Home Insurance Premiums Going Up in 2026

Home insurance premiums have been rising rapidly across the U.S., and trends suggest 2026 won’t be much different. Understanding these increases — and why they’re happening — can help you anticipate what you might pay and plan accordingly.

Recent and Forecasted Premium Increases

• Over the past six years (2019–2024), U.S. homeowners' insurance premiums rose about 40.4% nationwide.
• In 2024 alone, many insurers implemented double-digit rate hikes. One analysis found the “average effective rate increase” for homeowners' insurance was 10.4% in 2024, following increases in the prior year.
• For 2025, a major industry forecast estimates an 8% national increase in premiums, pushing the average annual cost higher.
• Looking ahead to 2026, further increases are expected. Some forecasts predict increases in the 8% per year range, similar to 2025.

If these trend lines hold steady, a homeowner whose premium was $3,000 in 2024 can reasonably expect the cost to climb to around $3,240–$3,300 in 2025 — and possibly $3,500 or more in 2026, depending on location and risk factors.

Why Are Premiums Rising?

Several factors are driving the upward pressure on home insurance costs:

• Rising rebuild and repair costs: Materials such as lumber, roofing, drywall, wiring, and other building essentials have increased in price.
• Labor shortages and higher wages: Skilled labor (roofers, electricians, plumbers, etc.) is more expensive, which drives up the cost of claims — and thus premiums.
• Inflation and supply-chain delays: These factors increase the time and expense needed to repair or rebuild after a claim.
• Increased frequency and severity of weather disasters (hail, wind, storms, floods, etc.), which lead to more claims and higher costs for insurers.
• Rising reinsurance and underwriting costs as insurers respond to growing risk from climate-related events.

What This Means for You (Especially in Storm-Prone States like Texas)

If you live in a state prone to severe weather — such as Texas — expect steeper premium increases than the national average. For instance:

• Texas saw a 27% increase in homeowners' insurance premiums over the last three years.
• In many Texas counties, insurers are raising rates or tightening underwriting due to increased hail, wind, and storm damage.

Thus, it's wise to budget for a premium that may increase year over year — possibly by 8–15% annually, depending on your area and coverage.