U.S. Home Insurance Premiums Rising Quickly

According to the Global Insurance Market Trends 2026, out today, home insurance premiums increases in the United States have been among the fastest in the OECD. Between 2024 and 2025 alone, they were up by more than 8 percent.

This makes U.S. price hikes the fourth highest among the 30 OECD countries included in the study in 2025. Only Turkey, France and Norway saw bigger rises. U.S. home insurance becoming more costly has led to homeowners cancelling or downgrading their contracts, according to the Consumer Federation of America.

Climate change has made catastrophic losses of homes more likely. This has led to premiums going up, while rising property values and more houses being built near coastlines and forests where they are at bigger risk of destruction also contributing to the development. Another big factor recently has been the cost of building materials skyrocketing because of inflation and global supply shortages.

Due to these issues, insurers have left some home insurance markets – for example State Farm in many California zip codes in 2024. Fewer (or no) competition is then making price increases even more severe and gives homeowners no option to switch.

Home insurance premiums sank in the United Kingdom, among other nations, because of regulatory oversight improving.