The astronomic rise in mortgage rates and spike in home prices over the past year has pushed a key tenet of the American dream out of reach for millions of families. Now, there is another obstacle to homeownership: higher home insurance premiums. The average cost of home insurance for a $300,000 property in the U.S. surged 12% in 2023 to roughly $1,770 per year, according to a new report published by Insurify, an insurance comparison website headquartered in Massachusetts.
Home insurance in Oklahoma costs about $4,782 on average, 170% higher than what the typical American pays. Premiums rose 24% in the state last year; Oklahoma Insurance Commissioner Glen Mulready has blamed the increase on weather and the rising cost of building materials due to inflation. "The median home value in Oklahoma is nearly 50% lower than the national average, according to U.S. Census Bureau data," Insurify wrote in the report.
The increase was also influenced by severe weather, including storms, high winds, tornadoes and flooding in July. Kansas is also prone to wildfires. Georgia insurance rates hit $2,173 in 2023, a 17% spike from the previous year. By comparison, the median household income in the state rose just 2.3% last year, according to Labor Department data. Georgia experienced 12 natural disasters last year that cost the state about $38 billion in damages.