The average U.S. homeowner now pays $2,966 annually for insurance coverage, according to The Zebra's 2026 State of Insurance report — an increase of $164 from 2025's average. Rising construction costs, higher labor expenses and growing exposure to severe weather events are among the factors driving these costs upward year after year.
Seventy-four percent of homeowners surveyed for The Zebra's report said their insurance premiums represent a meaningful portion of their housing budget, and nearly half reported that additional rate increases could jeopardize their ability to afford their mortgage payments. This demonstrates how closely linked insurance affordability and broader housing market dynamics are.
Consumer behavior is evolving in response. First-time homebuyers, in particular, are demonstrating greater engagement with the insurance purchasing process. They are more likely to compare quotes, shop online, understand policy details and review coverage options before closing on a home.
Property characteristics also continue to influence rates. Newer homes generally enjoy lower insurance costs than older properties because of improved construction standards and lower expected repair costs. However, homeowners should expect premiums to increase gradually as properties age and replacement costs rise.
With rates expected to continue climbing in many markets throughout 2026, insurers face increasing pressure to demonstrate value while helping customers navigate affordability concerns. For industry professionals, the challenge will be balancing risk-based pricing with customer expectations in an environment where homeowners are more cost-conscious than ever.
In the slideshow above, we'll look at which states' residents enjoy the lowest average homeowners' insurance premiums in 2026, according to The Zebra's report.
(Photo credit: Kevin/Adobe Stock)
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