Why Homeowners Insurance Keeps Rising and What You Can Do

Home insurance has been one of the fastest-rising costs for homeowners. Insurify estimated the average annual premium was about $2,948 at the end of 2025, after a 12% jump that year, and projected it would rise another 4% to around $3,057 by the end of 2026. Costs vary hugely by state: Florida averages over $8,000 a year, according to Insurance.com.

Why premiums are rising

• Severe weather: More frequent and costly storms, hail, wildfires and floods.
• Rebuilding costs: Higher prices for materials and labor mean higher claim payouts.
• Reinsurance: Insurers’ own insurance costs have climbed.
• Insurers leaving markets: Fewer choices in some high-risk areas.

How to lower your premium

1. Shop around. Get at least three quotes with the same coverage, deductibles and limits.
2. Raise your deductible. If you have savings to cover it, a higher deductible can lower your premium.
3. Bundle with car insurance, but compare the bundle against separate policies.
4. Ask about discounts for security systems, smoke detectors, water leak sensors, a newer roof or being claims-free.
5. Strengthen your home. Impact-resistant roofing, storm shutters and other upgrades may earn discounts, especially in storm-prone states.
6. Avoid small claims. Filing claims for minor damage can raise your rates. Save insurance for big losses.
7. Keep your credit healthy, since most states allow credit-based insurance scores.

Make sure you’re covered for the right things

• Dwelling coverage should match the cost to rebuild, not your home’s market value.
• Replacement cost coverage for belongings pays to replace items; actual cash value subtracts depreciation.
• Separate deductibles: Many coastal and storm-prone policies have a percentage deductible for wind or hurricane damage.
• Flood and earthquake are usually excluded. Flood insurance is available through the National Flood Insurance Program and private insurers.

If you’re dropped or non-renewed

Shop with an independent agent who can quote multiple companies. If you can’t find coverage, your state’s FAIR plan or insurer of last resort may be an option, though often at a higher cost.