Summary
Home insurance costs are expected to rise by 8% in both 2026 and 2027. Factors like increased construction costs, high-risk housing stock, and population growth in disaster-prone areas contribute to this trend. Rising premiums could impact housing market stability and buyers' purchasing power.
Key Facts
- Home insurance costs are predicted to increase by 8% in 2026 and again by 8% in 2027.
- Some states have seen insurance premiums rise by 40% to 70% recently.
- Home insurance now makes up 9% of the average U.S. homeowner's costs, the highest on record.
- Higher construction and material costs, including a 10% yearly rise in aluminum, contribute to premium increases.
- 12% of U.S. housing is at high risk of disasters like wildfires and storms, with reconstruction costs of $4.3 trillion.
- Population shifts to high-risk areas, like Florida and Georgia, add pressure to insurance costs.
- Rising premiums could reduce Americans' purchasing power and affect the housing market negatively.
