Homeowners saw double-digit premium increases in 2023 and 2024, according to research from insurance tech company Matic, reflecting higher rebuilding costs and increased weather-related losses. While those increases began slowing to around 8.5 percent by December 2025, the severity of extreme weather events continues to impact insurance costs. Here are some tips for navigating these changes and keeping your property protected.
Why are premiums rising?
Interest rates, inflation, and costs to rebuild after a disaster all affect premiums, but climate-related risks also play a big role in home insurance pricing.
“We don’t see a lot of wildfires, floods, or hurricanes in our area, but most insurance carriers [that] cover those states that get hit with catastrophic conditions,” says Toni Heidel, an insurance agent at AAA based in Florence, Kentucky. “That, in turn, can affect future rates in our area [as insurers account for] overall increases in claims.”
In other words, severe weather-related insurance payouts often contribute to broader premium adjustments, particularly in higher-risk areas. To balance risk and maintain long-term coverage availability, insurance companies may raise deductibles or evaluate property-specific factors.
For instance, roof age is a major consideration, says Heidel. Some companies limit new policies for homes with roofs older than 10 years, while others may restrict coverage once roofs reach 20 to 25 years due to the increased risk of leaks, storm damage, and claims, she explains.
Tree overhang can also impact homeowners' ability to obtain coverage, adds Heidel. Insurance companies are increasingly using aerial property imagery as one of several tools to assess a home’s risk before offering coverage, she says.
How to protect your home from extreme weather
While insurance rates may continue to fluctuate, you can take steps to minimize weather-related issues.
Check your zone
When you purchased a property 25 years ago, it may not have been in a flood zone. But as extreme weather has increased, flood maps and zoning have changed, which could result in unexpected costs—such as needing a flood insurance policy. (To find out your home’s flood risk, check the FEMA flood map.)
Understand your policy
Know what’s included—and what’s not. Pay close attention to exclusions and deductibles for specific risks, and monitor any changes from year to year.
Explore alternative options as needed
Your standard policy may exclude certain risks, so look into supplemental coverage. Even if you don’t live in a flood-prone area, a neighborhood sewer backup could damage your home—and your homeowner’s insurance policy may not include coverage for that type of loss. Flood insurance would. State-run plans also may bridge coverage gaps.
Maintain your property
Prioritize the most meaningful home improvements. “A 2026 roof versus a 2009 roof can be a premium difference of $600 a year,” Heidel explains. Even if you don’t replace your roof, routine maintenance—such as trimming trees and cleaning gutters—can help reduce your premiums over time.
Check for discounts
Ask your insurance agent about discounts for preventive measures, such as wildfire barriers, reinforced roofs, or storm shutters, especially if you live in a high-risk zone. Also, bundling home and auto insurance with the same carrier may provide a discount.
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Tornadoes, wildfires, heavy snowstorms, and spring flooding are likely to continue as part of our new normal. While homeowners don’t have direct control over insurance pricing, “shopping insurance rates and taking proactive steps to reduce risk are essential in attempting to keep your rates down,” Heidel says.
Taking these steps can protect your home and help you manage the impact of extreme weather on both your property and your wallet.