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The national picture
Home insurance prices have risen for five years in a row. Insurify’s report found the average premium reached $2,948 at the end of 2025, and projects a smaller 4% rise to about $3,057 in 2026. Over five years premiums have risen 46%, roughly three times general inflation. J.D. Power’s 2025 study found 47% of homeowners had an insurer-initiated price increase in the past year, the highest rate in more than a decade.
Most expensive states
| State | Average premium (end of 2025) | Projected change in 2026 | Main driver |
|---|---|---|---|
| Florida | $8,292 | +2% | Hurricanes |
| Louisiana | $5,050 | 0% | Hurricanes |
| Oklahoma | $4,962 | +5% | Hail and tornadoes |
| Texas | $4,380 | +3% | Hail and hurricanes |
| Nebraska | $4,028 | +13% | Hail and tornadoes |
Cheapest states
| State | Average premium (end of 2025) |
|---|---|
| Vermont | $1,087 |
| Utah | $1,319 |
| Maine | $1,374 |
| New Hampshire | $1,434 |
| Alaska | $1,449 |
Source: Insurify home insurance price projections, 2026.
A Florida homeowner pays on average more than seven times what a Vermont homeowner pays. California is a special case: its average ($2,455) is moderate, but Insurify projects a 16% rise in 2026, the largest of any state, driven by wildfire losses.
Why premiums keep rising
- Severe convective storms. Hail, wind and tornadoes caused about $52 billion in insured losses in 2025, the third-highest on record, hitting the Midwest and Great Plains hardest.
- Wildfires. The January 2025 Los Angeles County fires caused an estimated $62 billion in economic damage, the costliest non-hurricane disaster in U.S. history.
- Hurricanes remain the main cost driver in Florida and along the Gulf Coast.
- Rebuilding costs. Building material prices rose about 15% in a year, raising the cost of every claim.
- Bigger claims. Triple-I data shows the average homeowners claim reached $18,311 in 2022, with fire and lightning claims averaging $83,991.
Where prices are easing
Florida shows the market can turn. After legal reforms in 2022 and 2023, 21 insurers entered the state, and Triple-I reported premiums fell in 51 of 67 Florida counties in the first half of 2026. Reinsurance costs for Florida insurers fell about 15% to 20% at the June 2026 renewals. In California, new rules since January 2025 let insurers use catastrophe models in pricing if they write more policies in wildfire-distressed areas, and some insurers have pledged to expand.
What affects your own premium
- Rebuilding cost (your dwelling limit), size and construction type
- Location: weather risk, distance to a fire station and local building costs
- Roof age and material. In hail-prone regions some insurers now pay only depreciated value for older roofs.
- Claims history on you and the property (your CLUE report)
- Deductible, including separate hurricane or wind deductibles that are often 5% of dwelling coverage
- Credit-based insurance score in most states
How to lower your premium
- Compare at least three quotes. Insurer averages for the same home differ by hundreds of dollars; see our insurer comparison.
- Raise your deductible if you could cover it from savings.
- Bundle and stack discounts: see our discounts guide.
- Invest in mitigation. Ten states require discounts for roofs built to wind standards, and Louisiana offers grants and tax credits of up to $10,000 for storm-resistant roofs.
- Check you’re not over-insured on contents or extras you don’t need, while keeping the dwelling limit at full rebuilding cost; see our coverage guide.
Frequently asked questions
What is the average cost of homeowners insurance in 2026?
About $2,948 a year at the end of 2025, according to Insurify, projected to rise to about $3,057 by the end of 2026.
Which state has the most expensive home insurance?
Florida, at about $8,292 a year on average, followed by Louisiana, Oklahoma, Texas and Nebraska.
Which state has the cheapest home insurance?
Vermont, at about $1,087 a year, followed by Utah, Maine, New Hampshire and Alaska.
Will home insurance rates go down?
Nationally, increases are expected to slow to about 4% in 2026. Some markets, such as much of Florida, have already seen premiums fall, but storm and wildfire states are still rising.
Does my home’s value affect my premium?
Your rebuilding cost matters, not your market value. A home in an expensive neighborhood can cost less to insure than its price suggests if it’s cheaper to rebuild.
Sources
- Insurify – Home insurance price projections 2026
- Agency Checklists – Insurify projects premiums to reach $3,057 in 2026 (Mar 2026)
- NerdWallet – Cheapest homeowners insurance (Feb 2026)
- J.D. Power – 2025 U.S. Home Insurance Study (Business Wire)
- MoneyGeek – Homeowners insurance statistics (Triple-I data, June 2026)
- Insurance Business – Citizens cuts policy count to 270,000 (Sept 2026)
- Insurance Business – Florida reinsurance pricing at June 2026 renewals
- Beinsure – California insurers pledge new policies (Sept 2026)
- Maryland Insurance Administration – Consumer guide to homeowners insurance
Insurance prices, discounts and rules change often and vary by state. Figures were checked in October 2026; confirm details with the insurer or your state insurance department.