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Homeowners insurance rates in Virginia still remain below the national average but have been significantly affected by the high market volatility that the industry is experiencing. There has been a surge in the cost of premiums in Virginia rising 2% in 2024, but an 18% increase from five years ago. The average rate for homeowners insurance today is $1705 annually. Rising inflation, severe weather, and increased catastrophic losses are major drivers of the cost spikes. These are a few of the many trends that will likely continue as carriers adapt.
Virginia homeowners insurance trends that carry on from 2024
Key home insurance trends from 2024 that remain pertinent in 2025 involve the growing volume of claims prompting numerous insurers to adjust premiums to offset loss expenses and the heightened costs of providing homeowner insurance.
Here are some key trends to watch out for:
1. Rate shopping
Rates vary from one carrier to another. Insurers calculate premiums based on factors such as property location, deductibles, claims history, and home safety features. Independent insurance agents can compare coverage and rate options from many different companies. As the premium costs escalate and carriers impose more restrictions on new business and renewals, homeowners have been shopping around to find the most affordable rates. This trend will continue in 2025 as carriers tighten the requirements for new insurance.
2. Increased premiums and stricter underwriting
Premium increases hit a record high in 2024 due to noneconomic inflation. This has been aggravated by the growing number of catastrophes from storms, floods, and wildfires as more people move into disaster-prone areas and increasing costs of home repairs and reconstruction. With increased claims, many insurers have struggled to keep up with the rate of claims. Many carriers have been forced to revise their premiums to cover future losses. Insurance is regulated to ensure carriers fulfill their promises to consumers, so companies seeking to adjust premiums or change coverage terms must request approval from the state Bureau of Insurance.
With Virginia's susceptibility to costly weather events, including flooding, tornadoes, hurricanes, droughts, and wildfires, Virginia insurance companies are charging more for coverage and tightening home insurance qualifications. Carriers are requiring that homeowners perform maintenance of their houses and limiting coverages in high-risk locations.
Tips to get the best rates in Virginia
Despite the rising cost of home insurance, there are strategies you can use to qualify and save money. Many factors affect Virginia homeowners insurance rates, but here are a few tips to help you secure the best deals.
- Maintain your home
- Annually have your home’s roof inspected and replace your home's roof when necessary
- Install safety equipment (deadbolt locks, smoke detectors, and security systems)
- Upgrade outdated appliances (plumbing and electrical)
- Increase your deductible
- Improve your credit
- Bundle your coverages to receive discounts
As the homeowners' insurance landscape changes, trends such as higher premiums and stricter qualifications will define insurance underwriting in 2025 and beyond. Whether you're shopping for insurance for a new home or want to renew your existing policy, we hope you feel more prepared for what the market holds this coming year.
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THE NORTHERN NECK INSURANCE INTEGRITY PROMISE — We pledge to provide straight talk and good counsel from our NNINS Virginia insurance experts through our blog. While we hope you find this to be a helpful source of information, it does not replace the guidance of a licensed insurance professional, nor does it modify the terms of your Northern Neck Insurance policy in any way. All insurance products are governed by the terms in the applicable insurance policy.
