American homeowners may feel like they are constantly covering unexpected costs, but home insurance is traditionally more of a constant: required for most homes, billed regularly, and something of a known quantity. That’s no longer the case. Owners of homes new and old are now asking how they can pay less for insurance that has rapidly risen in cost without any apparent increase in benefits.
How much have home insurance costs risen?
While homeowners insurance and add-on coverage for many perils have both risen in price significantly in the last decade, some states have been hit harder by insurance inflation than others.
The higher the risk of severe weather damage by state, the higher the costs for full home insurance coverage, but even lower-risk states have seen price increases that many consider to be unsustainable.
In Texas, where the massive state receives more severe weather than almost any other part of the country, home insurance costs saw a 23.3% price increase in 2023 while other western states saw similar but slightly lesser increases.
Over the same span of time, Colorado home coverage rose by 11.8% and policies in Illinois increased by 18.5%. While the size of the increase varies notably by region, the upward trend is consistent across the U.S.
In addition to the ongoing increase in insurance costs, homeowners must also remain mindful of the costs of repairs and maintenance that are following a similar path to higher prices. The laborers needed to complete projects in a timely manner and the resources used to ensure quality work have both seen consistent bumps in price and scarcity. Even if the homeowner has cash in hand–either their own money or a payout from an insurance policy–in some cases, a shortage of skilled labor in their area has delayed or halted projects all across the country.
Construction inflation has continued to increase at a steady pace, with prices for both labor and materials going up by an average of 40% between June or 2019 and June of 2024.
What are homeowners doing about it?
Comparison shopping
Policyholders have options for finding the best available price, but the most tried-and-true often gives the best results: comparion shopping.
Homeowners have a number of options available to consider before renewal time comes around for their home insurance policies. Comparison sites like The Zebra or PolicyGenius can provide quotes from a range of providers in just a few moments, and this can be an easy way to get the bigger picture of what options are available. It’s worth noting that these sites are likely to pass your name and contact information along to their preferred carrier partners, who will in turn reach out to you as a sales prospect.
The quotes you receive from a site like this can be useful leads in your own price comparison efforts, however. It’s worth following up with the carriers that offer better prices for more information. You can take the quote to an independent insurance agent for guidance in finding the right amount of coverage for your home for a fair price. You also have the option of contacting the insurance provider on your own, foregoing an intermediary, and requesting their best price that way, or buying a policy right away, if the price seems fair.
Finally, simply being aware of the range of prices being offered by competing insurance carriers in your state is a valuable set of information to have in your hand. With a few phone calls or email inquiries, you can be significantly more prepared to negotiate the best price possible for your next home insurance policy or supplementary add-on policy.
Depending on the state in which you live, it may be worth your time to request average insurance pricing information from your local state insurance department. This can be a shortcut to understanding the range of prices that are currently offered if it’s available in your state.
Bundling coverage types
By purchasing your home and auto coverage from the same provider as a bundle, policyholders can receive significant discounts–up to 30% less than the price of the individual policies in some circumstances.
Get a free quote for home wind and hail insurance today
Don’t assume that the first price an insurance provider quotes is their best offer. Come into the conversation prepared with competitive prices as described above, and questions about what benefits they can offer on bundles or the purchase of multiple policies. The small amount of research required is likely to be more than worth it when you get your next insurance bill.
Using higher deductibles to lower overall costs
There is a balance between the two costs of a home insurance policy: the premium and the deductible. Raising one cost can be an effective way to lower the other, but each cost brings its own kind of risk.
The deductible will only have to be paid if a claim is filed on the insurance policy. If you are confident that you won’t need to make a claim during a term of coverage, you may be willing to accept the risk associated with a higher deductible. This would allow you to negotiate a lower monthly premium and a lower overall insurance bill, freeing up money for other uses.
On the other hand, if you aren’t comfortable with the idea of making a payment of $5,000 or even $10,000 to cover a wind and hail deductible in the case of damage from a weather event, your deductible could be negotiated lower with your acceptance of a higher premium cost for the year.
Working on credit scores to get better insurance prices
In 44 of the 50 states, insurance companies use homeowner insurance-based credit scores to determine the rates they offer their customers. Those with higher scores and better records of paying on time may be offered more attractive prices, as the insurance carriers see this demographic as a more responsible group of potential customers.
Note: California, Hawaii, Maryland, Massachusetts, Michigan, and Oregon are the states that prohibit this practice for home insurance.
If you know you have a less than excellent insurance-based credit score, or that there are marks on your credit history within the last few years, making an effort to raise your score through responsible payment practices now could prove worth the effort the next time you request an insurance quote from your local agent.
Avoid frequent claims on your existing policy
It may not be common knowledge to every homeowner, but making claims on a policy is the fastest way to get hit with higher rates or even a refusal to continue coverage, sometimes called a ‘non-renewal’ by insurers.
While homeowners insurance is intended to be used to help homeowners get their homes and their lives back to normal after damage from a natural disaster occurs, most policies are not considered appropriate for ‘maintenance’ projects. If a suspicious vendor offers to replace or repair your roof “for free” by making a questionable claim on your homeowners policy, it’s best to end the conversation right there.
Misrepresentation of the need for work that is performed with a home insurance payout can be grounds for the cancellation of your policy or, in some cases, charges of fraud for the homeowner and the contractor.
How can Americans plan for future changes?
The rising cost of homeowners insurance doesn’t appear to be changing course any time soon, as increasingly frequent severe weather events continue, materials costs stay high, and insurance companies seek additional ways to share risk while still offering home coverage at responsible prices. Using comparison pricing tips and the other suggestions described in this article can help you keep your insurance bills at a reasonable level while maintaining the coverage you need to protect your home and other property..
Sources:
“Homeowners face crushing insurance cost increases”, United Policyholders, June 04, 2026, https://uphelp.org/homeowners-face-crushing-insurance-cost-increases-2/
Stanger, Tobie. “Why Home Insurance Costs So Much—and How to Pay Less”, Consumer Reports, Nov. 01, 2024, https://www.consumerreports.org/money/homeowners-insurance/why-home-insurance-costs-so-much-and-how-to-pay-less-a6189826846/
DeNicola, Louis. “Which States Restrict the Use of Credit Scores in Determining Insurance Rates?”, Experian Blog, Mar. 18, 2025, https://www.experian.com/blogs/ask-experian/which-states-prohibit-or-restrict-the-use-of-credit-based-insurance-scores/
Rosenfeld, Jordan. “Home and Auto Insurance Costs Are Rising — 6 Ways To Keep Your Budget on Track”, Yahoo! Finance, Sep. 20, 2026, https://finance.yahoo.com/real-estate/articles/home-auto-insurance-costs-rising-170025120.html
Gray is the Senior Content Specialist at Sola Insurance, working with the Sales and Marketing teams to provide helpful, valuable content for homeowners and agents. Gray has worked previously in finance, logistics, and advertising.
