Adobe
Property insurance rates, which went up 59 percent nationwide over the last 10 years, will continue their upward trajectory in most states this year, according to a new analysis from ValuePenguin.com.
The financial services website forecasts insurance rate increases will outstrip inflation in 31 states, with California, Nebraska and Illinois facing the steepest hikes of 5.4 percent or more. In California, property insurance losses soared in the wake of 2018’s devastating Camp Fire, leading insurance companies in the state to seek aggressive rate increases, the study said.
A property insurance company’s paid claims as a result of such losses, divided by premium amounts it has received from policyholders, is called the loss ratio.
In addition to natural disasters such as fires and hurricanes, another factor driving up insurance rates is high construction costs, which fluctuate based on the price of labor and materials in different regions, according to the analysis.
ValuePenguin.com, which examined public insurer filings to make its predictions, suggests that homeowners faced with rising property insurance rates can either shop around for another company or increase their deductible.
---
Projected Property Insurance Rate Changes
| Rank (Highest to Lowest) | State | Rate Change
(2019-2020) | Industry Loss Ratio
(2014-2018) | Average Insurance Cost |
| 1 | California | 6.3% | 113% | $1,826 |
| 2 | Nebraska | 5.6% | 88% | $1,749 |
| 3 | Illinois | 5.4% | 69% | $1,405 |
| 4 | South Dakota | 4.3% | 78% | $2,364 |
| 5 | Utah | 4.2% | 54% | $711 |
| 6 | Rhode Island | 4.1% | 55% | $1,414 |
| 7 | Georgia | 4.0% | 67% | $1,713 |
| 8 | Virginia | 3.8% | 57% | $1,341 |
| 9 | Idaho | 3.5% | 73% | $940 |
| 10 | New Mexico | 3.5% | 65% | $1,284 |
| 11 | Washington | 3.5% | 57% | $1,235 |
| 12 | Kansas | 3.4% | 46% | $2,461 |
| 13 | Maryland | 3.4% | 63% | $1,392 |
| 14 | Florida | 3.3% | 62% | $1,727 |
| 15 | Massachusetts | 3.2% | 52% | $1,168 |
| 16 | Minnesota | 3.1% | 57% | $1,952 |
| 17 | Connecticut | 2.8% | 48% | $1,712 |
| 18 | Wisconsin | 2.8% | 51% | $1,313 |
| 19 | Hawaii | 2.7% | 35% | $1,083 |
| 20 | Nevada | 2.7% | 53% | $1,047 |
| 21 | Alabama | 2.5% | 51% | $1,850 |
| 22 | Arizona | 2.3% | 60% | $1,528 |
| 23 | Arkansas | 2.3% | 53% | $1,250 |
| 24 | Montana | 2.1% | 80% | $1,939 |
| 25 | New York | 2.1% | 48% | $974 |
| 26 | Oregon | 2.1% | 54% | $1,208 |
| 27 | Delaware | 2.0% | 50% | $598 |
| 28 | Iowa | 1.9% | 62% | $1,421 |
| 29 | North Carolina | 1.9% | 60% | $992 |
| 30 | Oklahoma | 1.6% | 42% | $2,559 |
| 31 | Pennsylvania | 1.6% | 54% | $640 |
| 32 | Texas | 1.6% | 64% | $2,451 |
| 33 | North Dakota | 1.5% | 50% | $1,901 |
| 34 | Missouri | 1.4% | 56% | $1,914 |
| 35 | New Hampshire | 1.4% | 48% | $773 |
| 36 | New Jersey | 1.2% | 49% | $1,430 |
| 37 | Colorado | 1.0% | 94% | $1,813 |
| 38 | Maine | 1.0% | 43% | $849 |
| 39 | Michigan | 1.0% | 57% | $1,493 |
| 40 | Mississippi | 0.9% | 46% | $1,442 |
| 41 | South Carolina | 0.9% | 47% | $2,321 |
| 42 | District of Columbia | 0.8% | 52% | N/A |
| 43 | Indiana | 0.6% | 52% | $901 |
| 44 | Ohio | 0.5% | 46% | $1,214 |
| 45 | Tennessee | 0.4% | 52% | $1,214 |
| 46 | Wyoming | 0.4% | 78% | $1,263 |
| 47 | Louisiana | 0.1% | 34% | $1,568 |
| 48 | Kentucky | 0.0% | 50% | $1,407 |
| 49 | Vermont | 0.0% | 49% | $614 |
| 50 | West Virginia | -0.6% | 55% | $1,416 |
| 51 | Alaska | -0.7% | 46% | $1,356 |
Alerts Sign-up