Home Insurance Costs Have Risen 46 Percent Since 2021. This Year Is the Fifth Straight Year of Increases.

For the fifth year in a row, homeowners are paying more to insure their properties. The average premium has climbed 46 percent since 2021, more than triple the rate of general inflation.

What You Should Know

The average annual cost of homeowners insurance is projected to reach $3,057 in 2026, up 4 percent from 2025, according to Insurify’s 2026 home insurance report. That follows a 12 percent increase in 2025. Since 2021, the average premium has risen by roughly $900, an increase of approximately 46 percent, according to Insurify data cited by Bloomberg.

A Pew Research Center survey of 3,524 U.S. adults conducted in March 2026 found that 71 percent of homeowners reported their insurance costs had gone up in recent years. Among those, 42 percent said costs had increased “a lot.” A separate survey by The Zebra found that nearly half of homeowners - 47 percent - said they would have difficulty affording their mortgage if premiums continue to rise.

The Money Trail

The increases are concentrated in high-risk states but are not limited to them. Insurify projects California premiums will rise 16 percent in 2026, the largest increase of any state. Nebraska is projected at 13 percent, New Mexico at 11 percent, and Georgia at 10 percent. Severe convective storms, which produce tornadoes, hail, and flooding, caused more than $52 billion in insured losses in 2025, the third-highest total on record, driving insurers to reprice aggressively, according to Insurify’s analysis.

Inflation in replacement and repair costs has compounded the impact. Replacement costs for property and casualty losses increased by 45 percent on average between 2020 and 2023, according to a Treasury Department report cited by CNBC. Labor costs for construction workers rose 37 percent between 2018 and 2022, further raising the cost to rebuild after a claim.

The Receipts

The Insurify 2026 home insurance rate projections, published in March 2026, provided the $3,057 average premium, the 46 percent since-2021 increase, and state-level projections. The Pew Research Center published its homeowner survey data in May 2026. CNBC’s reporting from May 2026 confirmed the premium increase trend and cited the Consumer Federation of America finding that premiums rose in 95 percent of U.S. ZIP codes between 2021 and 2024.

What Happens Next

Homeowners facing renewal increases can shop competing carriers, raise their deductibles to reduce premiums, or pursue mitigation upgrades such as roof hardening that qualify for discounts in certain states. In some high-risk states including Florida, California, and Louisiana, state programs offer grants for qualifying upgrades. The June 2026 CPI report, due July 14, is expected to show whether shelter and insurance costs continued accelerating through spring.

References: CNBC, 42% of Homeowners Say Insurance Costs Have Gone Up ‘A Lot’ | Pew Research Center, Most US Homeowners Say Their Home Insurance Costs Have Gone Up | Insurify, US Home Insurance Prices Set to Keep Rising With Severe Weather | The Zebra, 2026 State of Insurance Home Trend Report