Key facts
- US homeowners insurance costs averaged $209 per month in Q2 2026.
- Insurance costs represented 9.6% of the average monthly mortgage payment in Q2 2026.
- The 1.8% quarterly increase in insurance costs was the smallest since ICE began tracking the metric.
- Annual insurance cost increases slowed to 8.7% in Q2 2026, down from 11.4% earlier in the year.
- Higher coverage limits accounted for about two-thirds of the annual increase in insurance costs.
- Homeowners who switched insurance carriers saved an average of 6.6% on their premiums.
Homeowners insurance costs in the U.S. reached a new record high in the second quarter of 2026, averaging $209 per month, according to data from Intercontinental Exchange (ICE)’s Mortgage Monitor report released in September 2026. This figure represents 9.6% of the average monthly mortgage payment, a nearly 80% increase since the start of 2020.
The pace of these increases, however, is showing signs of slowing. The 1.8% rise from the first quarter was the smallest quarterly increase recorded since ICE began tracking the metric. Annually, insurance costs increased by 8.7%, a decrease from the 11.4% rise seen at the beginning of the year and a peak of 15.1% in late 2024.
ICE attributes about two-thirds of the annual increase to higher coverage limits, which rose 5.5%, while the cost per $1,000 of coverage increased by 3%. This contrasts with 2024, when higher pricing was the primary driver of cost growth. Significant variations exist across markets, with insurance costs making up 24.3% of mortgage payments in New Orleans compared to 4.3% in San Jose. Markets affected by natural disasters like hurricanes and wildfires, such as Greenville, South Carolina, and Honolulu, saw some of the largest annual increases.
Homeowners who switched insurance carriers over the past year experienced notable savings, reducing their payments by an average of 6.6%, the largest savings level recorded since 2013. In contrast, those who remained with their existing carriers saw premiums rise by an average of 10.4%. The savings from switching averaged $440 annually.