If your home insurance bill has been climbing, you’re not imagining it—and you’re far from alone. A recent Consumer Reports survey of nearly 24,000 homeowners across the U.S. reveals a stark reality: premiums are surging, insurers are exiting high-risk markets, and customer satisfaction varies dramatically by provider.
Skyrocketing Premiums: A 24% Jump in 3 Years
Homeowners insurance premiums have increased by an average of 24% over the past three years—and for some, the spike has been far worse.
- 1 in 10 homeowners saw their rates jump 50% or more
- Some policyholders report rates nearly doubling at renewal
Three major factors are driving the increase
- Construction inflation – Building materials and labor costs have risen up to 40% over the last decade
- More frequent natural disasters – Hurricanes, wildfires, and floods are increasing both in number and severity
- Higher reinsurance costs – Insurers themselves are paying more to protect their own balance sheets, and those costs are passed on to consumers
Insurers Are Pulling Out of Key Markets
Some major insurers are retreating from high-risk states, leaving homeowners scrambling for coverage.
- California and Florida are seeing the biggest pullbacks
- Allstate and State Farm stopped writing new policies in California
- Farmers and Progressive have scaled back in hurricane-prone Florida
Why
The math is simple: rising risks mean rising losses. For insurers, it’s no longer sustainable to offer policies in areas where claims are becoming too frequent and costly.This leaves many homeowners dependent on state-backed insurers of last resort, like Citizens Property Insurance Corporation in Florida—often with higher premiums and limited service.
Top-Rated Insurers: Who’s Doing Well
Despite the challenges, some insurers are earning high marks for service, value, and stability.
- Score: Top-rated for customer service and policy clarity
- Customer loyalty: Median policyholder tenure is 19 years—the longest in the survey
- Perks: Real people answer phones, minimal rate hikes
- Catch: Only available in 5 states – Connecticut, Maryland, New Jersey, Ohio, Pennsylvania
Erie Insurance – Best Value
- Lowest typical premium: $1,153 per year
- Praise: Local agents provide personalized support and help with plan selection
- Availability: 12 states and Washington D.C.
USAA – Best for Military Families
- High satisfaction: Known for quick, friendly, and knowledgeable service
- Discounts: Bundling, smart home devices, and military-specific savings
- Downside: Higher price tag—$2,013 per year on average
- Eligibility: Open to active, retired military and their families
The Lowest Rated: Citizens Property Insurance Corp
Citizens Property Insurance, Florida’s state-backed insurer of last resort, scored a dismal 14 out of 100—the lowest in the survey.
- Typical annual premium: $2,991
- Why so low
- Limited coverage options
- Poor customer service ratings
- High rates with little flexibility
Most policyholders choose Citizens not by preference, but by necessity—other insurers won’t cover them due to risk.
What Should You Do
The insurance landscape is changing fast. Here’s how to protect yourself.
- Shop around annually – Don’t auto-renew without checking alternatives
- Compare quotes – Even if you love your current provider, rates vary widely
- Consider bundling – Auto and home insurance can yield significant discounts
- Review your policy details – Watch for hidden changes in deductibles or coverage
- Ask about discounts – Safety upgrades, loyalty, and affiliations can save you money
The Future of Home Insurance
With climate change accelerating and construction costs staying high, insurers will likely continue raising rates and exiting risky areas. The result is a more fragmented, expensive market.But there’s power in awareness. By staying informed and proactive, you can find a provider that offers value, reliability, and peace of mind—even in uncertain times.Bottom line: Don’t settle. Your home deserves better coverage—and you deserve better service.
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