Homeowners Insurance

Homeowners Insurance Rate Changes First Half of 2017

In this article we review all pending and approved rate filings submitted by homeowners insurance companies in the past six months to identify the impact for homeowners.

We reviewed all pending and approved rate filings submitted by homeowners insurance companies in the past six months to identify the impact for homeowners. While home insurance premiums have not increased as much as auto insurance has in the past few years, costs have become steadily more expensive. We break down filings by company and state in this article.

Homesite Insurance Company: 11.9% Rate Increase in Virginia

On June 26th, Homesite Insurance Company was approved for an 11.9% rate increase on its homeowners insurance policies in the state of Virginia. In total, 15,139 policyholders in the state will be affected. Rates are expected to increase an average of $105 per policy, up from the current $925 per policy cost now.

USAA: 10% Rate Increase in New York

On April 17th, USAA was approved by state regulators to raise its rates by 10% on 7,878 policy holders in the state of New York. On average, affected policies are expected to increase $141. The current average cost of a policy in New York is $1,408 for this group of homeowners.

Most Rate Changes by Company

The most active companies of the past month have been Allstate, ACUITY, and USAA. USAA had the highest rate increases of the three, requesting a 4.6% rate increase on average nationally. The Hartford had four filings that averaged a rate increase of 13.6%. In the table below we summarize the average increase for all insurers who filed rate changes since January 1st to June 30th of this year:

CompanyNumber of Rate ChangesAverage Percent Change
1Allstate363.3%
2Acuity211.1%
3USAA164.6%
4Homesite Insurance Company81.9%
5Alliance Insurance Company43.4%

Allstate's largest single increase in terms of rate change was a 9.9% increase in Montana, though only a few thousand policy holders will be affected. Seven of Acuity's filings were actually for a rate decrease. The two largest of such were a 5% decrease for homeowners in both Indiana and Maine. Conversely, Acuity also asked for three separate 9.9% increases in Montana, Colorado and South Dakota.

Most Rate Changes by State

Insurance companies were most active in Texas in the past six months, submitting 18 filings in total for an average rate increase of 1.2%. Home insurers in North Dakota and Montana were also active, submitting 12 and 11 filings respectively. Montana's increases were significantly higher however: 7.6% against North Dakota's 2.0%. In total, 40 states submitted filings in the past six months. The average home insurance cost in the country is currently $1,083.

RankStateTotal FilingsAverage Rate Change
1Texas181%
2North Dakota122%
3Montana118%
4Colorado106%
5Illinois7-1%
6Kentucky71%
7Virginia76%
8Missouri62%
9Georgia52%
10Nebraska54%
11Pennsylvania50%
12South Carolina51%
13Tennessee50%
14Arkansas46%
15Arizona4-5%
16California45%
17Kansas31%
18Maryland33%
19Michigan31%
20Minnesota31%
21New Hampshire33%
22New Jersey33%
23Nevada31%
24New York3-1%
25Ohio30%
26Vermont32%
27Wisconsin30%
28Iowa2-2%
29Indiana2-3%
30Louisiana2-3%
31Maine2-3%
32Mississippi2-1%
33Oklahoma24%
34Rhode Island210%
35Utah22%
36Connecticut12%
37Idaho13%
38New Mexico15%
39Oregon18%
40South Dakota110%

Montana's biggest rate increase was 30% from Sentinel Insurance Company which was approved on March 18th. All other Montana increases were below the 10% threshold however. Rhode Island had the second highest rate increase, 15% from USAA, though that one is still pending as of July 20th.

Craig Casazza

Craig is a former research analyst at ValuePenguin covering property and casualty insurance, including auto, homeowners, renters and motorcycle insurance.