With U.S. homeowners already paying higher insurance premiums in 2025, the average cost of household goods spiked again in January.
The Bureau of Labor Statistics reported on Wednesday Feb. 12, that the Consumer Price Index (CPI) increased 3% over the prior year in January, with the index for meats, poultry, fish and eggs rising 1.9% over the month, driven by a 15.2% spike in the cost of eggs.
At the same time, U.S. homeowners now pay 17.4% more for new insurance policies, while the average homeowner who bought their policy in 2021 paid nearly 69% more at their 2024 renewal, or an extra $865 annually.
In 2025, the national average cost of home insurance for a policy with a $300,000 dwelling limit is about $2,304 per year, or roughly $192 per month, with details like location, age and square footage, deductibles, policy limits and the cost of building materials factored into the cost.
Meanwhile, a recent Nationwide survey showed 51% of homeowners completed major renovation projects within the past two years. Nationwide said many homeowners did not update their insurance plans.
Top do-it-yourself projects, according to Nationwide:
- Basement renovations and front door replacements comprise 43% and 41% of the surveyed homeowners, respectively.
- Bathroom remodels account for 39% of surveyed responses, while kitchen redo’s make up 38%.
- Thirty-six percent of surveyed homeowners said a full-home remodel or "gut" renovation.
- Thirty-five percent of surveyed homeowners said additions like extra rooms and separate garages.
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