--- title: Average Home Insurance Premiums Expected to Surpass $3,000 This Year description: 'This is the fifth consecutive year of home insurance price hikes: Since 2021, costs have increased by 46%.' authors: - name: Leslie Cook role: Editor, Real Estate url: https://money.com/author/leslie-cook/ bio: Leslie Cook is Money’s lead real estate editor covering trends in the housing market, mortgage rates and real estate. She also writes about home renovation trends and tips. education: Bryn Mawr College, BA History at_money_since: 2019 articles: 797 covers: - Insurance - Banking - Credit - Economy and Politics - Housing - Identity Theft - Loans - Mortgages - Personal Finance - Professional Services - Retirement - Taxes social: - https://twitter.com/LeslieLCook - https://www.linkedin.com/in/leslie-cook-9829b9198/ editors: - name: Katherine Peach role: Associate Editor url: https://money.com/author/katherine-peach/ bio: Katherine Peach is an associate editor with a focus on news and email at Money. She didn’t always intend to write about money. She’s a classically trained pianist who dreamed of becoming an archaeologist. However, in 2007 Katherine began working in financial publishing as an editor for Agora Inc. (Apparently, unearthing ideas about improving your personal finances isn’t such a bad career alternative!) Katherine’s writing and editing work has been featured in Investing Daily, Clever, Investor Junkie, The Palm Beach Letter, Truth & Plenty, Independence Monthly, NICHE, AmericanStyle, AntiqueWeek, Millennial Money, Money Done Right, TheStreet, Sure Dividend and many others. Katherine holds a Bachelor of Arts in Ancient Studies with concentrations in Archaeology and Ancient Languages and a minor in Literature from the University of Maryland, Baltimore County. She is a member of Phi Beta Kappa. education: University of Maryland, Baltimore County at_money_since: 2025 articles: 14 covers: - Insurance - Banking - Career Advice - Credit - Credit Cards - Debt - Economy and Politics - Education - Federal Reserve Rate Cuts - Health and Wellness - Housing - Identity Theft - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Professional Services - Retirement - Shopping - Taxes published: '2026-03-27T17:56:00.000Z' modified: '2026-03-27T17:56:00.000Z' section: Insurance tags: - News word_count: 698 canonical: https://money.com/home-insurance-price-hikes-3000-dollars/ type: NewsArticle source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![Photo-illustration of a house getting punched](https://img.money.com/2026/03/News-Homeowners-Insurance-Cost-Surpass-3000.jpg) If you're already struggling with the high cost of homeowners insurance, we've got bad news: Premiums are set to climb even higher this year. A new [report](https://insurify.com/homeowners-insurance/report/home-insurance-price-projections/) from insurance marketplace Insurify projects that homeowners will see a 4% increase in premiums by the end of 2026, bringing the average annual cost from $2,948 to $3,057 — with some states seeing even larger jumps. This is the fifth consecutive year of premium hikes: Since 2021, [insurance costs have increased](https://money.com/cost-homeowners-insurance-broke-record/) by 46%, three times faster than inflation during the same period. Matt Brannon, senior economic analyst at Insurify, says the key reasons for the rapid rise are the increased intensity and frequency of extreme weather events, as well as higher home-building costs. "Severe storms, which bring strong winds, hail and even tornadoes, are causing more destruction than in years past," Brannon tells Money in an email. "These events are driving up insurer losses, and they often respond by seeking higher premiums." Extreme weather has caused nearly [$3 trillion in damages](https://www.ncei.noaa.gov/access/billions/#:~:text=The%20U.S.%20sustained%20403%20weather,403%20events%20exceeds%20$2.915%20trillion.) across the United States since 1980, with most of the losses resulting from flooding, windstorms, heavy snow, tornadoes and wildfires. According to Brannon, the costs related to weather events in the U.S. now average about $150 billion annually, more than double the $63 billion incurred just 10 years ago. In 2025, fires in Los Angeles County alone led to $62 billion in insured losses. But higher premiums are just one aspect of how homeowners insurance costs are changing. In the report, Insurify points out that insurers operating in states with an increased risk of severe weather often structure their policies so that homeowners bear a greater share of repair costs. In states where tropical storms and hurricanes are common, for example, insurance providers may impose a deductible equal to 5% of a policy's coverage amount, resulting in thousands of dollars in out-of-pocket homeowner expenses. More than half the premiums in Colorado are earmarked for potential hail damage, while homeowners in "Tornado Alley" — a section of the U.S., usually in the Southern Plains, where there is a high risk of tornadoes forming — may be required to pay a percentage of their policy's coverage as a separate wind or hail deductible. States that are at high risk of experiencing a damaging storm, regardless of whether it's caused by wind, rain or fire, are also the most likely to have the highest premiums already. Those higher premiums aren't limited to states that have experienced a significant storm, either. Every time a major disaster hits, insurance costs also rise in [states not directly impacted by the event](https://money.com/california-fires-home-insurance-prices/). As coverage costs continue to skyrocket, many homeowners are looking for ways to save. Some will seek to lower expenses by [increasing their deductibles](https://money.com/home-insurance-deductible-increase-save-money/). Some make the even riskier choice of [skipping insurance coverage](https://money.com/homeowners-skip-insurance-costs-soar/), if circumstances permit. All mortgage lenders, for example, require homeowners insurance in order to approve the loan, so dropping coverage is not an option for those who don't own their property outright. Homeowners associations and condo bylaws also typically require home insurance. On the bright side, Brannon says, insurance providers often offer discounts to homeowners who take steps to minimize their home's risk exposure, such as making weather-resistant upgrades. Insurers will also offer lower rates for signing up for automatic payment and paperless billing, or for bundling several policies together. ## States where homeowners insurance premiums are projected to rise the most in 2026 The increasing severity of severe weather and the rising cost of repairing or replacing damaged properties are likely to cause more economic pain for American homeowners this year. Insurance premiums are expected to increase once again, with these states seeing the largest hikes: 1. **California**: 16% increase (+$388 on average) 2. **Nebraska**: 13% increase (+$532) 3. **New Mexico**: 11% increase (+$246) 4. **Georgia**: 10% increase (+$288) 5. **South Carolina**: 9% increase (+$278) 6. **Arkansas**: 7% increase (+$216) 7. **Missouri**: 7% increase (+$209) 8. **Oregon**: 6% increase (+$86) 9. **Oklahoma**: 5% increase (+$243) 10. **Illinois**: 5% increase (+$179) ## Need to insure your home or looking to lower your rate? ### Click below to see if you can save. [View Rates](https://money.com/pr/ia3e9fbe72f1?ap_referrer=%2Fhome-insurance-price-hikes-3000-dollars%2F&url=%2Fhome-insurance%2Flp%2Fhome-insurance-survey-publisher-premium) ![](https://s3.consumersadvocate.org/prd/image/image/12792/medium_fd9d54bc-1ff5-46ab-98d0-0c42e163a770.png) Find the Home Insurance policy that meets your needs [View Rates](https://money.com/pr/sd5a4f127f27?ap_referrer=%2Fhome-insurance-price-hikes-3000-dollars%2F) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "BreadcrumbList", "@id": "https://money.com/home-insurance-price-hikes-3000-dollars/#breadcrumb", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://money.com" }, { "@type": "ListItem", "position": 2, "name": "Insurance", "item": "https://money.com/insurance/" }, { "@type": "ListItem", "position": 3, "name": "Homeowners Insurance", "item": "https://money.com/homeowners-insurance/" }, { "@type": "ListItem", "position": 4, "name": "Average Home Insurance Premiums Expected to Surpass $3,000 This Year" } ] }, { "@type": "WebSite", "@id": "https://money.com/#website", "url": "https://money.com", "name": "Money", "publisher": { "@id": "https://money.com/#organization" } }, { "@type": "WebPage", "@id": "https://money.com/home-insurance-price-hikes-3000-dollars/#webpage", "url": "https://money.com/home-insurance-price-hikes-3000-dollars/", "name": "Average Home Insurance Premiums Expected to Surpass $3,000 This Year", "isPartOf": { "@id": "https://money.com/#website" }, "datePublished": "2026-03-27T17:56:00.000Z", "mainEntity": { "@id": "https://money.com/home-insurance-price-hikes-3000-dollars/" }, "inLanguage": "en-US", "breadcrumb": { "@id": "https://money.com/home-insurance-price-hikes-3000-dollars/#breadcrumb" }, "dateModified": "2026-03-27T17:56:00.000Z" }, { "@type": "NewsArticle", "headline": "Average Home Insurance Premiums Expected to Surpass $3,000 This Year", "articleSection": "Insurance", "image": [ { "@type": "ImageObject", "url": "https://img.money.com/2026/03/News-Homeowners-Insurance-Cost-Surpass-3000.jpg", "width": 2880, "height": 1920, "caption": "News-Homeowners-Insurance-Cost-Surpass-3000" } ], "author": [ { "@type": "Person", "name": "Leslie Cook", "url": "https://money.com/author/leslie-cook/", "@id": "https://money.com/author/leslie-cook/#author", "description": "Leslie Cook is Money’s lead real estate editor covering trends in the housing market, mortgage rates and real estate. 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