Home Insurance Squeeze Deepens in 2026 as Surveys Show More Hikes and Tough Choices

Overview

• Average homeowners premiums rose 24% from 2021 to 2024, and 82% of owners expect another increase in 2026, with most anticipating single‑digit hikes, according to Kin’s Homeownership Trends Report and Consumer Federation of America data.
• Climate risk is driving behavior: 93% expect extreme weather to damage their homes within three years, 49% are weighing a move due to climate concerns, and many say they would avoid Florida and California because of exposure.
• Budget strain is widespread, with 59% reporting a premium increase last year and 57% making sacrifices to pay for coverage, including cutting spending, delaying repairs, or taking on debt, Insurify found.
• The average annual premium reached $3,017 in 2025, and 28% say they would drop home insurance if they could, though most mortgages require coverage, limiting consumer options.
• Analysts and industry voices cite multiple price pressures, including higher rebuilding costs linked to tariffs, reduced federal resilience efforts after FEMA ended the BRIC program, and limited access to climate data following federal removals of insurance reports.