Nevada Homeowners Face Major Insurance Premium Increases in 2025

Las Vegas, Nevada — More than 100,000 Nevadans will encounter a hike in their homeowners or renters insurance during the first half of 2025, as the state’s Division of Insurance has approved rate changes for 12 insurers, some of which are as steep as 25 percent.

The increases come amid a broader trend in the state’s insurance landscape. Many of these insurers had already upped their rates in January. The rising costs are attributed to several factors, including escalating real estate prices, heightened repair and labor expenses attributed to inflation, and an aging housing stock.

“Real estate and home values have risen. Inflation, construction materials costs, and skilled labor availability are driving up the costs of rebuilding and repairing properties,” a spokesperson from the Division of Insurance stated.

In January, Nevada recorded a median home price of $485,000, marking the highest level ever noted, according to Las Vegas Realtors. The state is grappling with a housing crisis, driven by a lack of available land for development, elevated mortgage rates, and a slowdown in construction coupled with soaring labor costs.

Concerns about natural disasters, such as the recent wildfires in Los Angeles, have further compounded worries for Nevada homeowners and renters. Increased reinsurance costs, which serve as insurance for insurers, and tighter underwriting standards may also contribute indirectly to the higher premiums.

“Nevada insurers relying on reinsurance may face higher costs in the future, which could lead to potential rate increases,” the DOI spokesperson elaborated. “Increased claims and environmental risks could prompt insurers to adopt stricter underwriting standards, potentially making coverage less available or more expensive in high-risk areas.”

The DOI also indicated that the rising costs of housing repairs are linked to a significant uptick in the frequency and cost of natural disasters.

“Natural disasters are more costly now, and they are happening more often and in areas that, historically, have not been as frequently affected in the past,” noted the spokesperson.

Every insurer looking to adjust rates must submit their requests to the Nevada Division of Insurance. Each proposed change is scrutinized by the DOI’s actuarial team to ensure the adjustments are not “excessive, inadequate, or unfairly discriminatory.”

“The mission of the Nevada Division of Insurance is to protect the rights of Nevada consumers in their experiences with the insurance industry and to ensure the financial solvency of insurers,” the spokesperson added.

Since January, nine insurers have already elevated their rates. For instance, Root Insurance gained approval for a 25 percent increase in tenant insurance, despite initially requesting a 55.3 percent hike. This change took effect on January 6 and impacted 453 Nevadans.

Hartford Insurance was also active, raising premiums across three of its home insurance combination policies by between 1.68 percent and 5.79 percent, affecting 1,197 residents. Trumbull Insurance Company and Mercury Casualty Company made similar adjustments, with impacts extending to thousands of Nevadans.

The rate hikes will continue throughout the first half of the year. Starting February 16, over 63,000 Nevadans with Travellers Property Casualty Insurance’s Home Insurance Combinations will see a slight increase of 0.007 percent, while Country Preferred insurance policies will see varied increases in March that could affect nearly 18,000 residents.

American Economy Insurance policyholders will see a 25.04 percent hike on March 15, and Privilege Underwriters Reciprocal Exchange will implement a 13.63 percent increase beginning May 15. Each of these adjustments corresponds to insurer requests but remain lower than the initial proposed changes.

The implications of these increased premiums will be felt across the state, impacting affordability for homeowners and renters alike. The situation continues to unfold as Nevadans navigate the challenges arising from a complex insurance landscape.