Homeowners Insurance Crisis Spreads Beyond Florida and California
Louisiana, North Carolina, Oklahoma, and Colorado are among states where homeowners insurance rates rose by more than 25% over the past 18 months.
The homeowners insurance market pressures that have plagued Florida and California are spreading. Louisiana, North Carolina, Oklahoma, and Colorado are among states where homeowners insurance rates rose by more than 25% over the past 18 months, according to an analysis of state filings compiled by the Insurance Information Institute.
Louisiana premiums averaged $2,800 at the start of 2026, up 31% from the same point in 2024. The state has experienced four of its 10 costliest hurricanes on record since 2020. Louisiana Citizens Property Insurance Corporation, the insurer of last resort, reported 113,000 policies in force, more than double the level of five years ago.
Oklahoma premiums averaged $3,180 in early 2026, a 28% increase over 18 months. The state leads the nation in severe convective storm losses, and reinsurance pricing tied to that exposure has translated into primary-market hikes. Oklahoma Insurance Commissioner Glen Mulready approved nine rate increases above 15% during 2025.
"The geography of insurance affordability is expanding," said Sean Kevelighan, CEO of the Insurance Information Institute. Kevelighan said severe-weather frequency, replacement-cost inflation, and reinsurance costs have together pushed the industry's combined ratio for homeowners above 110% in the most affected states.
North Carolina implemented a 15% average rate hike in March, with some coastal counties seeing approved increases as high as 39% for dwelling-fire policies. The State Insurance Department settled the rate filing with the North Carolina Rate Bureau in January, short of the 42% average the trade group initially sought.
Colorado homeowners faced an average 26% rate increase over 18 months, driven by the state's growing wildfire exposure profile. State Farm, the largest insurer in Colorado, submitted a new filing in February seeking an additional 17% average increase, with higher adjustments for homes in defined wildfire-risk zones. The state Insurance Division is reviewing the request.
Some carriers have tightened underwriting beyond pricing. Allstate stopped writing new policies in parts of northern California in 2024 and expanded a similar approach to Colorado mountain counties in 2025. American Family Mutual restricted new business in Oklahoma tornado-alley counties. Nationwide paused new homeowners writings in 12 Louisiana parishes.
Impacts on home sales are becoming visible. NAR reported that insurance-related contingencies triggered renegotiation or contract cancellation in 9% of transactions nationally in Q1 2026, up from 4% in 2023. Janneke Ratcliffe, vice president of housing finance policy at the Urban Institute, said federal flood-insurance reform and expanded mitigation grants would be needed to address the issue structurally.
