Home insurance costs — already soaring — are likely to keep climbing. Here's why.

Insurance companies are jacking up their premiums on homeowners to account for their rising losses from storms like Hurricane Beryl. 

Although that will take a financial toll on millions of Americans, it could mean big profits for property and casualty insurers like Allstate and Progressive in the coming year. Investors have bid up shares in the sector roughly 19% so far this year, outpacing the S&P 500's 17% gain.

Meanwhile, keeping homeowners' insurance has become increasingly challenging for many people, particularly those who live in the growing number of areas around the country prone to natural disasters. For example, Oklahoma residents saw their home coverage costs surge 42% between 2018 and 2023, while rates in Arkansas and Texas soared 32.5% and 60%, respectively, according to an analysis from S&P Global.