “If we want to protect affordable homeownership, federal and state policymakers need to take action to address rising costs and reduce risk for individuals and communities,” she noted.
The Virginia Bureau of Insurance highlighted several factors influencing premium increases. Katha Treanor, communications manager for the State Corporation Commission, explained that insurers consider home construction costs, labor and material availability, home location, age and size of the property, and the condition of exterior materials. “Inflation impacts the cost of materials, supplies, appliances, personal property, and labor. As these repair and replacement costs rise, so does the cost of insurance protection,” Treanor said.
Additionally, natural disasters such as hurricanes, wildfires, and tornadoes are becoming more frequent and severe, increasing potential damage to homes and further driving up premiums. Consumers are encouraged to take mitigation measures—such as roof fortification, removal of hazardous trees, and installation of double-pane windows—to reduce risk and qualify for discounts.
The CFA report is intended as a wake-up call for legislators and regulators, highlighting the intersecting challenges of housing, climate change, and property insurance. The analysis used major insurers’ pricing algorithms to generate quotes for homes valued at $350,000, assuming mid-tier credit scores and hurricane coverage in Virginia.
The report includes three key recommendations:
Require insurers to publicly release data on underwriting, pricing, coverage, and claims annually.
Expand mitigation programs to help homeowners protect their homes and earn lower premiums.
Establish a public reinsurance program to stabilize the market and expand access to affordable, high-quality coverage.
Douglas Heller, CFA director of insurance, emphasized that while homeowners face unprecedented premium hikes, regulators and lawmakers have not done enough to collect and release essential data, which is critical for developing effective solutions and holding insurers accountable.
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