Buying a home comes with more than just a mortgage payment. Property taxes, maintenance, and homeowners insurance all contribute to your monthly expenses. And with insurance premiums rising in recent years, it's become even more important to find ways to manage those costs.
The good news? Insurance rates are still increasing, but the pace is beginning to slow. Plus, recent research shows that comparing insurance providers could help homeowners save hundreds of dollars annually.
Home Insurance Costs Are Starting To Stabilize
According to Intercontinental Exchange (ICE), homeowners insurance now accounts for approximately 9.6% of the average monthly mortgage payment.
While premiums continue to rise, the rate of increase has slowed considerably.
In mid 2024, insurance premiums jumped 4.3% in a single quarter. By the second quarter of 2026, that increase had dropped to just 1.8%, marking the slowest quarterly growth in nearly 3 years.
This doesn't necessarily mean homeowners will see their premiums decrease, but it does suggest some relief from the rapid increases experienced in previous years.
Comparing Insurance Providers Can Make a Difference
One of the easiest ways to potentially lower your insurance costs is to compare quotes from different companies.
Research from ICE found a significant difference between homeowners who stayed with their existing insurance provider and those who switched.
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Homeowners who switched providers saw their premiums decrease by an average of 6.6%.
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Homeowners who remained with their provider experienced an average increase of 10.4%.
For those who switched, the savings averaged approximately $440 per year.
Even better, those savings didn't necessarily come at the expense of coverage. On average, homeowners who changed providers saw their coverage limits increase by 7.3%, while deductibles decreased slightly by 1.4%.
The takeaway is simple: staying with the same insurer year after year may not always be the most affordable choice.
Whether you're purchasing your first home or have owned your property for years, getting multiple quotes can help you identify opportunities to save.
Your Choice of Home Can Affect Insurance Costs
The type and age of the home you purchase can also influence how much you'll pay for insurance.
According to John Burns Research and Consulting, newly constructed homes generally cost 10% to 15% less to insure than older properties nationwide.
Newer construction often includes updated electrical systems, modern building materials, and newer roofing, which may reduce certain insurance risks.
Of course, buying a newly built home isn't the right choice for everyone. But if you're comparing properties, potential insurance savings are worth considering alongside the purchase price, location, and other expenses.
Simple Ways To Keep Your Insurance Costs in Check
A little research can make a meaningful difference in your annual housing expenses.
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Compare multiple quotes. Request estimates from several insurance companies before committing to a policy.
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Review your coverage annually. Your insurance needs and available rates can change over time.
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Ask about available discounts. Bundling policies, installing security systems, or making certain home improvements may qualify you for savings.
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Consider insurance costs when buying. Factors such as the home's age, roof condition, location, and construction materials can influence premiums.
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Compare coverage, not just price. Make sure you're evaluating deductibles, coverage limits, and exclusions before switching providers.
The Bottom Line
Homeowners insurance is an important part of protecting your investment, but that doesn't mean you have to accept every premium increase without exploring your options.
With insurance rate increases beginning to slow and homeowners potentially saving around $440 annually by switching providers, taking the time to compare policies could be well worth the effort.
If you're planning to buy or sell a home, understanding all the costs involved can help you make more informed decisions. Connect with a trusted real estate professional and insurance agent to explore your options and prepare for your next move.