How much homeowners premiums have risen
Insurify's data shows the national average annual premium at $2,948 at the end of 2025, up 12% from 2024. It projects a further 4% increase to $3,057 by the end of 2026, which would make five straight years of increases. Since 2021, home insurance costs have climbed 46%, compared with 16% for overall inflation.
Policyholders feel it. In J.D. Power's 2025 U.S. Home Insurance Study, 47% of customers said their premium went up in the past year, the highest rate of insurer-initiated increases in more than a decade. Among customers who were thinking of leaving their insurer after an increase, 43% named the price hike as the reason.
Why premiums keep climbing
Severe storms, not just hurricanes
Hail, straight-line wind and tornadoes, which insurers call severe convective storms, caused about $52 billion in insured losses in 2025, the third-highest total on record, according to Insurify. These storms hit the Midwest and Great Plains hardest, which is why states like Nebraska and Oklahoma now rank among the most expensive. Hail damage is also one reason insurers in hail-prone regions are changing how they cover roofs, as explained below.
Wildfire
The Los Angeles County fires of 2025 caused $62 billion in economic damage, making them the costliest non-hurricane disaster in U.S. history. California insurers are now seeking large rate increases. In 2025, the California Department of Insurance approved a 17% emergency rate increase for State Farm, the state's largest home insurer.
Hurricanes
Hurricanes remain the main driver of premiums in Florida and along the Gulf Coast. Florida's average rose 18% in 2025, which Insurify ties to hurricane losses.
Rebuilding costs
Insurers price policies on what it would cost to rebuild your home, not its market value. Building material prices rose 15% in the past year, according to Insurify, so the same house costs more to insure even if nothing else changes.
Reinsurance
Home insurers buy their own insurance, called reinsurance, to cover big catastrophe years, and that cost flows into your premium. Here the news is better. Broker Guy Carpenter reports that risk-adjusted catastrophe reinsurance prices for Florida insurers fell about 15%–20% across many layers at the June 1, 2026 renewals, as reinsurers offered more capacity and investors poured more than $3.2 billion into new Florida-focused catastrophe bonds. Guy Carpenter says this supports "sustainable rate relief for policyholders," though it gave no figures for homeowner rates.
Where home insurance costs the most and least
| Most expensive states | 2025 average | 2025 change | Projected 2026 change |
|---|---|---|---|
| Florida | $8,292 | +18% | +2% |
| Louisiana | $5,050 | Flat (after +39% in 2024) | 0% |
| Oklahoma | $4,962 | +24% | +5% |
| Texas | $4,380 | +14% | +3% |
| Nebraska | $4,028 | +25% | +13% |
Source: Insurify home insurance price projections (2026).
The cheapest states in Insurify's data were Vermont ($1,087), Utah ($1,319), Maine ($1,374), New Hampshire ($1,434) and Alaska ($1,449). The average Florida homeowner pays roughly 7.6 times what a Vermont homeowner pays.
Florida: high but stabilizing
Florida's numbers depend on who is measuring. Insurify puts the 2025 average at $8,292, while the Florida Office of Insurance Regulation's April 2026 data showed a statewide average of $3,815 including wind coverage. Either way, the trend is improving. Premiums fell in 51 of Florida's 67 counties in the first half of 2026, according to the Insurance Information Institute. Twenty-one insurers have entered the state since the 2022–2023 legal reforms, Florida insurers posted a combined ratio of about 77% in 2025 (meaning they were solidly profitable), helped by the legal reforms and the first hurricane season in 10 years without a landfalling tropical storm in the state, and the state-backed Citizens Property Insurance has shrunk from about 1.4 million policies in 2023 to about 270,000.
Louisiana and Texas
Louisiana's average leveled off in 2025 after a 39% jump in 2024, and Insurify projects no change in 2026. Texas faces both hail and hurricanes; its average rose 14% in 2025, and Insurify projects a further 3% in 2026. Louisiana offers some of the most direct help for homeowners: a state tax credit of up to $10,000 for certain storm-resistant roofs and Fortified Home grants of up to $10,000.
California: low average, fast-rising
California's 2025 average of $2,455 is below the national figure, but Insurify projects a 16% increase in 2026, the largest of any state. The bigger problem is finding coverage at all. Allstate stopped writing new California home policies in 2022 and State Farm in 2023. The California FAIR Plan, the insurer of last resort, had 696,562 dwelling and commercial policies in June 2026, up 157% from September 2022. FAIR Plan policies cover fire only, so homeowners often need a second policy for other risks.
California's Sustainable Insurance Strategy, in effect since January 2025, lets insurers use catastrophe models and reinsurance costs when setting rates, in exchange for writing more policies in wildfire-distressed areas. Insurers that use these tools must write at least 85% of their statewide market share in distressed areas or grow their writings there by at least 5%. Mercury and CSAA have announced plans to write more, but Consumer Watchdog counts only about 12,189 additional policies committed so far. Progress is showing up slowly: the FAIR Plan's share of new owner-occupied, single-family mortgages fell to 5.6% in the first quarter of 2026, from 8.1% a year earlier. Still, about 40% of FAIR Plan customers in one sample also carried a second policy and paid about $2,000 more a year than those with the FAIR Plan alone.
Roof rules and deductibles: the hidden cost increases
Not every increase shows up in the premium. Insurers are also shifting more risk onto homeowners through policy terms.
- Actual cash value roof coverage. In hail-prone regions, insurers are moving roofs to actual cash value coverage. That subtracts depreciation, so an older roof pays out far less than the cost of a new one.
- Percentage hurricane deductibles. Hurricane deductibles are often 5% of your dwelling coverage and can exceed $10,000. On a home insured for $300,000, a 5% deductible is $15,000 out of pocket before coverage starts. Our guide to home insurance and natural disasters explains named-storm and wind deductibles in detail.
Read your renewal declarations page line by line. A premium that barely changed may hide a lower roof payout or a higher deductible.
Ways to lower your homeowners premium
- Shop around at every renewal. Average prices vary widely between insurers for the same home. In NerdWallet's 2026 data for $400,000 of dwelling coverage, averages ranged from $1,940 (USAA, for military families) and $2,415 (State Farm) to $2,715 (Allstate). Our comparison of the best home insurance companies covers service and claims ratings too.
- Ask your insurer to explain the increase. J.D. Power found that customers who understood why their rate rose and were offered options to lower it were 184 points more satisfied than those who got neither, and even more satisfied than customers with no increase. Ask what discounts or coverage changes are available.
- Strengthen your roof. Ten states require insurers to offer discounts for roofs built to certain wind standards. If you're replacing a roof anyway, ask your insurer which upgrades qualify, and check state programs like Louisiana's grants and tax credit.
- Choose your deductible deliberately. A higher deductible usually lowers the premium, but make sure you can cover it, including any percentage hurricane or wind deductible. An emergency fund sized to your deductible protects you.
- Keep coverage adequate. Cutting your dwelling limit to save money is risky when building costs are up 15% in a year. Underinsuring can leave you unable to rebuild.
- In Florida, know the Citizens rules. If you're with Citizens, you must accept a private offer priced within 20% of your Citizens premium. Compare the coverage, not just the price.
If you're buying a home, get insurance quotes before you make an offer. Premiums can change what you can afford, especially in high-risk states. See our checklist for homeowners insurance before you buy and our mortgage lender guide.
Frequently asked questions
Why is my homeowners insurance going up?
Storm and wildfire losses, higher building costs and rising rebuild values are the main reasons. Building material prices rose 15% in the past year, and hail, wind and tornadoes caused about $52 billion in insured losses in 2025, according to Insurify.
How much is homeowners insurance going up in 2026?
Insurify projects the national average will rise about 4%, from $2,948 to $3,057. Projected increases vary by state, from 0% in Louisiana to 13% in Nebraska and 16% in California.
Which state has the most expensive home insurance?
Florida, with an average of $8,292 in 2025 in Insurify's data, followed by Louisiana, Oklahoma, Texas and Nebraska. Vermont was cheapest at $1,087.
Are Florida home insurance rates going down?
In many areas, yes. Premiums fell in 51 of Florida's 67 counties in the first half of 2026, according to the Insurance Information Institute, as new insurers entered the market after the 2022 and 2023 reforms.
What is a percentage hurricane deductible?
It's a deductible set as a share of your dwelling coverage, often 5%, instead of a flat dollar amount. On a home insured for $300,000, a 5% deductible means you pay the first $15,000 of hurricane damage.
How can I lower my homeowners insurance?
Compare quotes at each renewal, ask your insurer about discounts and options, upgrade your roof to wind standards where discounts apply, and choose a deductible you can afford. Avoid cutting your dwelling coverage below rebuild cost.
Sources
- Insurify – Home insurance price projections (2026)
- Agency Checklists – Insurify projects home insurance premiums to reach $3,057 in 2026 (Mar. 2026)
- Business Wire – J.D. Power 2025 U.S. Home Insurance Study
- NerdWallet – The cheapest home insurance (Feb. 2026)
- Insurance Business – Citizens cuts policy count to 270,000 (Sept. 2026)
- Beinsure – California FAIR Plan now insures more new home loans (Aug. 2026)
- Beinsure – California insurers pledge new policies (Sept. 2026)
- United Policyholders – California's FAIR Plan carries growing load (Oct. 2026)
- Insurance Business – Florida insurers see lower reinsurance pricing at June renewals (2026)
- ABC7 – Allstate also halting home insurance policies in California (June 2023)
- Insurify – What is extended replacement cost?
Rates, fees and terms change often. Figures were checked in October 2026; confirm current details with the provider before you apply.