The New Affordability Fight in the Midterms: Home Insurance Prices - …

Home Insurance Premiums Rise Sharply in Several States, Influencing Midterm Campaigns

Extreme weather events have contributed to higher homeowners insurance premiums across multiple states, affecting voter concerns in races from California to Tornado Alley. In Kansas City, Kansas, a severe storm damaged Gilbert Kirk’s residence, leaving the structure uninhabitable. Similar patterns of increased claims from storms, hurricanes, and wildfires have coincided with premium growth in states including Florida, North Carolina, and Kansas.

In Florida, candidates for governor addressed the state’s elevated home insurance rates during the campaign following Hurricane Isaias. In North Carolina, rising construction costs and flood-related claims have increased premiums, prompting debate over a proposed constitutional amendment to limit property tax growth. In Kansas, hail and wind damage have placed the state among the higher-cost markets nationally, turning the insurance commissioner contest into a competitive race.

Homeowners insurance premiums nationwide have increased 46 percent since 2021. A recent survey indicated that 58 percent of respondents viewed rising insurance costs as a factor that could influence their vote. Separate polling in Arizona, Iowa, Kansas, Nebraska, and North Carolina showed majorities favoring greater regulatory action on premiums and insurer accountability. Nearly one-third of North Carolina respondents and more than one-quarter of Kansas respondents reported delaying major purchases or decisions due to higher insurance expenses.

Kansas insurance claim payouts reached $879 million in the most recent reported period, nearly double the amount from two years earlier. For a $300,000 home with a $1,000 deductible, the average annual premium stands at $5,289, which exceeds the national average by 84 percent. Six of the ten states with the highest average premiums are located in the central United States.

Sarah Lopez-Lewis and Brent Lewis, residents of the Wichita area, saw their monthly mortgage payment rise from $3,000 to $4,000 after their insurer adjusted coverage costs. The couple, who had left employment to start a nonprofit, subsequently sold their home and relocated to a rental townhouse in a Kansas City suburb. Brent Lewis noted that changing weather patterns and insurance expenses have made household budgeting more difficult. The couple identified the upcoming insurance commissioner election as one area where policy changes could affect future rates.

Republican candidate Daniel Hawkins, speaker of the Kansas House, has campaigned on holding insurers accountable while drawing on his background as an employee benefits consultant. At a Wichita fundraiser, he stated that he would act against companies that create difficulties for policyholders. His opponent, Democratic state Senator Dinah Sykes, has emphasized consumer protection and her lack of prior employment ties to the insurance sector. Sykes, who switched parties in 2018, has described the office as needing stronger oversight to prevent industry influence over regulatory decisions. Hawkins has countered by highlighting his 32 years of industry-related experience and legislative record.

Three states are electing insurance commissioners in November. In California, voters will choose between Democratic state Senator Ben Allen and former San Francisco supervisor Jane Kim; Kim has proposed a state-run disaster insurance program modeled on New Zealand’s system. In Oklahoma, insurance executive Bob Sullivan won the Republican primary on a platform focused on affordability, and voters there are also considering a constitutional amendment to adjust property assessment caps. In Florida, Republican nominee Byron Donalds and Democratic nominee David Jolly have discussed insurance costs alongside a ballot measure that would expand homestead property tax exemptions. Supporters of the measure cite relief for homeowners facing higher premiums, while opponents note potential reductions in local government revenue for schools and services.

Economist Carolyn Kousky has observed that affordability pressures can lead to calls for direct price controls, though such measures carry trade-offs for market stability. Industry data indicate that roughly one in seven homeowners nationally have chosen to forgo coverage in recent years to manage other expenses.

In Wyandotte County, Kansas, Gilbert Kirk, 71, was inside his home during an August storm that caused structural damage and trapped him briefly under debris. The house remains unoccupied, and Kirk has listed obtaining coverage among steps required before any return. He described the sudden loss of habitability as leaving him without immediate options.

Additional factors cited by insurers and regulators in premium calculations include reinsurance costs passed through to policyholders, increased litigation over claim settlements in certain states, and elevated material and labor expenses for repairs. These elements have operated alongside weather-related claims in multiple markets.

The Kansas race features contrasting approaches: Hawkins stresses industry knowledge for immediate regulatory engagement, while Sykes focuses on data-driven consumer safeguards independent of prior industry employment. Both candidates have addressed the same set of premium increases reported across the state.