SoFi surveyed 520 homeowners around the nation on April 13, 2026, and the results paint a stark picture of the homeowners insurance crisis now gripping American households. Forty-four percent say their homeowners’ premiums are now large enough to rival their mortgage payments, a financial squeeze that has turned what was once a predictable housing cost into a volatile budget wildcard.
Almost 2 in 5 people (39%) across the country saw their insurance premiums increase by more than 20% at a single renewal. Meanwhile, premiums have climbed 46% since 2021, roughly three times as much as inflation, according to Insurify’s analysis. The survey, released this week, underscores how insurance volatility—premium spikes, policy cancellations, and insurer withdrawals from high-risk states—has left many homeowners on increasingly unstable financial ground.
The crisis is not limited to coastal wildfire or hurricane zones. Premiums rose in 95% of U.S. ZIP codes between 2021 and 2024, making this a national affordability story that touches nearly every buyer, seller, and current homeowner in the country.
The numbers
Who’s feeling the squeeze—and where
Insurance costs are hitting hardest in high-risk regions, but no part of the country is immune.
The SoFi survey found that the burden varies sharply by region. In the Western states, 62% of respondents say their premiums are as high as mortgage payments; in the Midwest, only 34% do. The West’s exposure to wildfires and the resulting insurer exodus has pushed many homeowners into expensive state-run FAIR plans or forced them to piece together coverage from multiple carriers.
Nearly half of the homeowners in SoFi’s survey report relative stability in their home insurance dealings. Nationwide, 49% report that not only have they been spared cancellations or nonrenewals, but they’ve also experienced stable premiums over the past three years. But the other half tells a very different story. In the last two years, 38% of respondents living in Western states were hit with nonrenewal or cancellation notices due to “catastrophic risk” or property-specific concerns; they were forced to find new insurance carriers.
Household insurance costs rose 6.9% over a recent 12-month period, prompting 48% of owners to consider raising deductibles or switching to lower-tier policies to manage costs. One-quarter of homeowners surveyed are “very” or “extremely” concerned that their homes may become unsellable because of sky-high insurance prices.
Key findings from the SoFi survey
44% of homeowners say their insurance premiums now rival their mortgage payments
39% experienced premium increases of more than 20% at a single renewal
49% report stable premiums over the past three years
48% are considering raising deductibles or switching to cheaper policies
25% are very or extremely concerned their homes may become unsellable due to insurance costs
520 homeowners surveyed nationwide on April 13, 2026
The bigger picture
Why premiums keep climbing—and where they’re headed
Five straight years of increases, driven by climate risk and rising rebuild costs.
Insurify data scientists project the average annual cost of home insurance will rise another 4%, to $3,057, by the end of 2026, marking the fifth consecutive year of increases. The average annual premium is projected to increase 4% to about $3,057 this year, after jumping 12% in 2025, according to Insurify, an online insurance comparison site.
The drivers are structural. Extreme weather and costly natural disasters are the biggest drivers behind higher rates, with risks varying by region. Severe convective storms — tornadoes, hail, high winds — caused more than $51 billion in U.S. insured losses in 2025, the third consecutive year above $50 billion and more than any other category of natural disaster, according to the Insurance Information Institute.
Some states are seeing far steeper increases. Premiums are projected to jump 10% or more in several states, including Georgia, New Mexico, Nebraska, and California. Insurify predicts that California premiums will rise 16% in 2026, the largest estimated hike in any state. Florida remains the most expensive state for home insurance, with a typical premium of $8,292 annually, nearly three times the national average.
Midwest and Great Plains states saw some of the steepest increases in 2025, largely due to severe convective storms that can deliver hail, tornadoes, and other perils to affected areas. Since 2023, Minnesota, Colorado, Iowa, Illinois, Oklahoma, Louisiana, and Michigan have seen home insurance costs jump more than 35%.
You can read more about the national insurance market trends in SoFi’s full 2026 Home Insurance Report, which was published in July and includes the April survey data.
What to do
How buyers and homeowners can respond
Practical steps to manage rising premiums and maintain coverage.
The survey revealed troubling gaps in disaster preparedness. Hurricanes and severe windstorms rank as the greatest perceived threat to homes, yet more than half of homeowners spent nothing on damage-mitigating protective modifications in the past year. That’s a missed opportunity: many insurers offer premium discounts for mitigation measures like impact-resistant roofing, wind retrofits, or smart home water-leak sensors.
Cutting coverage is risky. Dropping coverage entirely risks triggering lender-imposed force-placed insurance policies that typically cost more and provide less protection than the original policy. Instead, homeowners should shop around—Insurify, LendingTree, and other comparison sites make it easier to compare quotes from multiple carriers at once.
For buyers, insurance now needs to be part of the affordability calculation from day one. Lenders require bindable coverage before closing, and in some high-risk markets, finding any coverage at all can delay or kill a deal. Before making an offer, call an independent insurance agent and get a ballpark quote for the specific property. If the premium is unaffordable or coverage is unavailable, walk away—or negotiate the price down to account for the insurance burden.
Buyers and homeowners looking for ways to reduce housing costs can explore our affordability guide, which covers budgeting strategies, down payment assistance, and how to calculate the true monthly cost of homeownership. If you’re financing a purchase, understanding mortgage options and how escrow accounts work will help you plan for insurance and property tax increases. And if you’re a first-time buyer, know that many state and local programs can help offset costs, though none directly subsidize homeowners insurance.
Action steps
Shop around: Get quotes from at least three carriers; prices can vary by hundreds of dollars for identical coverage.
Bundle policies: Combining home and auto insurance with one carrier often unlocks discounts.
Raise your deductible: Moving from a $1,000 to $2,500 deductible can lower premiums 10-20%, but only if you have the cash reserves to cover a claim.
Invest in mitigation: Impact-resistant roofing, storm shutters, and monitored alarm systems can earn premium discounts and reduce damage.
Review your coverage annually: Make sure your dwelling coverage keeps pace with rising rebuild costs, but drop unnecessary riders.
Ask about discounts: Many insurers offer breaks for being claims-free, installing smart home devices, or being a long-term customer.
Quick answers
Homeowners insurance costs: common questions
Why are homeowners insurance premiums rising so fast?
The primary drivers are climate-related disasters (wildfires, hurricanes, severe storms) and rising rebuild costs. Insurers paid out record claims in recent years, and reinsurance—the insurance that insurers buy—has become much more expensive. Those costs are passed directly to homeowners.
Can I drop homeowners insurance if I can’t afford it?
Not if you have a mortgage. Lenders require coverage as a condition of the loan. If you drop your policy, the lender will buy force-placed insurance on your behalf and bill you—and it typically costs far more than a standard policy while providing less protection. If you own your home outright, you can legally drop coverage, but you’d be taking on enormous financial risk.
What is a FAIR plan, and should I use one?
FAIR plans are state-run insurance programs of last resort, designed for homeowners who can’t get coverage in the private market. They’re typically more expensive and offer less coverage than standard policies. In California, the FAIR Plan has ballooned from 270,000 policies in 2022 to more than 680,000 as of March 2026 as private insurers have pulled back. Use a FAIR plan only if you have no other option.
Which states have the highest homeowners insurance premiums?
Florida has the highest average premium at $8,292 per year, nearly triple the national average. Other high-cost states include Oklahoma, Texas, Kansas, Nebraska, and Louisiana. California is seeing the fastest rate of increase in 2026, with premiums projected to rise 16% this year.
How can I lower my homeowners insurance premium?
Shop around and compare quotes from multiple carriers. Raise your deductible if you have emergency savings. Bundle home and auto insurance. Install mitigation features like impact-resistant roofing, storm shutters, or a monitored security system. Ask your insurer about all available discounts, including claims-free, loyalty, and smart-home discounts.
Will insurance costs affect my ability to sell my home?
Possibly. One-quarter of homeowners in the SoFi survey are very or extremely concerned that high insurance costs will make their homes unsellable. Buyers are now factoring insurance premiums into affordability calculations, and in high-risk areas, some buyers are walking away when they discover coverage is unavailable or prohibitively expensive. Sellers in these markets may need to price homes lower to account for the insurance burden.