What are the reason home insurance increase in the United States and what cause the increase in each state?

"The cost of homeownersâ€™ insurance for regions exposed to hurricane landfall has in many cases dramatically increased. Some insurers stopped issuing new policies, particularly in coastal regions with high property values, forcing state goThe 2004 season was an exceptional year for tropical cyclones. Florida was the first state to experience four hurricanes in a single year since 1886, when Texas was repeatedly battered. Three of the hurricanes that struck Florida â€” Charley, Ivan and Jeanne â€” were classified as major hurricanes of Category 3 or greater, with winds exceeding 177 kilometers per hour (110 miles per hour). The fourth hurricane to hit Florida, Hurricane Frances, struck as a Category-2 storm. On the other side of the world, 10 storms with winds of tropical storm strength or greater struck Japan and â€œblew awayâ€ the previous record of six storms, set in 1990.

The 2005 Atlantic hurricane season broke numerous records including the largest number of named storms (28), hurricanes (15), Category-5 hurricanes (four), tropical cyclone landfalls in the United States (nine), and intense hurricane landfalls in the United States (five). Hurricane Katrina also produced the largest insured loss, estimated at more than $45 billion, a record for the property catastrophe industry.

Hurricane landfalls in 2004 and 2005 caused more than $75 billion in insured property losses in the United States alone.

These two active seasons were followed by several business-related phenomena, which caused the price of insurance to increase. First, in the spring of 2006, a leading risk-modeling firm released a new version of a U.S. hurricane cat model, which suggested that, relative to earlier estimates, average annual losses could be up to 40 percent higher for residential properties and 70 percent higher for commercial properties.

These increased losses were related both to changes in model vulnerability algorithms made after extensive surveys of building performance during the previous two hurricane seasons, and to an increase in the modeled probability of hurricane landfall, related to multidecadal variations in hurricane activity. Instead of using an average of hurricane activity over the past 100 years, the hurricane probability represents an expected average over the next five years. This five-year outlook attempts to balance our scientific understanding of multidecadal variability in the ocean and atmosphere â€” we are currently in an era with hurricane activity above the long-term average â€” and of shorter-term climate variability driven by phenomena such as the El NiÃ±o Southern Oscillation (El NiÃ±os tend to suppress hurricane genesis in the Atlantic) against the insurance industryâ€™s business requirements.

Second, both actual hurricane losses and the increase in model-estimated losses caused rating agencies to change the capital requirements for insurers and reinsurers. To maintain their credit rating, insurers and reinsurers needed to limit their exposure to potentially huge losses. Thus, insurers needed to buy more property catastrophe reinsurance and reinsurers needed to sell less.

Third, the large losses of 2004 and 2005 and the expectation of additional events prompted many insurers to reduce their exposure in high-risk and high-value coastal areas. For example, some insurance companies have stopped issuing new policies in areas, such as Long Island, where they think the risk of a large loss from a hurricane is too high. Fourth, Florida changed the details of their state-backed insurance fund in an effort to maintain solvency. And finally, the National Flood Insurance Program borrowed more than $20 billion, yet still failed to meet its obligations from the 2005 hurricane season. The net effect of these factors was a dramatic increase in the cost of property insurance and a reduction in its availability."