Home Insurance Rates in 2026
National Average Costs
The national average cost of home insurance is $2,424 per year for a policy with a $300,000 dwelling limit, which comes out to about $202 per month. However, other analyses show slightly different figures, with the average cost of homeowners' insurance in the U.S. at about $2,110 a year for $300,000 worth of dwelling coverage. These variations reflect different methodologies and data sources, but all indicate that national averages hover around $2,100-$2,500 annually.
Expected Rate Increases in 2026
Homeowners should prepare for continued premium growth. The average homeowner insurance premium is expected to rise 8% in 2026, followed by another 8% in 2027, according to real estate analytics firm Cotality. This follows several years of dramatic increases, making insurance affordability an ongoing challenge.
Looking ahead, 82% of homeowners expect their premiums to rise in 2026, with most anticipating modest increases of 1% to 5%, while another 29% expect increases of 6% to 10%. Despite these expectations, some industry experts suggest the pace of increases may moderate compared to recent years.
State-by-State Variations
Geographic location dramatically impacts costs. Florida is the most expensive state for home insurance at $7,136 a year, while Hawaii has the lowest home insurance rates, averaging $659 a year. Other expensive states include Nebraska, Louisiana, Oklahoma, and Kansas, where severe weather events like tornadoes, hurricanes, and hailstorms drive up claims costs.
States with lower disaster risks enjoy more affordable premiums. Vermont, Delaware, Alaska, New Hampshire, and West Virginia consistently rank among the cheapest states for homeowners' insurance.
What's Driving Higher Costs?
Rising construction and material costs, with aluminum rising 10 percent year-on-year, combined with the fact that 12 percent of U.S. residential housing stock faces high risk from hazards like wildfires, winter storms, and hail, contribute to premium increases. Home insurance now accounts for 9% of the typical U.S. homeowner's payment—the highest average on record.
Climate change continues to intensify natural disasters, pushing insurers to raise rates to maintain solvency. However, individual rates vary significantly based on coverage limits, deductibles, home age, construction materials, and personal factors like credit score.
