At the Alexander Insurance Agency, we understand that owning a home is already one of the biggest financial commitments you’ll make. And now, more than ever, homeowners are feeling added pressure as insurance premiums continue to rise sharply across the country.

Recent analysis shows that home insurance rates have jumped a staggering 40.4% nationwide over the past six years. While increases were modest between 2019 and 2021—peaking at 3% in 2021—rates have surged dramatically since then, with 2022, 2023, and 2024 seeing hikes of 5.4%, 11.0%, and 11.4%, respectively.

Some states have seen even sharper increases. Colorado leads the pack with a 76.6% cumulative increase since 2019, followed closely by Nebraska (72.3%) and Utah (70.6%). On the other end of the spectrum, states like Vermont (12.2%), Alaska (12.9%), and Maine (17.9%) saw the slowest growth in premiums.

Here in Missouri, homeowners aren’t immune. In 2024 alone, the state experienced a 16.4% increase in home insurance premiums—one of the top 10 highest hikes in the nation.

What’s Driving These Increases?

According to insurance experts, the main culprits are rising claim costs and the growing number of natural disasters. As materials and labor costs climb, rebuilding homes after events like wildfires, tornadoes, hailstorms, and floods becomes more expensive. Insurance providers must raise premiums to keep up with these higher expenses, especially in states hit hardest by repeated billion-dollar disasters.

Here in the Midwest, we’ve seen our fair share of extreme weather. Just last year, a powerful derecho storm caused widespread roof damage, power outages, and even shattered windows across central Missouri. For many homeowners, having the right policy in place meant the difference between a quick recovery and a serious financial burden.

More Than a Mess: How Storms Leave Emotional and Financial Wreckage

In the wake of a major storm, the emotional and financial toll can feel overwhelming. Beyond the obvious physical damage, there’s a mental weight that settles in as families face the uncertainty of what comes next. Sorting through debris, filing claims, finding temporary housing—all while wondering how much repairs will cost or whether insurance will cover it—can create a perfect storm of stress. 

For those without adequate coverage, that stress only intensifies, sometimes forcing difficult choices about what repairs to prioritize or how to cover unexpected expenses. And the costs add up fast. A single hailstorm can rack up thousands of dollars in roof and siding repairs, while downed trees and water intrusion may lead to even more extensive—and expensive—damage inside. 

With contractor shortages and supply delays becoming more common, these costs can climb even higher than expected. That’s why having the right policy isn’t just a recommendation—it’s a financial safeguard. 

Storms, Soakers, and Surprise Sparks: The Real Costs of Going Uninsured

Home insurance isn’t just about covering total losses, either. It’s what helps when a tree crashes through your living room during a storm, or when a frozen pipe bursts during a winter freeze, flooding your kitchen while you’re on vacation. 

One of our clients in Jefferson City experienced severe water damage after a second-floor washing machine malfunctioned overnight. Thanks to comprehensive coverage and quick claims assistance, they were able to repair their home and recover thousands of dollars in damaged furniture and flooring.

Even non-weather events can cause costly issues. Consider a house fire sparked by an overloaded outlet, or theft during a family vacation, both are covered under most standard policies, but only if they’re up to date.

How Much Are Homeowners Paying?

On average, homeowners across the U.S. now pay $2,801 annually for coverage. But some states far exceed that:

• Oklahoma: $6,133
• Nebraska: $5,912
• Kansas: $5,412

Meanwhile, Hawaii enjoys the lowest average rate at just $632 per year, with Vermont and California also among the more affordable states.

Unfortunately, these higher costs are starting to strain household budgets. For new buyers, rising premiums can limit borrowing power. And for current homeowners, higher insurance expenses may reduce flexibility for other essentials like maintenance, savings, or childcare.

It’s no surprise that, according to LendingTree, over 13% of owner-occupied homes in the U.S.—roughly 11.3 million—are uninsured. That’s a concerning trend in a time when coverage is more important than ever.

What Can Homeowners Do?

At Alexander Insurance Agency, we recommend a proactive approach to keep your costs under control:

• Compare policies: Rates vary between carriers, so shopping around can make a big difference.
• Adjust your deductible: A higher deductible may reduce your premium—just be sure it’s affordable in case of a claim.
• Avoid filing small claims: Paying out of pocket for minor repairs can help avoid premium hikes or potential cancellation.

One effective way to manage your home insurance costs is by bundling your coverage with other types of policies, such as auto, life, or umbrella insurance. Many insurance carriers offer significant discounts when you combine multiple policies, making it a practical option for reducing your overall premium. We’ve worked with numerous Missouri families who’ve saved hundreds of dollars each year simply by consolidating their coverage under one provider. 

Hidden Gaps, Big Risks: What Your Policy Might Be Missing

Another strategy we recommend is investing in preventive maintenance around your home. Insurance companies often reward homeowners who take proactive steps to minimize risk. Upgrades like a modern security system, updated electrical or plumbing systems, trimmed trees near your roofline, or even a newer roof can not only help prevent damage but may also make you eligible for policy discounts. 

Regular policy checkups are key. With changing home values and risk factors, annual reviews help ensure your coverage still fits. We’ve helped countless Missouri families uncover gaps in their coverage—whether it’s outdated dwelling limits, missing liability protection, or no added coverage for high-value personal items like jewelry or electronics.

As always, our team is here to help Missouri families find coverage that fits their needs and budget. If you’re unsure whether your current policy is still the best option, let us review it for you. We’ll make sure you’re not overpaying—and not under-protected.