Brief
Home insurance premiums now outpace property taxes in most U.S. counties
An analysis shows average homeowner premiums have risen 45% in a decade, making insurance costs higher than property taxes in 75% of counties when auto coverage is added.
By Felo News Desk · Published
Bloomberg Intelligence reports that average home‑owner insurance premiums now exceed the average property‑tax bill in two‑thirds of U.S. counties, according to a analysis published Monday.
What happened
The study shows county‑level homeowner policies have risen 45% over the past ten years after adjusting for inflation. Some states see steeper climbs, with Nebraska experiencing a 79% increase. When auto insurance linked to extreme weather is added, the combined cost tops property taxes in 75% of counties nationwide.
What the report adds
Regional patterns emerge: hail and winter storms drive up premiums in the Midwest and Mountain West, especially Colorado, Utah and Minnesota. In the Southeast, where property taxes are low, insurance can be 2.5 to 4 times the tax levy. Northeastern and Western states, along with large metros, have higher tax bills, so the insurance premium represents a smaller share of the total tax burden.
What was said
Andrew John Stevenson of Bloomberg Intelligence noted that homeowners are paying a county‑average of 14% more for insurance than for property tax, rising to 30% when auto insurance is included. He warned that local governments face “a very daunting proposal” as disaster‑related spending climbs, and that funds would be better directed to improving local infrastructure rather than replacing it.
How it came about
The analysis draws on data from the U.S. Census, state insurance regulators and federal weather and transportation agencies. It highlights a broader affordability crunch that could shape voter sentiment ahead of the midterm elections next month. The shift in disaster‑recovery financing—where the federal share of funding has fallen from 90% to roughly 50% over the past two decades—adds pressure on local budgets, as illustrated by recent federal‑local spending splits after Hurricane Harvey (Texas) and the January 2025 Los Angeles fires (California).
Key facts
- Average homeowner insurance premiums have risen 45% in a decade after inflation adjustment. (latimes.com)
- In two‑thirds of U.S. counties, insurance premiums now exceed property‑tax bills. (latimes.com)
- When auto insurance linked to extreme weather is added, combined premiums outpace property taxes in 75% of counties. (latimes.com)
- Nebraska saw the largest state increase at 79% over the same period. (latimes.com)
- Federal disaster‑recovery funding has dropped from 90% to about 50% of total spending. (latimes.com)
Sources
- [1] latimes.com — originally reported as “Home insurance now costs more than property taxes in most counties”
