Why did my homeowners insurance go up?

Common reasons for homeowners insurance rate increases

Reasons for home insurance rate increases include:

Increased severe weather and other natural disasters. Costly natural disasters such as fires and hurricanes also have led to more expensive claims. This is partly a result of “population shifts of more people living in harm’s way of catastrophes,” says Mark Friedlander, director of corporate communications for the Insurance Information Institute (Triple-I).
An increase in the number of claims filed in your area. Even if you didn't file any claims, an increase in the number of claims filed nearby indicates an increase in risk.
Rising construction costs, including labor and materials. Inflation is playing a significant role in increasing homeowners insurance costs. The cost of building, maintaining, repairing, and remodeling homes has increased significantly. This means that insurers often have to pay out more to settle claims than they did in the past.
Changes in your personal risk profile. Your rates may be climbing because of your insurance profile, such as the number of claims you have recently filed, or your credit (in most states).
Litigation. When insurers have to deal with a lot of lawsuits, court costs are passed on to consumers in rate increases.
Insurance fraud. Insurance claim fraud is another factor driving rates higher, according to the Insurance Information Institute, with fraud losses driving rate increases.

While many of these are outside of your control, you can lower your rates by controlling those you can, such as avoiding small claims and maintaining a good credit history.

How much should homeowners insurance increase each year?

There is no set amount that homeowners insurance costs “should” increase each year; however, rates increased nationwide by an average of in 2.5% in 2019, 3.0% in 2020, and 3,8% in 2021, according to S&P Global [2025]. At 6.3%, 2023 was the last year with a single-digit increase. 2019-2021 reflect a more standard rate of increase.

Factors such as higher costs to repair and replace homes can cause a ripple effect that causes rates to climb nationwide. On the other hand, individual factors—such as filing many claims in a short period—can also cause rates to climb.

The bottom line is that insurers will adjust their rates to compensate for the risk of loss and to ensure the company stays in the black.

Will homeowners insurance continue to increase in 2026?

Yes, homeowners insurance rates will likely increase into 2026, because rate increases that have been approved by state regulators are still rolling out to consumers.

That said, in some areas, insurance companies have actually filed for rate decreases, including State Farm in Florida.

“Insurers assess numerous rating factors when determining the cost of home insurance,” Friedlander says.

Still, nobody can say precisely how much rates will have increased by the time the year is over. And, of course, even if you could pin down a number that represents an “average” increase, that doesn’t mean you should expect that number to apply to your situation.

Friedlander says factors that might impact how much you pay as an individual include your home’s age, location and square footage.

The home’s proximity to a fire station and fire hydrants also can play a role, as does your credit record and claim history.

“Natural disaster risks in your area also play a role in the cost of your policy,” Friedlander says.

Additionally, your policy deductible is a factor.

“A lower deductible means you will pay more in premium versus choosing a higher deductible,” Friedlander says.

Why is homeowners insurance so expensive?

Homeowners insurance is expensive because insurance companies must protect themselves against the higher cost of claims today. With a sharp increase in reconstruction costs over the past 10 years, up 63.7% according to Verisk, insurance companies must take in more premiums to cover claims.

In addition, more Americans are moving into areas with high risk of climate disasters, such as the Southeast and Southwest, Friedlander says.

“Losses related to natural disasters have increased tenfold from the 1980s to the 2020s,” he says. “Disaster losses along coastal areas are likely to escalate in the coming years, in part because of significant increases in building and development.”

Finally, what Friedlander characterizes as “legal system abuse”, moving to sue rather than negotiating, is pushing prices higher.

“Billboard attorneys are aggressively marketing their services to consumers to ‘sue first’ when trying to settle a claim versus traditional methods,” he says. “More litigated claims raise insurance costs for all homeowners.”

Is it normal for homeowners insurance to go up?

Yes, rate increases are normal and expected, as costs generally increase every year. However, increases are usually much lower, around two to five percent, rather than the double-digit increases seen in recent years.

In a time of high inflation—as we are seeing now—homeowners insurance rates should rise even more. Many companies monitor the Consumer Price Index and may base their rates on the direction of prices throughout the economy.

Rates can also change from year to year due to claims you have filed, changes you make on your property, an increase in storm activity and more. In some cases, rates may even go down; for example, if you have installed a new roof.

Does homeowners insurance go up after a claim?

Not always. Not every claim will cause homeowners insurance rates to climb. Generally, claims that you could not have avoided, such as weather damage, won't increase your rates. However, if many people in your area file claims for the same storm, the insurer may institute a blanket increase in that area as a result of increased risk.

While you often won't see an increase after a single claim, if you file multiple claims in a short period of time, generally within three years, rates will likely go up.

Also, if you file a claim, your costs are almost certain to rise if you previously were getting a discount for being claim-free. Once you file the claim, you will no longer be claim-free, and you should expect to lose that discount.

What can you do about home insurance rate increases?

While you can't prevent blanket rate increases, there are several things you can do to lower your home insurance rate:

Don't file small claims. Multiple small claims over time can increase your rate, costing you more in the end than paying for repairs out of pocket.
Make your home more insurable. Upgrades like a new roof can drop your home insurance rates dramatically. In high-risk areas, mitigation efforts can save you money; for example, wildfire mitigation in California and windstorm mitigation in Florida.
Ask about discounts. There are many home insurance discounts available, and you may not get all of them if you don't ask. Find out what your insurer offers and what you might qualify for.
Raise your deductible. A higher deductible translates to lower rates. Choose the highest one you can afford.
Shop around. Not every insurance company views the risks surrounding your home the same way. Compare quotes annually to find a better deal.