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You are not imagining it. A Pew Research Center survey in 2026 found that 71% of U.S. homeowners say their home insurance costs have gone up in recent years, and 42% say they have gone up a lot. The average national premium is projected to reach about $3,057 in 2026, up roughly 4% from 2025 and around 24% higher than in 2021, according to Insurify. If your renewal came in higher than expected, here is why, and what you can actually do about it. These are national averages, so your own number depends heavily on where you live and your home.
Key Takeaways
- Most homeowners are seeing increases, driven by weather losses, rebuild costs, and reinsurance prices.
- The increase is mostly market-wide, not something you did, though credit and claims history can add to it.
- Shopping around is the highest-impact move, since the same coverage can vary widely between insurers.
- Do not cut coverage to save money, since underinsuring can cost far more in a claim.
The 5 Real Reasons Premiums Are Rising
Reason 1: Climate risk repricing
Insurers absorbed heavy losses from catastrophic weather in 2024 and 2025. The Los Angeles wildfires were the single costliest event, with around $40 billion in insured losses, and total 2025 insured catastrophe losses reached roughly $107 billion across wildfires and severe storms. Companies now price policies on forward-looking risk rather than historical averages, so a home in or near a wildfire zone, flood plain, hurricane corridor, or hail belt sees that risk reflected directly. Reported state increases vary, with high-risk states like California seeing some of the largest, while even lower-risk areas rise as insurers spread losses across the market.
Reason 2: Construction costs remain elevated
Replacement cost coverage pays to rebuild your home, and labor and materials still cost much more than before the pandemic despite some cooling. Lumber, concrete, roofing, and skilled labor all run higher than older insurer models assumed, so coverage limits and premiums adjusted to reflect real rebuild costs.
Reason 3: Reinsurance costs passed through to you
Insurers buy their own coverage, called reinsurance, and those prices jumped after several heavy-loss years. Higher reinsurance costs flow straight into retail premiums, so you are partly paying for losses that happened in other states and countries.
Reason 4: More homes are in flood zones
FEMA has updated its flood maps in recent years, and homes that were not previously in designated flood zones are now mapped into them. If yours was newly added, your lender may require flood insurance you did not carry before, adding to your total cost.
Reason 5: Your credit or claims history changed
In most states, insurers use credit-based insurance scores, so a drop in your credit can raise your premium at renewal. Filing one or more claims in the past few years also raises your risk profile, and claims can even follow you from a previous home.
What You Can Do Right Now
Shop competing quotes
The same coverage can vary significantly between insurers. Get quotes from at least three or four companies before your renewal date, using an independent agent who can access multiple carriers or a comparison site. Loyalty discounts rarely offset what you save by shopping.
Raise your deductible
Moving from a $1,000 to a $2,500 deductible often saves around 10% to 15%, but only do it if you have the savings to cover the higher deductible in a claim. On a $3,057 premium, a 12% savings is about $367 a year.
Document mitigation improvements
Roof age is one of the biggest factors, and a newer roof can cut premiums meaningfully in some markets. Storm shutters, impact-resistant windows, a security system, smoke detectors, and defensible landscaping in wildfire areas can all qualify for discounts. Ask your insurer specifically which improvements would lower your premium.
Bundle with auto insurance
Bundling home and auto with one insurer often saves around 10% to 15% on both. If yours are with different companies, the bundle savings may beat any current loyalty discount.
Review your coverage, but do not underinsure
Do not cut coverage to save money unless your limits were genuinely excessive. Saving $200 a year and then facing a large uncovered gap in a claim is a bad trade. Instead, check whether you are paying for endorsements you no longer need, like coverage for items you no longer own. For a step-by-step renewal walkthrough, see our guide to handling your homeowners insurance renewal.
FAQ
Why did my premium go up if I had no claims?
Premiums rise market-wide because of weather losses, higher rebuild costs, and reinsurance prices, so even claim-free homeowners see increases. It is largely not personal.
How much can I save by shopping around?
Often a meaningful amount, since the same coverage can vary widely between insurers. Comparing at least three or four quotes for identical coverage is the most reliable way to find a better rate.
Will raising my deductible really lower my premium?
Usually yes, often by around 10% to 15%, but only raise it if you can comfortably cover the higher deductible when you file a claim.
Should I drop coverage to save money?
Be careful. Cutting limits can save a little now and cost a lot later. Lower the price through shopping, bundling, deductibles, and discounts instead.
Bottom Line
Most of the 2026 increase is market-wide and out of your control, but how you respond is not. Shop several quotes for the same coverage, raise a deductible you can afford, claim every mitigation discount, and bundle where it helps, all while keeping your coverage adequate. The worst move is underinsuring to save a little, since that is exactly what turns a bad year into a financial disaster. Budgeting for this rising cost helps too, as in our guide to the 50/30/20 rule, and you are far from alone in feeling the squeeze.
This article is for educational and informational purposes only and is not insurance or financial advice. Premiums, coverage, and discounts vary widely by insurer, state, and individual circumstances, and figures are national averages that change over time. Confirm details with a licensed insurer or agent before making changes.
