Home insurance premiums are rising as Americans flock to bad-weather states

scientific reseach It provides a clear link between climate change, sharp rises in temperatures, floods, wildfires, and coastal sea level rise across the United States.

The risk is higher in the Sun Belt, which is growing rapidly, yet Americans move directly into risk areas. Hurricane Ian alone killed more than 150 Floridians, knocked out power to 2.6 million residents, and left Florida with bills estimated at nearly $113 billion in its wake.

Many new residents cite the cost of living as a major factor behind their moves, but home insurance costs are rising faster than the national average, which means homeowners should prepare for sticker shock.

In Florida, the average home insurance premium in 2019 was $1,988. Today, it’s $2,714 — an increase of $726.

Florida’s population grew by more than 318,000 new residents in 2022, representing a population increase of 1.9 percent last year — the largest increase in the country. Texas, which has more than 230,000 new residents, has been doing well.

In Colorado, where home insurance costs have risen 41 percent over the past eight years, 5,376 new residents arrived last year, representing a half-percentage-point increase in its population. In South Dakota, 8,424 new residents moved to the sparsely populated state in 2022, while insurance costs jumped 39 percent since 2015. In dry, sunny Arizona, nearly 71,000 new residents flocked in 2022 costs increased by 28 percent.

Conversely, countries that have lost large numbers of populations have seen a gradual rise in insurance rates. New York lost the most population in 2022 — nearly 300,000 residents — but saw home insurance rise just 17 percent, several points below average. Louisiana, West Virginia and Illinois, which occupy the next three places in terms of population loss, also saw slower rate increases.

California bucked this trend in several ways. Despite being hit by wildfires and severe storms in recent years, home insurance rates have only increased by 25 percent, less than the increase in other coastal states. California lost 343,230 residents, which is a decrease of 0.3 percent, last year.

With two out of every three homes in America Already insuredSkyrocketing prices may tempt homeowners to cut back on disaster coverage even further, putting them at greater risk when severe weather hits.

They may also forgo the extra coverage they need more than ever. While mortgage lenders typically require homeowners to carry home insurance, most policies do not cover flooding. With budgets limited, Mr. Hausfeld predicts that more homeowners will choose to cancel flood damage insurance. “This puts them in a very bad position,” he said.

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