Average Home Insurance Premiums Expected to Surpass $3,000 This Year

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Average Home Insurance Premiums Expected to Surpass $3,000 This Year By: Leslie Cook Leslie Cook Editor, Real Estate | Joined November 2019 Leslie Cook is Money’s lead real estate editor covering trends in the housing market, mortgage rates and real estate. She also writes about home renovation trends and tips. Has also written: How to Find Affordable Homeowners Insurance in 2024 Daily Mortgage Rates Trended Higher This Week | April 23 & 24, 2022 Current Mortgage Rates: March 23 to March 27, 2026 Are You Making This Six-Figure Budgeting Mistake With Home Repairs? 5 Best Mortgage Refinance Companies of March 2026 See full bio Editor: Katherine Peach Katherine Peach Associate Editor | Joined January 2025 Katherine Peach is an associate editor with a focus on news and email at Money. She didn’t always intend to write about money. She’s a classically trained pianist who dreamed of becoming an archaeologist. However, in 2007 Katherine began working in financial publishing as an editor for Agora Inc. (Apparently, unearthing ideas about improving your personal finances isn’t such a bad career alternative!) Katherine’s writing and editing work has been featured in Investing Daily, Clever, Investor Junkie, The Palm Beach Letter, Truth & Plenty, Independence Monthly, NICHE, AmericanStyle, AntiqueWeek, Millennial Money, Money Done Right, TheStreet, Sure Dividend and many others. Katherine holds a Bachelor of Arts in Ancient Studies with concentrations in Archaeology and Ancient Languages and a minor in Literature from the University of Maryland, Baltimore County. She is a member of Phi Beta Kappa. Has also written: What Should You Do With Your Pennies? Here Are the Best Options How to Protect Yourself From Card Skimmers at ATMs and Gas Pumps Stamp Prices Won't Rise This Month, but These USPS Shipping Costs Will Debit Card Fraud Is on the Rise. Here's What I Did When It Happened to Me New Bill Aims to 'Actually' End Taxes on Social Security See full bio Published: Mar 27, 2026 1:56 p.m. EDT 5 min read Money; Getty Images If you're already struggling with the high cost of homeowners insurance, we've got bad news: Premiums are set to climb even higher this year. A new report from insurance marketplace Insurify projects that homeowners will see a 4% increase in premiums by the end of 2026, bringing the average annual cost from $2,948 to $3,057 — with some states seeing even larger jumps. This is the fifth consecutive year of premium hikes: Since 2021, insurance costs have increased by 46%, three times faster than inflation during the same period. Matt Brannon, senior economic analyst at Insurify, says the key reasons for the rapid rise are the increased intensity and frequency of extreme weather events, as well as higher home-building costs. Ads by Money. We may be compensated if you click this ad.AdPowered byYou Could Be Saving On Homeowners InsuranceAnswer a few quick questions to check which company fits your insurance needs. Enter Your ZIP Code to Get Started.Zip CodeNextBy clicking “Next”, I agree to Money’s Terms of Use and Privacy Notice, and consent to the processing of my personal information. I understand that Money may receive compensation from its partners after I submit my information. Partner Disclaimers & DisclosuresYou Could Be Saving On Homeowners InsuranceAnswer a few quick questions to check which company fits your insurance needs. Enter Your ZIP Code to Get Started.Zip CodeNextBy clicking “Next”, I agree to Money’s Terms of Use and Privacy Notice, and consent to the processing of my personal information. I understand that Money may receive compensation from its partners after I submit my information. Partner Disclaimers & Disclosures {{{title}}} {{{list}}}{{{disclaimer}}} Back Here are the top homeowners insurance companies based off your selectionClick below to begin the quote process:{{{top10_widget}}}Start OverWe're sorryNo exclusive offers are available for your areaStart OverEmail me my resultsIf you're finding this valuable, why not take it a step further? Sign up now to receive expert tips, personalized advice, and the latest updates on personal finance directly to your inbox.Yes! Sign me UpNo Thanks, Continue to my matchBackBy clicking "Yes!

Sign Me Up", I agree to receive newsletters and promotions from Money and its partners. I also agree to Money's Terms of Use and Privacy Notice and consent to the processing of my personal information. "Severe storms, which bring strong winds, hail and even tornadoes, are causing more destruction than in years past," Brannon tells Money in an email. "These events are driving up insurer losses, and they often respond by seeking higher premiums." Extreme weather has caused nearly $3 trillion in damages across the United States since 1980, with most of the losses resulting from flooding, windstorms, heavy snow, tornadoes and wildfires. According to Brannon, the costs related to weather events in the U.S. now average about $150 billion annually, more than double the $63 billion incurred just 10 years ago. In 2025, fires in Los Angeles County alone led to $62 billion in insured losses. But higher premiums are just one aspect of how homeowners insurance costs are changing. In the report, Insurify points out that insurers operating in states with an increased risk of severe weather often structure their policies so that homeowners bear a greater share of repair costs. In states where tropical storms and hurricanes are common, for example, insurance providers may impose a deductible equal to 5% of a policy's coverage amount, resulting in thousands of dollars in out-of-pocket homeowner expenses. More than half the premiums in Colorado are earmarked for potential hail damage, while homeowners in "Tornado Alley" — a section of the U.S., usually in the Southern Plains, where there is a high risk of tornadoes forming — may be required to pay a percentage of their policy's coverage as a separate wind or hail deductible. States that are at high risk of experiencing a damaging storm, regardless of whether it's caused by wind, rain or fire, are also the most likely to have the highest premiums already. Those higher premiums aren't limited to states that have experienced a significant storm, either. Every time a major disaster hits, insurance costs also rise in states not directly impacted by the event. As coverage costs continue to skyrocket, many homeowners are looking for ways to save. Some will seek to lower expenses by increasing their deductibles. Some make the even riskier choice of skipping insurance coverage, if circumstances permit. All mortgage lenders, for example, require homeowners insurance in order to approve the loan, so dropping coverage is not an option for those who don't own their property outright. Homeowners associations and condo bylaws also typically require home insurance. On the bright side, Brannon says, insurance providers often offer discounts to homeowners who take steps to minimize their home's risk exposure, such as making weather-resistant upgrades. Insurers will also offer lower rates for signing up for automatic payment and paperless billing, or for bundling several policies together. States where homeowners insurance premiums are projected to rise the most in 2026 The increasing severity of severe weather and the rising cost of repairing or replacing damaged properties are likely to cause more economic pain for American homeowners this year. Insurance premiums are expected to increase once again, with these states seeing the largest hikes: California: 16% increase (+$388 on average) Nebraska: 13% increase (+$532) New Mexico: 11% increase (+$246) Georgia: 10% increase (+$288) South Carolina: 9% increase (+$278) Arkansas: 7% increase (+$216) Missouri: 7% increase (+$209) Oregon: 6% increase (+$86) Oklahoma: 5% increase (+$243) Illinois: 5% increase (+$179) Ads by Money. We may be compensated if you click this ad.AdNeed to insure your home or looking to lower your rate?Click below to see if you can save.View Rates More from Money: The Unexpected Factor That Could Be Driving Up Your Homeowners Insurance Rates Which Types of Storm Damage Are — and Aren't — Covered by Your Homeowners Insurance 12 Factors That May Be Driving Up Your Homeowners Insurance Premium SHOWHIDEAds by Money. We may be compensated if you click this ad.AdFind the Home Insurance policy that meets your needsView Rates