Arizona Leads the Nation with 62% Surge in Home Insurance Rates over 5 Years

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Across the U.S., home insurance rates have risen 37.8% since 2019. A significant portion of this increase is likely due to rising home prices. As home prices spike, so does the cost to insure them. Inflation and its effect on building materials also play a role. Although inflation has started to cool, the cost of building materials remains higher than in 2019, meaning the cost to repair a home is higher than before.

Arizona has experienced a dramatic 62.1% increase in home insurance rates over the past five years, the highest rise of any state during this period.

As climate change worsens, more homes are at risk of damage from extreme weather events. To combat these rising claims, many insurers are raising their premiums (particularly in more at-risk areas).

According to LendingTree home insurance expert and licensed insurance agent Rob Bhatt, raising costs is likely inevitable for insurance companies.

“Insurance companies have to repair more homes, and it’s more expensive to rebuild each one than it might have been just five years ago,” he says. “When their costs of paying claims go up, they turn around and raise our rates. This is affecting prices for just about everyone, including people who haven’t been directly impacted by a natural disaster, or at least not yet.”

By state, Arizona had the biggest cumulative spike in home insurance rates from 2019 through March 2024, jumping 62.1%. Climate change certainly plays a role. According to the National Oceanic and Atmospheric Administration (NOAA), Arizona has been affected by eight extreme weather events with losses exceeding $1 billion each since 2019.

Cumulatively, Arizona was followed by Nebraska (59.9%) and Illinois (56.9%). Since 2019, Nebraska has been affected by 20 extreme weather events with losses exceeding $1 billion each, while Illinois has been affected by 34.

States with the biggest cumulative increases in home insurance rates, 2019-2024

Rank	State	Cumulative increases in home insurance rates, 2019-2024
1	Arizona	62.1%
2	Nebraska	59.9%
3	Illinois	56.9%

Source: LendingTree analysis of RateWatch from S&P Global data. Note: This covers 2019 through March 2024.

Conversely, Alaska had the smallest cumulative spike in home insurance rates over this period, at 6.8%.

Unlike the top-ranking states, those that saw the smallest increases were less likely to be affected by billion-dollar disasters — Alaska has seen just two since 2019. Alaska was followed by Vermont (7.4%) and West Virginia (9.9%), which have seen four and eight billion-dollar disasters, respectively, since 2019.

Full rankings

States with the biggest/smallest cumulative increases in home insurance rates, 2019-2024