Home insurance premiums in the US are set to climb for a fifth consecutive year in 2026, deepening an already sharp affordability squeeze for many households, according to Insurify’s 2026 Insuring the American Homeowner Report.
According to the report, the company projects that the average annual home insurance cost will rise another 4% this year, from $2,948 at the end of 2025 to $3,057 by December 2026. That would leave the typical homeowner paying roughly $900 more per year than in 2021. In 2025 alone, premiums increased by an average of 12% nationwide, with rates rising in 45 states and Washington, D.C., and holding flat or falling in only five.
“Home insurance costs have risen sharply nationwide since the pandemic,” said Matt Brannon, Insurify senior economic analyst and 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.”
Insurify’s modeling points to continued upward pressure in 2026, with pronounced regional differences. California is projected to see the fastest growth, with average premiums expected to jump 15.8% to $2,843 by year’s end. Nebraska, New Mexico, and Georgia are also forecast to record double‑digit increases, of 13.2%, 10.8%, and 10% respectively, taking average annual costs to $4,560, $2,524, and $3,167.
Those projections follow a year in which several states saw far steeper hikes than the national average. In 2025, Minnesota’s average home insurance cost rose 34% to $3,530, Colorado’s climbed 33% to $3,996, and Iowa’s increased 28% to $2,802. Nebraska’s average premium jumped 25% to $4,028 after a 5% decline the year before, while Oklahoma and South Carolina posted gains of 24% and 20%, to $4,962 and $3,092, respectively.
Insurify linked many of the sharpest increases to severe convective storms across the Midwest and Great Plains, including hail, straight‑line winds, and tornado outbreaks that have driven repeated loss years for carriers.
Since 2023, Minnesota, Colorado, Iowa, Illinois, Oklahoma, Louisiana, and Michigan have each seen average home insurance costs rise by more than 35%. Over that two‑year period, Minnesota’s average premium has climbed 64%, or $1,373, while Colorado’s is up 55%, or $1,412. Iowa’s typical cost is higher by 54%, Illinois by 48%, Oklahoma by 39%, Louisiana by 38%, and Michigan by 36%.
These state‑level trends mirror broader property‑catastrophe dynamics. Global natural catastrophe economic losses peaked at $328 billion in 2024, with insured losses of $137 billion and losses projected to trend toward $145 billion in 2025 as so‑called “secondary perils” such as wildfire, tornado, and hail move closer to primary‑cat status.
For many insurers, that has translated into higher reinsurance costs, larger deductibles, and tighter terms, particularly in catastrophe‑exposed zones.
Meanwhile, the affordability gap between states is widening.
Insurify found that premiums in the 25 most expensive states rose by an average of 14% in 2025, compared with 5% in the 25 least expensive states.
Florida remains the costliest home insurance market in the country, with a typical annual premium of $8,292, nearly three times the national average. Insurify said rates in Florida increased 18% in 2025 as carriers continued to reprice for hurricane risk, litigation pressures, and reinsurance expenses.
Survey responses in the report suggest the rate environment is reshaping consumer attitudes.
One in four homeowners said they would drop home insurance if they could, and nearly half said home insurance should be optional, despite lenders generally requiring coverage on mortgaged properties. Insurify expects eliminating homeowners' insurance would save the average household about $281 per month, but the report stressed that doing so would expose owners to potentially catastrophic losses, especially in catastrophe‑prone regions.
“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.”
In Q4 2024, the US property and casualty sector posted a $9.3 billion underwriting gain and profitability was expected to improve further in 2025, yet analysts warned that affordability and access remain constrained “due to rising premiums and climate‑related losses.”
As admitted carriers retrench from high‑risk segments, the excess and surplus market has expanded, particularly in catastrophe‑exposed states, offering standalone wind, flood, and wildfire coverage and deductible buybacks where standard markets have raised wind or hail deductibles substantially.
With the national average premium projected to break the $3,000 mark in 2026, how insurers balance rate adequacy, coverage availability, and political scrutiny over affordability is likely to remain a central issue for the US home insurance market.
