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Home Insurance Just Hit a Record High - Here’s How Much the Average Homeowner Is Paying

Home insurance costs have jumped nearly 80% since early 2020.

By Jordan Major , Edited by Melinda Sineriz, ABFP®

Updated Nov. 10, 2026

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Homeowners have another expense eating into their budgets, even if they locked in a low mortgage rate years ago.

The average homeowner with a single-family mortgage is now paying a record $209 a month for property insurance, according to new data from Intercontinental Exchange (ICE). That's about $2,500 a year and nearly 80% more than homeowners were paying at the beginning of 2020, making it another reason to protect your home budget.

Here's how your bill compares and why where you live could make such a big difference.

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The average homeowner is now paying $209 a month

Property insurance costs reached a record high in the second quarter of 2026, according to ICE's September Mortgage Monitor Report.

At $209 a month, the typical single-family mortgage holder is spending about $2,508 a year on insurance. That's up 8.7% from a year earlier.

Insurance now accounts for 9.6% of the average monthly mortgage payment. In other words, nearly $1 out of every $10 the typical borrower pays toward their mortgage each month is going toward property insurance.

There's at least some encouraging news. Costs rose 1.8% during the second quarter, the smallest quarterly increase since ICE began tracking the figure. Annual growth has also slowed from 11.4% at the start of 2026 and a peak of 15.1% at the end of 2024.

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Home insurance costs are nearly 80% higher than in 2020

Part of that increase comes from homeowners carrying more insurance, rather than insurers simply charging more for the same amount of coverage.

Coverage limits rose 5.5% over the past year and accounted for roughly two-thirds of the annual increase, while the cost per $1,000 of coverage climbed about 3%.

So if your premium has jumped, check whether your dwelling coverage increased too instead of looking at the premium alone.

Where you live could make a huge difference

Your own premium may look nothing like the $209 national average, especially in markets where insurers face much higher weather and rebuilding risks. ICE found that property insurance accounts for 24.3% of the average mortgage payment in New Orleans. In San Jose, California, it's just 4.3%.

Some cities have also experienced much sharper increases than the national average. Greenville, South Carolina, saw insurance costs rise 15.8% over the past year, while Honolulu experienced a 14.7% increase. Minneapolis wasn't far behind at 13.1%.

Recent natural disasters are one reason some areas have experienced particularly large increases. Insurers continually reassess the risks they face from hurricanes, wildfires, severe storms, and other events, which could eventually show up in homeowners' premiums.

That means comparing your renewal with the $209 national average only tells you so much. What homeowners with similar properties in your area are paying may be a much more useful benchmark.

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Your insurance increase may raise your mortgage payment

A higher insurance premium could also come as an unwelcome surprise to homeowners with fixed-rate mortgages.

Your mortgage's principal and interest payment may be fixed, but property taxes and homeowners insurance aren't. If your lender collects insurance through an escrow account, a higher premium might result in a larger monthly mortgage payment.

If your annual premium rises from $2,000 to $2,600, your escrow account needs another $600, or about $50 a month.

Checking your escrow statement could help you determine whether a recent mortgage-payment increase came from homeowners insurance, property taxes, or both.

Compare your renewal with more than last year's premium

Start by checking how much your premium increased in percentage terms. The national annual increase was 8.7%, according to ICE, although local increases might be considerably higher or lower.

Next, compare your coverage limits and deductible with last year's policy. A higher premium accompanied by significantly more dwelling coverage isn't the same as paying more for identical coverage. Then get quotes using similar coverage limits and deductibles, so you're comparing like with like.

Shopping around could still lower your bill

If your comparison suggests your renewal is expensive, getting quotes from other insurers could show whether you're paying more than necessary.

Homeowners who switched private insurers cut their premiums by an average of 6.6% over the past year, the largest savings from switching since ICE began tracking the data in 2013. Those who stayed saw an average 10.4% increase.

"Those who switched carriers cut their premiums by a record 6.6%, while also securing lower deductibles and more coverage than those who stayed put," said Andy Walden, Head of Mortgage and Housing Market Research at ICE.

Switchers saved about $440 a year while ending up with 1.4% lower deductibles and 7.3% higher coverage limits. Your results will vary, so compare similar coverage and deductibles.

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Bottom line

The average single-family homeowner with a mortgage is now paying a record $209 a month, or roughly $2,500 a year, for property insurance. That's nearly 80% more than at the beginning of 2020, although the pace of increases has finally started to slow.

Your own premium could vary dramatically depending on where you live and how much coverage you need. If your renewal has jumped again, compare the new premium, coverage limits, and deductible with your current policy, then price the same coverage elsewhere as a way to save money on bills.

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