On average, the price of homeowners insurance rose by more than a third between 2020 and 2023, and by more than half in high-risk areas, according to research by Benjamin Keys at the Wharton School.
“Insurance is an annual contract, and oftentimes home buyers would think that whatever they paid last year is what they’ll pay next year,” Keys said. “What we’ve seen over these last few years is that’s simply not the case.”
Models aren’t perfect at predicting where those costs will go, Keys said, but even a rough idea will help home buyers make better decisions about what — and where — they can afford.
