The cost of insuring U.S. homes has surged to a record high, driven by climate-related disasters and shifting market dynamics, Bloomberg writes.
Average annual property insurance payments for mortgaged single-family homes climbed nearly 5% in the first half of 2025 to about $2,370, according to Intercontinental Exchange’s latest Mortgage Monitor. California, North Carolina and South Carolina saw sharp hikes following wildfires and flooding, with Los Angeles homeowners facing a 9% jump since January. While Californians still pay some of the nation’s lowest premiums, homeowners in hurricane- and storm-prone states across the South and Midwest continue to pay the most. Florida remains the most expensive market, though recent legislation has lured back private carriers, reducing reliance on state-backed plans.
In Miami, the share of homeowners with state coverage has fallen from nearly half to just over a quarter in the past 18 months—a sign of how policy and climate pressures are reshaping the insurance landscape.
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