Home Insurance Costs Are Still Rising, But There's Some Good News
When you're buying a home or thinking about making a move, it's easy to focus on the mortgage payment, down payment, and interest rate. But there's another monthly expense worth keeping an eye on: homeowners insurance.
Insurance costs have been climbing, and they're now making up about 9.6% of the average monthly mortgage payment, according to Intercontinental Exchange (ICE).
The good news? Recent data shows those increases are starting to slow down. That doesn't mean insurance is getting cheaper across the board, but it does mean the pace of rising costs has eased compared to a couple of years ago.
Here's what homeowners and buyers should know.
Insurance Increases Are Finally Slowing Down
Home insurance premiums were rising pretty quickly in 2024. At one point, they jumped 4.3% in a single quarter. By the second quarter of 2026, that increase had slowed to 1.8%, the smallest quarterly gain in nearly three years.
That's encouraging news for homeowners who have been feeling the pressure of higher monthly expenses.
As Andy Walden, Head of Mortgage and Housing Market Research at ICE, explains, property insurance has become a growing part of monthly housing costs, but the latest numbers show that the pace of those increases is finally slowing.
Your premium may still increase over time, but hopefully not at the same pace we've seen recently.
Shopping Around Could Save You Money
Here's something homeowners shouldn't overlook: you don't necessarily have to stick with the same insurance company year after year.
ICE found that homeowners who switched insurance providers after shopping around saw their premiums decrease by an average of 6.6%. Those who stayed with their existing provider saw an average increase of 10.4%.
That's a pretty significant difference.
For homeowners who made the switch, it worked out to roughly $440 in annual savings on average. Even better, those savings didn't come at the expense of coverage.
If you're buying a home, make sure you compare insurance quotes from multiple providers before settling on a policy. And if you already own a home, reviewing your coverage each year before renewal is a smart habit.
Sometimes a little comparison shopping can make a real difference in your monthly budget.
The Type of Home You Buy Can Make a Difference
Another factor worth considering is the age of the home.
According to John Burns Research and Consulting, newly built homes are generally 10% to 15% less expensive to insure than older homes nationally.
Newer construction may offer updated materials, systems, and features that can make a difference when insurance companies calculate premiums.
Of course, a new construction home isn't the right choice for everyone. But if you're comparing different properties, insurance costs are worth including in the conversation. The purchase price is only one part of what it takes to own a home comfortably.
The Bottom Line
Homeownership comes with plenty of expenses, and insurance is one that deserves a little extra attention. While costs are still rising, the slower pace is encouraging, and homeowners have more options than they may realize when it comes to managing their premiums.
Whether you're buying your first home, moving into something new, or staying right where you are, take time to compare coverage, review your policy, and understand the full cost of owning a home.
And if a move is on your radar, let's make sure you're looking at the whole picture, not just the mortgage payment.
Thinking about buying or selling around Lake Norman? Let's talk. I'm always happy to help you make sense of the numbers and figure out your next move.
