How Much Has Home Insurance Gone Up?

Dramatic Increases Over Recent Years

Home insurance has increased significantly. The average homeowner now pays $900 more per year for home insurance than they did in 2021. More specifically, since 2021, premiums have climbed 46%, roughly three times as much as inflation.

2025 Saw Double-Digit Growth

Last year was particularly painful for homeowners. Overall, rates rose an average of 12% across the country in 2025, pushing the national average cost to $2,948 by the end of the year. Even more concerning, average home insurance costs rose in 45 states and Washington, D.C., in 2025, while rates remained level or decreased in only five states.

2026 Outlook: Slower But Still Rising

The good news is that increases are moderating. Following four consecutive years of rising premiums, Insurify data scientists project the average annual cost of home insurance will rise another 4%, to $3,057, by the end of 2026. This represents a significant slowdown from the 12% increase seen in 2025.

Regional Variations Are Massive

Not all states are experiencing the same increases. According to Matic's data, the average premium for new policies currently stands at $1,966, a 9.3% increase from 2024. However, some states saw extreme jumps in 2025, with premiums jumping by more than 20% in six states, including Minnesota (+34%), Colorado (+33%), Nebraska (+25%), and Oklahoma (+24%).

California homeowners should brace for significant increases, as Californians could see their home insurance rates increase 16% by the end of 2026, driven by the devastating Los Angeles wildfires.

Why Costs Keep Rising

The primary driver is climate-related disasters. Insured losses from natural catastrophes in the U.S. averaged $100 billion a year between 2023 and 2025, up from an annual average of around $15 billion per year a decade earlier. Additionally, deductibles have increased 24.5% from 2024 to 2025, compared to 15% the previous year, meaning homeowners are paying more in premiums while also shouldering more financial responsibility when claims occur.