Rising insurance costs shape homeowner decisions in 2026

"The average U.S. home insurance premium increased 24% between 2021 and 2024, according to the Consumer Federation of America outpacing inflation by 11% over the same period. Looking ahead, 82% of homeowners expect their premiums to rise in 2026. Most anticipate modest increases: 43% expect hikes of 1% to 5%. Another 29% expect increases of 6% to 10%, while 16% expect premiums to rise by more than 10%, the report said."

"Insurance costs are increasingly shaping homebuying behavior. Nearly half of homeowners 49% say the cost of home insurance weighs very heavily or seriously on their purchasing decisions. Concern about coverage adequacy is also growing. Nearly one in three homeowners 31% say they are not confident they will be able to maintain adequate home insurance coverage through 2026. Nineteen percent plan to switch insurance providers in the coming year."

"Climate-related risk underpins many of these concerns. Nearly all homeowners surveyed 93% expect climate-driven extreme weather to damage their homes within the next three years. More than two-thirds 68% expect extreme weather events in their area to increase in frequency in 2026 compared with last year. Climate risk is also affecting where homeowners are willing to live. Florida and California top the list of states homeowners say they would avoid moving to because of extreme weather exposure, cited by 58% and 52% of respondents, respectively."

Average U.S. home insurance premiums rose 24% from 2021 to 2024, outpacing inflation by 11%. Eighty-two percent of homeowners expect premiums to rise in 2026, with 43% expecting 1–5% increases, 29% expecting 6–10%, and 16% expecting rises over 10%. Insurance costs influence purchasing decisions for 49% of homeowners, and 31% lack confidence in maintaining adequate coverage through 2026. Nineteen percent plan to switch providers within a year. Climate-driven extreme weather is widely anticipated: 93% expect home damage within three years and 68% foresee increased frequency in 2026. Nearly half of homeowners are considering a move in 2026, typically local relocations.

Read at www.housingwire.com