The cost of property insurance in the US rose to an all time-high in the first half of the year, as homeowners f
aced sharp price increases in states recently affected by climate-related disasters, such as California.
The average insurance payment for a mortgaged single-family h
ome in the US rose 4.9% in the first half of 2025 — resulting in an average annual payment of almost $2,370, according to Intercontinental Exchange Inc.’s Mortgage Monitor report released Monday.
North Carolina and South Carolina — which were hit by flooding last
year from Hurricane Helene — both experienced sharp increases, as did California, which is still recovering from January wildfires.
Climate change is increasing the frequency of disasters such as wildfires and hurricanes across the US, forcing carr
iers to increase premiums or walk away from the most disaster-prone markets.
In Los Angeles, where sprawling wildfires obliterated entire neighborhoods, homeowners’ insurance bills ros
e by 9% in the first six months of this year, or almost 20% from mid-2024.
Californians still pay some of the lowest US premiums for their
home insurance, while homeowners in states prone to hurricane, storm and hail damage across the South and the Midwest pay the most.
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In Florida, legislation aimed at spurring the return of private insurers has led to a sharp reduction in the number of homeowners on state-backed plans, according to the report.
In Miami, the most expensive US property insurance market, the share of single-family mortgage holders
with state-backed insurance has fallen to 27% from 46% over the past 18 months.
Citron’s client, Stainton Williams, sued Citizens in July, after the state-created Citizens moved to send claims disputes to the Florida Division of Administrative
Hearings, also known as DOAH. Having a state agency review cla
ims disputes deprives insureds of their right to a neutral court and does not require administrative law judges to disclose conflicts of interest, the suit alleged.
Citizens in 2022, during the worst of the claims litigation escalation in Florida, acted to introduce endorsements in po
licies that allowed the insurer or the insured to have claims disputes heard at DOAH. While Citizens officials have said the move has sped up resolution time a
nd has reduced legal fees, a few policyholders took issue.
“This is not merely a dispute over insurance,” the Williams complaint reads. “It is a direct challenge to a calculated and state-backed apparatus that deprives Florida homeowners of their most basic constitutional rights: access to the courts, neutral adjudication and meaningful due process.”