Georgia homeowners are continuing to feel it in their wallets as insurance costs climb, driven by stronger storms and higher rebuilding costs.
According to a recent LendingTree analysis, home insurance costs in Georgia increased by an average of 7.3% in 2025, slightly more than the national average.
Home insurance rates in Georgia and the U.S. have been climbing for years, and a 2025 study by the U.S. Department of the Treasury’s Federal Insurance Office found climate-related disasters are straining insurers.
The increase in natural disasters — and the ferocity of them — can be largely attributed to climate change, according to the United States Geological Survey.
“It’s a combination of factors, and it didn’t just start in 2025,” said Rob Bhatt, a home insurance expert with LendingTree. “Really since about 2020, we’ve seen an uptick in both the number of storms and the severity of storms.”
Credit: HYOSUB SHIN / AJC
Credit: HYOSUB SHIN / AJC
Those storms include powerful wind and hail, tornadoes and coastal storms that often damage entire neighborhoods rather than isolated homes. At the same time, inflation has pushed the cost of construction materials and labor significantly higher.
“You kind of have these impacts that compound each other,” Bhatt said. “Insurance companies have to rebuild more homes, and the cost of rebuilding each one is more expensive than it used to be.”
Although Georgia’s 2025 increase exceeded the national average, Bhatt said the state is far from alone. Nationally homeowner’s insurance premiums have risen an average of 47% since 2020. Georgia has experienced a roughly 40% increase during that same period, ranking 33rd among states for growth.
Georgia Insurance Commissioner John King’s office, which approves insurance rates, did not immediately respond to a request for comment.
Unlike some states where insurance costs are concentrated in coastal regions, Georgia’s risks are spread across much of the state.
While coastal communities face hurricanes and storm surge, inland areas regularly experience damaging thunderstorms, hail and tornadoes. Hurricanes that make landfall in neighboring states can bring destructive winds and flooding into Georgia.
Bhatt said some of the state’s highest insurance rates are found away from the coast. Metro Atlanta homeowners also tend to pay above average rates because insurers factor in additional risks like theft, crime and the higher costs associated with repairing homes in densely populated areas.
Another factor is Georgia’s rapid growth.
Credit: John Spink
Credit: John Spink
As housing prices have risen in urban areas, more people have moved into previously undeveloped areas, replacing farmland with homes. While that growth has expanded housing options, it has also increased insurers’ potential losses when severe weather strikes.
“When these storms happen, they’re impacting more homes,” Bhatt said. “The cost of these storms is greater because there are more homes in the path of danger.”
There are some signs that the pace of premium increases may be slowing.
Bhatt said while Georgia’s average increase was about 7% in 2025, that was smaller than the increases seen during the previous two years. If inflation continues to stabilize and the frequency of costly disasters levels off, homeowners could see insurance prices begin to stabilize as well.
Bhatt cautions that stabilization does not necessarily mean rates will decline.
“The big thing is price stability and inflation leveling off,” Bhatt said. “If we see the amount of damage each year stabilize, that will also put less pressure on insurance companies to raise their rates.”
How can homeowners keep rates lower?
As insurers adjust to growing risks, they are also becoming more selective about which homes they insure.
Older roofs, outdated electrical systems and aging windows can increase premiums or make it harder to find coverage. On the other hand, homeowners who invest in stronger, more resilient homes may qualify for discounts.
Bhatt said replacing an aging roof before it fails can be one of the smartest investments homeowners make. Impact-resistant roofing materials, storm shutters and other upgrades designed to withstand severe weather often make homes more attractive to insurers.
For homeowners facing a large renewal increase, Bhatt recommends starting with a conversation with their insurance agent.
There may be discounts available for home improvements, updated plumbing or electrical systems, smart leak detectors or security devices that are not already reflected in the policy.
If the premium still seems unreasonable, shopping around is often worthwhile.
Bhatt recommends comparing quotes every few years or anytime a policy experiences a particularly large increase.
Bhatt also encourages homeowners to review their deductibles. Choosing a higher deductible can lower annual premiums, though homeowners should be prepared to cover more out-of-pocket costs if they file a claim.
Avoiding insurance claims for relatively minor repairs can keep rates lower, because multiple claims over a short period can lead to higher premiums or make it harder to renew coverage.
Credit: Jason Getz / Jason.Getz@ajc.com
Credit: Jason Getz / Jason.Getz@ajc.com
Finally, Bhatt said one of the biggest misconceptions homeowners have is about flooding.
Standard homeowner’s insurance generally covers wind damage from hurricanes and severe storms but does not cover flood damage. Separate flood insurance is often necessary, particularly in flood-prone areas.
“Unfortunately, a lot of people don’t realize that their homeowner’s insurance doesn’t cover flooding until after a flood,” Bhatt said.
As severe weather becomes more frequent and rebuilding costs remain elevated, Bhatt says homeowners who maintain and strengthen their homes may be in the best position to manage rising insurance costs, even if broader market pressures remain outside their control.
About the Author
Keep Reading
The Latest
Featured
