If you’ve recently opened your renewal notice and thought, “Why is my homeowners insurance more expensive this year?” — you’re not alone. Across Missouri and beyond, homeowners are seeing their insurance rates climb. And while it can feel frustrating, we want you to know: we’re here to help, not just sell.
At our agency, we’re not about chasing dollars. We’re about protecting what matters most — your home, your peace of mind, and your budget. Let’s take a closer look at the main reasons behind the recent increase in homeowners insurance premiums and how you can still find affordable, reliable coverage.
Yes, Rates Have Gone Up in 2025 — Here’s Why
The average cost of a homeowners insurance policy in the U.S. is now around $2,110 per year for $300,000 in dwelling coverage — a 21% jump in just the last couple of years. That’s roughly an extra $244 annually for many policyholders.
While individual situations (like claims history or added coverage) can impact your rate, the reality is that most of these increases are driven by factors far outside your control. Let’s explore what’s going on.
5 Big Reasons Your Home Insurance Premium May Be Higher This Year
1. More Severe Weather, More Damage
Natural disasters are happening more often — and hitting harder. From hurricanes in the Southeast to wildfires out West and harsh winters here in the Midwest, weather-related claims are on the rise. In 2024 alone, the U.S. saw at least 20 separate billion-dollar weather disasters.
As these events grow in number and intensity, insurance companies have to prepare for bigger payouts — and unfortunately, that risk gets reflected in your premiums, even if you haven’t filed a claim.
2. Insurance Companies Are Pulling Out of High-Risk Areas
Some national insurance carriers are stepping away from high-risk areas altogether. Fewer options mean less competition — and that can drive up rates for everyone. Even if you don’t live on a coast, these shifts impact pricing across the country, including right here in Missouri.
3. Skilled Labor Shortages
The construction industry is short on workers. Fewer contractors mean longer rebuild times and higher repair costs — which directly affects how much it would cost to restore your home after a covered loss. That risk gets factored into your premiums.
4. Higher Costs for Building Materials
Even though inflation has cooled, construction materials remain expensive. Items like lumber, asphalt shingles, and roofing supplies still cost significantly more than they did a few years ago. Rebuilding a home now comes with a bigger price tag — and your insurance policy has to be able to cover it.
5. Your Claims History
If you’ve recently filed a claim, your insurer may see you as a higher risk, even if the incident wasn’t your fault. One claim alone can increase your premium by 7% to 10%, depending on the type and severity of the loss.
Let’s say you’re a homeowner in Columbia, Missouri, and a nasty hailstorm rolls through in the spring of 2024. Your roof takes a beating—shingles are damaged, and water begins to seep into the attic. You do the right thing and file a claim with your homeowners’ insurance company to cover the repairs, which total about $9,000.
The damage wasn’t your fault—it was Mother Nature. Unfortunately, even a single weather-related claim can signal to your insurer that your property may be at higher risk for future losses. As a result, when your policy renews in 2025, you notice your premium has jumped by about 8%.
That increase wasn’t based on anything you did wrong—it’s just how most insurers calculate risk. This is exactly why having a trusted, local independent insurance agent matters. At our Missouri agency, we’d step in to help you compare new options across multiple carriers to see if we can find you a more competitive rate, possibly with a company that’s more understanding about weather-related claims.
Our goal isn’t to sell you something you don’t need—it’s to help protect what matters most to you while keeping your premiums reasonable.
Other Reasons Your Premium Might’ve Gone Up
Aside from the major national trends, some other things can affect your personal rate, including:
- Policy changes – Adding coverage or increasing your limits can raise your premium.
- Lapsed discounts – You might’ve lost a bundling or loyalty discount without realizing it.
- Home upgrades or additions – Increasing your square footage or adding a deck, pool, or new wiring can change your risk profile.
- Credit or insurance score shifts – Insurers often use credit-based scoring to help calculate rates.
- Increased liability risk – Trampolines, certain dog breeds, or pools can increase your liability exposure.
What You Can Do to Lower Your Home Insurance Costs
We believe in solutions, not scare tactics. If your rate has increased, here are a few ways to potentially bring it back down:
Increase Your Deductible
If you’re financially able to cover a higher out-of-pocket amount in the event of a claim, raising your deductible can lower your monthly premium.
Bundle Your Policies
Many insurers offer solid discounts if you bundle your home and auto policies together. Let us help you explore your options.
Ask About Discounts
There are more savings opportunities than most people realize. From claims-free discounts to loyalty perks, military savings, and more — it never hurts to ask. We’ll help make sure you’re getting everything you qualify for.
Work with a Local, Independent Agent (That’s Us)
Unlike captive agents who work for just one insurance company, we work for you. We shop and compare policies from multiple top-rated carriers to find the right protection at the best value. We’ll also be here if you need to file a claim, ask questions, or make changes.
Let’s Talk About Your Coverage
You’ve got enough on your plate — your homeowners’ insurance shouldn’t add to the chaos. Whether you’re seeing unexpected rate hikes or just want a second opinion, we’ll make things easier to understand and tailored to your family’s needs.
From playrooms to backyards, let’s make sure everything you’ve built is well protected here at the Alexander Agency of St. Charles.