Homeowners' insurance costs surged in 2023, with Louisiana residents facing higher rates. Factors like regulations and credit scores impact insurance premiums.
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The average annual homeowners’ insurance premium in 2023 was 10.8% higher than the previous year and 40.8% higher than in 2018. Homeowners in Louisiana and other central states face higher costs. Regulatory factors and credit scores impact insurance rates.
Increasing Homeowners’ Insurance Costs
According to Freddie Mac, the average annual premium for homeowners insurance in 2023 was $1,522, marking a 10.8% increase from 2022 and a significant 40.8% rise from 2018.
Regional Disparities in Insurance Costs
Homeowners in states like Louisiana pay more than the national average due to various factors. California’s strict regulations on insurance companies help keep rates lower despite disaster risks.
Factors Influencing Insurance Costs
Climate change plays a role in increasing insurance costs as regions experience more frequent and severe natural disasters. States also consider homeowners’ credit scores, with higher scores correlating to lower insurance risks.
Credit Scores and Insurance Rates
Experian’s data shows that states with lower average credit scores, like those in the South, tend to have higher insurance rates. For instance, Mississippi’s average credit score of 680 contributes to higher insurance costs.
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Tasha Ortiz is a seasoned blog writer specializing in technical stock analysis. With a keen eye for market trends and a passion for decoding complex financial data, she delivers insightful and actionable content to help readers navigate the world of stocks and investments with confidence.
