Home Insurance Costs Hit 9.6% of Monthly Mortgage Payments
Homeowners pay a record $209 monthly for insurance, now consuming nearly 10% of typical mortgage obligations.
Home insurance premiums have reached a record high of $209 per month. This amount represents 9.6% of the average monthly mortgage payment. The data was released by ICE Mortgage Technology on Friday. These figures cover the period ending in June. The annual cost now stands at $2,508. This is a significant increase from $2,370 in the prior year. The premium level is 80% higher than levels seen in early 2020. The market has faced ongoing instability in property insurance pricing.
Growth pace slows after rapid increases
The rate of premium increases has decelerated. Annual growth over the last twelve months was 8.7%. This is lower than the 11.4% growth rate at the start of 2026. The peak annual growth reached 15.1% at the end of 2024. Quarterly growth for the most recent period was 1.8%. This is slightly below the 1.9% increase in the first quarter. The slowdown aligns with data from digital brokerage Matic. Matic reported new policy prices rose 6% in the first half of 2026. This is down from 8.1% growth a year earlier.
Policy switching yields significant savings
Renewing existing policies costs more than switching carriers. Renewal rates averaged 10.6% for the first half of 2026. New underwrites saw a 5.9% increase. ICE data confirms this trend for June. Premium renewals grew by 10.4% year-over-year. Switching carriers resulted in 6.6% average savings. About 11% of mortgage borrowers changed providers in the last year. ICE states this is the highest saving benefit recorded since 2014. The data indicates that staying with a current insurer is increasingly expensive.
Regional premium increases vary widely
Insurance cost hikes are concentrated in specific regions. The inland Southeast faces high premiums after Hurricane Helene. Upper Midwestern markets see rises due to hail damage. Hawaii and California also report notable increases. Greenville, S.C., led major markets with a 15.8% jump. Honolulu followed with a 14.7% increase. Columbia, S.C., Minneapolis, and Augusta, Ga., all saw gains near 13%. Florida and the Gulf Coast saw the smallest increases. The Texas border and Southwest also recorded lower growth. These regional patterns reflect local risk factors and market stability.
