U.S. Homeowner Premiums Jump 27%, Raising $300,000 Underinsurance Gaps
Updated
Updated · The Washington Post · Nov 15
U.S. Homeowner Premiums Jump 27%, Raising $300,000 Underinsurance Gaps
3 articles · Updated · The Washington Post · Nov 15
Summary
Average U.S. homeowner insurance premiums rose 27% from 2019 to 2024, yet some policyholders still face major protection shortfalls when claims hit.
Rising rebuilding, construction and materials costs have outpaced some coverage limits, while higher deductibles can leave owners paying thousands before insurance starts; one fire claim exposed a $300,000 gap.
Policies can also hide costly exposures: a 2% wind and hail deductible on a $715,000 dwelling limit means $14,300 out of pocket, and standard coverage often excludes flood damage or code-upgrade costs.
Shopping across insurers can cut premiums without sacrificing protection—one homeowner's annual cost fell from $2,751 to $1,728 while improving coverage—whereas trimming dwelling coverage to save money can backfire.