Home insurance premiums climbed in nearly every corner of the country in 2025, according to a report the insurance-comparison company Insurify published in March 2026. Prices rose in 45 states and Washington, D.C., while only five states saw rates hold level or move lower. For a typical household, that increase rarely arrives as its own bill; it shows up folded into a mortgage payment, a renewal notice, or a state-mandated policy review. The scale of the increase, and where it lands hardest, help explain why home insurance has become one of the fastest-growing costs of owning a house.
A Fourth Straight Year of Increases Reaches Nearly Every State
Insurify’s 2026 Insuring the American Homeowner report, published in March 2026, found that the average cost of a home insurance policy rose 12 percent nationally in 2025, pushing the countrywide average to $2,948 by the end of the year. Only five states held their average premiums level or saw them fall; every other state, along with Washington, D.C., moved higher. The increase was not a one-year event: Insurify calculated that the average homeowner now pays $900 more per year for coverage than in 2021, a cumulative rise of 46 percent over four years, nearly three times the pace of general inflation over the same stretch. Rebuilding costs, reinsurance prices, and a run of costly weather events all fed into that trajectory, according to the report.
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The States Driving the Steepest Increases
The size of the increase varied sharply by state. Minnesota’s average premium rose 34 percent in 2025, to $3,530, and Colorado’s rose 33 percent, to $3,996, according to Insurify’s full 2026 report. Nebraska climbed 25 percent to $4,028, and Oklahoma rose 24 percent to $4,962, putting both among the highest average premiums in the country outside the coastal hurricane states. Insurify tied much of that Midwest and Great Plains increase to severe convective storms, the hail- and wind-producing systems that, for a third consecutive year, cost insurers more than $50 billion nationally. Iowa’s average premium rose 28 percent in 2025 alone and has climbed 54 percent over the past two years, the report noted, putting the state on pace to join the list of above-average markets if the trend continues.
Florida’s Premium Still Runs Nearly Triple the National Average
Florida remained the most expensive state for home insurance in 2025, with a typical annual premium of $8,292, close to three times the national average, after rates there rose another 18 percent during the year, Insurify found. California and Florida also rank as the two states with the greatest disaster exposure under the screening tools behind FEMA’s Resilience Analysis and Planning Tool, a distinction insurers in both states cite when defending elevated premiums. Florida’s own regulators track the resulting claims activity through the Office of Insurance Regulation’s catastrophe reporting, as insurers have returned to the state following tort-law changes enacted between 2021 and 2023. Citizens Property Insurance, the state-backed insurer of last resort, has shed policyholders as private carriers absorbed more business, falling from more than 1 million policyholders in late 2023 to about 400,000 by 2025. Even with that stabilization, the underlying cost of coverage in hurricane-exposed counties keeps Florida’s premiums the highest in the nation.
How a Premium Increase Reaches a Household’s Mortgage Payment
Most homeowners with a mortgage do not pay a home insurance bill directly; the premium is collected through an escrow account and bundled into the monthly mortgage payment. As the Consumer Financial Protection Bureau explains, property taxes and insurance premiums can change from year to year, and the escrow portion of a monthly payment changes along with them. A household whose insurer raised rates in line with the 12 percent national average in 2025 would see that increase folded into a higher total mortgage payment at the next annual escrow review, often without a notice that singles out the insurance line specifically. Homeowners who waive escrow and pay their own insurance bill face the same increase directly, in one annual or semiannual payment rather than smaller monthly installments.
Insurify’s 2026 Number Is a Projection, Not a Filed Rate
The $3,057 figure attached to 2026 is Insurify’s own projection, not a rate any regulator has approved or any insurer has filed. The company built the estimate by studying the historical relationship between a state’s home insurance loss ratios, drawn from data the National Association of Insurance Commissioners compiles from insurer filings, and how rates moved afterward, then applied that pattern to project a further 4 percent increase nationally by the end of 2026. California is projected to climb fastest under that model, an average of 16 percent for the year, while the gap between expensive and inexpensive states keeps widening: premiums rose 14 percent, on average, across the 25 most expensive states in 2025, compared with 5 percent across the 25 least expensive states. None of the 2026 figures are settled; they describe where Insurify’s model expects rates to land, not a rate that has cleared a state insurance department.
This article was produced with AI assistance and reviewed by a human editor. Figures are linked to their primary sources; where a claim could not be verified from the public record, we say so.
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