US Home Insurance Premiums Set to Rise a Fifth Straight Year

US homeowners are facing another year of rising insurance costs, with average annual premiums projected to increase about 4% in 2026 to roughly $3,057, according to analysis from insurance comparison site Insurify. That would mark a fifth straight year of increases, though the pace has cooled sharply from the roughly 12% jump recorded in 2025. Since 2021, premiums have climbed about 46%, roughly three times the rate of inflation. The pressure stems largely from severe convective storms, which spawn tornadoes, hail and damaging winds and have driven insured losses above $42 billion for three consecutive years, well above the long-run average. Relief is uneven across the country: the steepest projected increases are in California, following the Los Angeles wildfires, along with Nebraska, New Mexico and Georgia, while a handful of states including Hawaii, Massachusetts and Maine may see small declines. Florida remains the most expensive state, with average premiums approaching $8,500. Falling reinsurance costs, which dropped again at mid-year renewals, should gradually ease pressure, but many households are already making financial sacrifices to keep coverage, and some say they would drop it entirely if they could.