Insurify Projects Average Home Insurance Price Will Climb 4% in 2026, After Jumping 12% in 2025

Since 2021, home insurance rates have soared 46%, nearly three times the rate of inflation.

CAMBRIDGE, Mass., March 18, 2026 /PRNewswire/ -- Insurify, America's top-rated online insurance marketplace and leader in data-driven consumer insights, has released its 2026 Insuring the American Homeowner Report. This report incorporates Insurify's proprietary database of real home insurance quotes to assess 2025 trends and forecast 2026 outcomes.

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. California will see home insurance climb the fastest, an average of 16% by the end of the year, Insurify data scientists predict.

States likely facing double-digit percentage increases in 2026 include:

• California, +15.8% (to $2,843)
• Nebraska, +13.2% (to $4,560)
• New Mexico, +10.8% (to $2,524)
• Georgia, +10% (to $3,167)

The report points to continued volatility and a deepening crisis in the home insurance market, the expanding effects of climate change on a greater number of states, and a widening affordability gap among states.

How home insurance cost changed in 2025

Average home insurance costs rose in 45 states and Washington, D.C., in 2025, while rates remained level or decreased in only five states. Overall, rates rose an average of 12% across the country, pushing the national average cost to $2,948 by the end of the year. The average homeowner now pays $900 more per year for home insurance than they did in 2021, Insurify found.

Six states experienced increases of 20% or more in 2025.

The home insurance affordability gap among states is widening, Insurify found. Premiums rose 14%, on average, in the 25 most expensive states, and just 5% in the 25 least expensive states. Florida remains the most expensive state for home insurance, with a typical premium of $8,292 annually, nearly three times the national average. Rates in Florida spiked 18% in 2025.

Midwest and Great Plains states saw some of the steepest increases in 2025, largely due to severe convective storms that can deliver hail, tornadoes, and other perils to affected areas. Since 2023, Minnesota, Colorado, Iowa, Illinois, Oklahoma, Louisiana, and Michigan have seen home insurance costs jump more than 35%.

Economic impact on U.S. homeowners

Consumers are feeling the strain of escalating home insurance costs.
"Home insurance costs have risen sharply nationwide since the pandemic," said Matt Brannon, Insurify senior economic analyst and the author of the American Homeowner Report. "Even where we project rate growth to slow this year, homeowners are unlikely to see real relief. In Minnesota, we project a 4% rise in home insurance prices. But this will stack on top of the nearly $1,400 premium increase residents, on average, have faced over the last two years."
One in four homeowners said they would drop coverage if they could, a recent Insurify survey found. And nearly half of those surveyed said home insurance should be optional. Lenders generally require homeowners to carry insurance on mortgaged properties.

Insurify's analysis found that eliminating homeowners insurance would save the average household $281 per month. Such a move, however, would expose homeowners to significant financial risk. Instead, homeowners should explore the many discounts and savings tools available to them.

"Homeowners nationwide are looking for predictability, not surprises, when it comes to their insurance costs," said Mallory Mooney, director of sales and service at Insurify. "Given rising rates, some homeowners and insurers are getting creative. We're seeing more interest in premium-locking programs that guarantee consistent premiums over three years for a small fee. That type of stability is in high demand in an era when insurance premiums have risen 36% in the past three years."

About Insurify:

Insurify is America's top-rated online insurance marketplace, offering a secure, spam-free way to compare and buy coverage. With a network of 500-plus carrier integrations, Insurify empowers consumers to compare auto, home, pet, and renters insurance in minutes, online or with the help of a licensed agent. Since 2016, Insurify's AI-powered technology has served over 196 million quotes and generated $200 billion in total coverage. By using Insurify, customers can save hundreds of dollars annually, with some saving up to 50% on their premiums. In 2026, Insurify expanded its innovation with Insurify Car, providing liability-only coverage through flexible weekly payment options.

For more information, contact:
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https://Insurify.com

SOURCE INSURIFY, Inc.