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Homeowners Insurance Just Hit a Record High - Here’s the Simple Check That Could Save You $440 a Year

Homeowners insurance rates are climbing, but there's a simple way to save.

By Paige Cerulli , Edited by Melinda Sineriz, ABFP®

Updated Nov. 10, 2026

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Although property insurance has hit a new record high, there's a simple move that's helping homeowners keep more cash in their pocket. Though homeowners insurance costs may vary widely by location, Intercontinental Exchange (ICE) Mortgage Monitor data reveals that costs are continuing to increase, though the increases are beginning to slow. Higher insurance costs are one more expense homeowners must cover while high inflation drives up the price of food, gas, and other essentials.

Here's what to know about how property insurance costs might affect you and how you may be able to save on your insurance.

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The latest figures on homeowners insurance costs

According to the ICE September 2026 Mortgage Monitor report, property insurance reached a record high in the second quarter. Property insurance for the average single-family mortgage holder reached $209 per month and accounted for 9.6% of the average monthly mortgage payment. ICE reports that the figure is 80% higher than it was at the start of 2020.

However, the overall pace of insurance cost increases is slowing, signaling some relief for homeowners. Costs grew by 1.8% from the first quarter to the second quarter, the smallest quarterly increase since ICE started tracking insurance costs in 2013.

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How location impacts homeowners insurance cost

The burden of insurance varies significantly by location. In New Orleans, insurance costs account for 24.3% of the average mortgage, though in San Jose, insurance amounts to just 4.3% of the average mortgage payment.

Certain areas have seen particularly steep price increases. Greenville, South Carolina saw a 15.8% annual increase. Honolulu, Minneapolis, Sacramento, and San Diego also saw some of the highest annual increases.

Factors behind the price increases

Many of the areas that saw the fastest price increases are also in markets affected by recent hurricanes, wildfires, and hail. Severe, damaging weather may have prompted insurers to raise premiums to cover the higher risk of insuring homes in those areas.

Inflation also impacts the cost of homeowners insurance. As inflation increases, the cost of parts and labor also grows, meaning an insurer may have to pay more money to repair your home after a claim. As a result, insurers raise coverage limits and increase premiums to cover that cost. The Mortgage Monitor report found that coverage limits are up 5.5% and account for about two-thirds of the cost increase that occurred over the past year.

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The value in shopping around for homeowners insurance

The report also found that simply shopping around for insurance may help homeowners save. The data indicates that homeowners who shopped around and switched between private insurance carriers over the last year reduced their insurance payments by an average of 6.6%. That 6.6% is the largest savings from switching carriers since ICE started tracking data in 2013.

In comparison, homeowners who remained with their insurance provider experienced an average 10.4% increase in premiums. Those who switched saved approximately $440 per year, and their policies had favorable terms. Deductibles fell by an average of 1.4%, and their coverage limits increased by 7.3%.

Tips for shopping around for homeowners insurance

The report highlights the value of simply taking the time to shop around and compare home insurance quotes. Consider shopping insurance at least once a year and getting at least three quotes from different providers.

Make sure that you're comparing the same type and amount of coverage as your current policy. Verify that the deductibles are the same to ensure you're comparing prices fairly.

Consider factors beyond cost before you switch, too. For example, research each company's customer service availability and read reviews about customers' experience filing claims and receiving payments from each provider. Switching insurance companies to save money may not be worth it if you need to file a claim and the process is difficult and drawn-out.

Look for additional ways to save

As you narrow down your options, call the insurance providers you're considering and ask about additional ways you might save money. Insurers often offer discounts that may further lower your premium; ask whether you qualify for any.

For example, many insurers offer multi-policy or bundle discounts. If you insure both your home and your vehicle through the same company, you might save even more.

Also ask about discounts for features like a monitored home security system, cameras inside and outside your house, and water leak detection systems. These systems may help prevent or minimize damage to your home, reducing an insurer's risk, so some providers offer a discount if you have them.

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Bottom line

It may be difficult for homeowners to cope with rising insurance costs on top of other current expense increases. Retirees living on a fixed budget may have a particularly tough time covering these extra expenses.

Rather than letting your insurance auto-renew, use that opportunity to compare quotes annually. Doing so may help protect your home budget from rising costs each year.

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