Homeowners insurance rates for Georgians grew by nearly 12% in the past year, a recent report shows, as inflation, more powerful storms such as Hurricane Helene and other factors helped send rates skyward.
The annual increase was slightly higher in Georgia than the national average, the report by LendingTree said. Since 2019, Georgia homeowners have seen their insurance rates jump nearly 36%, a few percentage points lower than the national average, the LendingTree report said.
In its State of Home Insurance report, LendingTree said Georgia homeowners pay an average $2,869 annually for home insurance, about $70 higher than the national average.
“It’s a pain that people are feeling everywhere in the country, including Georgia,” Rob Bhatt, insurance expert for LendingTree, said of growing rates.
The lowest average payment is Hawaii’s $632 — the only one to come in under four figures. On the opposite end of the spectrum, two states more than double the national average: Oklahoma ($6,133) and Nebraska ($5,912).
Why are rates rising?
Homeowners everywhere may have reason to be concerned by the fact that rates were relatively steady from 2019 to 2021, but increases have jumped each year since, the report noted. Every state saw a rate increase in 2024.
Two key drivers that have contributed to this nationwide increase have been inflation and an increase in “climate-related disasters,” such as hurricanes, tornadoes, wildfires and hailstorms, according to Bhatt.
Credit: Miguel Martinez-Jimenez
Credit: Miguel Martinez-Jimenez
Last fall, Hurricane Helene devastated large swathes of South Georgia and the Augusta area, and the storm delivered flooding rains and wind damage to parts of metro Atlanta.
The increase in natural disasters — and the ferocity of them — can be largely attributed to climate change, according to the United States Geological Survey.
The Atlantic hurricane season is also in full swing. Other states have seen flooding rains, including the recent deadly deluge in Texas.
As more natural disasters strike, insurance companies are receiving more claims and having to rebuild more homes, which pushes rates up.
“Insurance companies have to pay to rebuild more houses, and the cost of repairing or rebuilding each house is significantly higher than it’s been in the past,” Bhatt said.
After the last few years of increases, things may be stabilizing to where companies are earning enough to cover the expenses they pay out. Bhatt said he is “cautiously optimistic,” but things could go awry again if inflation surges or certain areas get hit by climate disasters.
Liz Coyle, executive director of consumer advocacy group Georgia Watch, says that while inflation and nature are certainly significant factors, they’re not solely to blame. The rise in premiums has also correlated with a significant rise in investment-based profits for insurance companies, reaching record levels, she said, citing a report from Risk Consulting & Expert Services.
“Insurance companies continue to earn and reap significant profits, and their profit margins are high,” Coyle said.
What can be done
While home insurance isn’t required by Georgia law, most mortgage lenders will require borrowers to have it, making the expense unavoidable for most. But lowering rates is a complex issue, Bhatt said.
Part of the problem is a lack of transparency. According to the Consumer Federation of America, Georgia was one of seven states that chose not to share data with the National Association of Insurance Commissioners and the Federal Insurance Office for their efforts to bridge this gap.
Recent legislation in Georgia intended to decrease how often customers sue providers instead of settling claims may also bring down insurance prices across the board, the industry says.
“We are hopeful the legislation will lead to rate moderation in the Peach State but we don’t expect to see impacts for at least 18 months because of the large volume of previously filed lawsuits working their way through the court system,” Mark Friedlander, spokesperson for the Insurance Information Institute, said in a statement.
A study committee also has been established by state lawmakers to scrutinize causes for rate increases.
“Inflation, the rising cost of labor and materials, and major storms like Hurricane Helene, which caused billions of dollars in damage across our state, all contribute to the rising cost of homeowners insurance,” Insurance Commissioner John F. King said in a statement. “We are in close conversation with our lawmakers and industry leaders on ways to lower costs for every Georgian. All options are on the table.”
Coyle encourages homeowners to push back against high premiums and increases, whether that’s by directly speaking with an agent or reaching out to King’s office to report concerns.
There are things individual homeowners can do to bring down their own rates as well.
Bhatt said buyers should shop for the lowest rate.
King’s office recommends getting at least three quotes for insurance.
Bundling coverage is another way to save a bit, as most insurance companies offer discounts for multiple policies, such as home and auto. Consumers should also inquire about discounts.
Increasing a deductible, which would increase the risk of out of pocket expenses in the event of a claim, should reduce monthly premiums.
King also encourages homeowners to read the fine print of contracts and not pick just based on the best monthly premium.
Finally, Bhatt said paying for small projects — such as repairing a broken window — rather than filing a claim can save consumers in the long run as multiple claims can increase premiums.
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