Homeowners insurance premiums rose an average of 8% in 2026, according to Cotality (formerly CoreLogic). The national average annual premium now stands at $2,424, up from $2,100 in 2024. Homeowners in high-risk states face far steeper increases. Florida and Louisiana are on track for premiums rising as much as 27%, driven by hurricane exposure, insurer exits, and litigation costs.
The 8% national average follows a 62% cumulative increase from 2022 to 2025. In four years, the typical homeowner's insurance bill has jumped from $1,500 to $2,424. For many homeowners, insurance now represents a larger monthly expense than property taxes.
What Is Driving Home Insurance Costs Higher
- Average premium increase: 8% nationally in 2026
- National average annual premium: $2,424
- Florida/Louisiana projected increase: up to 27%
- Cumulative increase 2022-2025: 62%
- Climate-related losses exceeded $100 billion for the fourth consecutive year
Climate Risk Is Repricing Insurance
Insurers paid out over $100 billion in U.S. catastrophe losses for the fourth consecutive year in 2025. Hurricanes, wildfires, hail storms, and flooding are no longer considered outlier events. They are annual expectations that must be priced into premiums.
California wildfire zones saw 15-25% premium increases as insurers returned to the market under state-mandated reforms. Texas and Oklahoma face hail-related increases of 10-15%. The Midwest, historically a low-risk zone, experienced increased severe convective storm losses that pushed premiums up 5-8%.
"Climate change is no longer a future risk. It is a current cost," said Mark Friedlander, director of corporate communications at the Insurance Information Institute. "Insurers are adjusting their models in real time, and premiums reflect the new reality."
Tariffs Add to Construction Costs
Tariffs on imported building materials increased the cost of home repairs by 8-12%, according to the National Association of Home Builders. Lumber, roofing materials, and drywall all carry tariff surcharges that insurers pass through to policyholders via higher premiums. When a roof costs $18,000 to replace instead of $15,000, the insurer prices that difference into premium calculations.
State-by-State Impact
Highest Increases
Florida leads with projected 27% increases. State-backed Citizens Property Insurance, the insurer of last resort, covers over 1.4 million policies, up from 600,000 three years ago. Louisiana follows with 22% increases as multiple private insurers left the state. California wildfire zones face 15-25% increases.
Most Stable Markets
Midwest states like Ohio, Indiana, and Iowa see increases of 3-5%, the lowest nationally. The Northeast, excluding coastal areas, averages 4-6%. These regions benefit from lower catastrophe exposure and more competitive insurance markets.
How to Lower Your Home Insurance Costs
Improve your credit score. Insurers in 47 states use credit-based insurance scores in pricing. Raising your score from "fair" to "good" can reduce premiums by 10-15%. Install smart home security systems. Monitored alarm systems, water leak detectors, and smart smoke alarms qualify for discounts of 5-20% at most insurers.
Increase your deductible from $1,000 to $2,500. This single change reduces premiums by 15-25% at most carriers. Shop your coverage every two to three years. Loyalty does not reduce premiums. Competitive quotes do. Bundle your homeowners and auto insurance for a multi-policy discount of 5-15%.
