Nationally, insurance rates rose 11.3% last year as home insurance costs have been rising steadily as climate risks and natural disasters rise. Over the last 5 years they have risen 33.8%, but they vary greatly from state to state with Texas the highest at a 59.9% increase. Some places are simply no longer insurable.
In Minnesota, insurance rates have risen 39.1% over the last five years. Storms causing trees to fall and roofs to be damages have made a big impact. Some HOAs are struggling to deal with rising costs by raising the deductible, only to find that can make some buyers unable to get financing. Trees extending over houses can make those difficult to insure and therefore can impede securing financing.
When buying a home, yet another factor to consider is homeowner’s insurance, both cost and coverage.
- HOA insurance changes could lead to inability to buy or sell units
- Overhanging tree branches make home uninsurable
Looking ahead, as climate risks go up expect the cost of insurance to also increase. The map below from realtor.com shows how much rates can vary from state to state, rising from a low of 5.8% to a high of 59.9% over the last five years. Click the map below to find the same interactive map at realtor.com that tells how much each state has increased.
States with the highest increases…
- Texas – 59.9%
- Colorado – 57.9%
- Arizona – 52.9%
- Utah – 51.9%
- Nebraska – 48.6%
- Illinois – 45.8%
- Oregon – 44.8%
- California – 43.7%
- Florida – 43.2%
- Oklahoma – 42.2%
Sharlene Hensrud, RE/MAX Results – shensrud@homesmsp.com
