Homeowners insurance used to be an afterthought in the homebuying process, a line item settled in the final week before closing. In 2026 it has become one of the most consequential numbers in the entire transaction. Premiums sit near record highs, more insurers are declining to renew existing customers, and 44 percent of homeowners in a recent SoFi survey say the insurance bill now rivals their mortgage payment. At the same time, the newest data shows price growth finally cooling and competition among carriers returning.
Here is what the squeeze actually looks like in the data, and what it means whether you are buying, selling, or staying put.
What the latest data shows
Start with the headline figures. The Zebra's 2026 State of Insurance report puts the average annual homeowners premium at $2,966. Insurify's price projections report puts the 2025 average at $2,948 after a 12 percent jump that year, a cumulative rise of 46 percent since 2021. The firm projects the national average will reach roughly $3,057 by the end of 2026, and if that projection holds, premiums would sit roughly 50 percent above their 2021 level.
The National Association of Insurance Commissioners added the most authoritative view yet on July 31, 2026, when it released its first national analysis of the homeowners insurance market. The report draws on data state regulators collected from 2018 through 2024, covering roughly 103 million active policies. Its findings confirm what homeowners have been feeling: average premiums rose in every region of the country over that period, with inflation-adjusted increases ranging from 18 percent to 43 percent depending on region. These are real increases, above and beyond general inflation.
A SoFi survey of 520 homeowners conducted in April 2026, and reported by Stacker in mid-August, captures the strain in plainer terms. Forty-four percent of homeowners said their insurance premiums are now large enough to rival their mortgage payments, and 39 percent reported a premium increase of more than 20 percent at a single renewal.
Nonrenewals are the other half of the story
Price is only part of the squeeze. The NAIC analysis found that company-initiated nonrenewal rates climbed between 96 percent and 216 percent across the regions it studied from 2018 to 2024. Put simply, the share of policyholders dropped by their own insurer roughly doubled or tripled in six years, depending on where they live.
The SoFi survey echoes that finding from the consumer side: 23 percent of homeowners said they had been dropped from their homeowners insurance since 2024.
A nonrenewal is more than an inconvenience. Mortgage lenders require continuous coverage, so a dropped policy forces an owner back into the market at today's prices, often with fewer carriers willing to quote the property. That risk is now shaping how people think about their largest asset. One in four homeowners in the SoFi survey said they are very or extremely concerned their home could become unsellable because of insurance costs.
Growth is finally slowing
Here is the encouraging part of the story. Matic, a digital insurance marketplace, published its mid-year trends report on August 6, 2026, based on roughly three million quotes and policies from the first half of the year. Premiums for new policies rose 5.9 percent compared with the first half of 2025. That is down from 8.1 percent growth a year earlier, and a long way from the 18.7 percent jump recorded in the first half of 2024.
Renewal increases are easing too. Existing customers saw average renewal increases of 10.6 percent in the first half of 2026, compared with 19.4 percent in 2025 and 28 percent in 2024. Notably, a record 11.7 percent of renewing homeowners actually saw their premium decrease, up from 7.4 percent in 2025 and 4.9 percent in 2024.
Competition is returning as well. Matic found the average number of quotes available per shopper rose 27 percent from 2025 to 2026 and has improved 74 percent from its low point in 2024. After several years in which many carriers paused new business entirely, more of them are quoting again.
Moderating growth is not the same as falling prices. Premiums remain at historic highs, and a 10.6 percent renewal increase still outpaces most household budgets. But the direction has changed, and that changes the playbook: shopping your policy now has a realistic chance of paying off, which was not true two years ago.
Insurance is now a core piece of buying power
For anyone financing a home, insurance has quietly become a structural cost rather than a rounding error. Matic's report notes that insurance accounted for 14 percent of the average monthly mortgage payment in 2025, up from 10 percent in 2013, and that homeowners in 15 states now pay more for insurance than they do in property taxes.
The cumulative effect on affordability is measurable. The National Association of Realtors estimates that buying capacity is roughly 10 percent lower than it would be if insurance costs had held steady since the late 1990s, a figure cited in The MortgagePoint's coverage of the NAIC report.
Lenders feel this too. A quote that comes in higher than expected late in escrow can push a borrower's debt-to-income ratio past approval limits, forcing a scramble for cheaper coverage or a renegotiation days before closing.
What buyers should do
Get an insurance quote before you write the offer, not after. Treat the premium the way you treat the mortgage rate: a number to shop, compare, and verify early. A real quote on the specific property protects both your budget and your closing timeline.
Ask the seller for their current premium and the home's claims history. A property with prior water or fire claims can be priced very differently from a clean one, even on the same street.
Underwrite the house the way an insurer would. Roof age, electrical systems, plumbing, and proximity to hazards all drive premiums, and sometimes drive eligibility. A home that needs a roof within two years does not just carry a repair cost, it may carry an insurability problem. Factor that into what you offer.
Finally, leave room in your monthly budget. With insurance averaging 14 percent of the typical mortgage payment, a payment estimate that ignores it is not an estimate, it is a guess.
What owners and sellers should watch
If you have renewed without shopping for the past few years, this is the year to compare. With quote availability up 27 percent year over year and nearly 12 percent of renewals coming in lower, the market has more room to reward shopping than at any point since 2021.
If you plan to sell, think about insurability as part of your preparation. An aging roof, unresolved water issues, or outdated systems can shrink the pool of carriers willing to cover your buyer, and a buyer who cannot bind coverage cannot close. Addressing those items before listing protects your sale.
Also check that you are carrying enough coverage, not just cheap coverage. Matic's report warns that as many as 75 percent of U.S. homes may be underinsured relative to current rebuilding costs. After several years of construction cost inflation, a policy that was adequate in 2021 may fall well short today.
The bottom line
The homeowners insurance market is still tight, still expensive, and still dropping customers at rates far above historical norms. But for the first time in this cycle, the trend lines are bending in the consumer's favor: slower premium growth, more carriers quoting, and a meaningful share of renewals coming in lower. The households that benefit will be the ones that treat insurance as a number to actively manage, in the purchase, at every renewal, and before a sale.
