While cases exist for homeowners insurance premiums to stabilize or even decline in 2026, in 36 states and the District of Columbia they rose over a two-year period, an Insurance.com report said.
Ironically, one of the 12 states they were lower (three reported no change between 2023 and 2025) was Florida. But the 6% decline did not change the fact that
The national average was $2,543.
This data comes from an Insurance.com report, which said the drop in premiums for Florida "is good news, but less surprising, given that changes in legislation have been showing signs of improving the market and reducing insurance rates over the past year."
Homeowners insurance costs are being cited as
"Climate change- and inflation-driven rate increases have driven a decline in customer satisfaction," said Leslie Kasperowicz, executive editor and insurance expert at Insurance.com, in a press release. "Even as rates level out, homeowners will likely be searching for more ways to save in 2026."
Why premiums will change in 2026 in either direction
Arguments exist for reductions or further increases. Premium pricing is likely to benefit from the quiet Atlantic hurricane season in 2025, where no storms making landfall on the Atlantic and Gulf Coasts will likely ease loss ratios.
Regulatory changes are also a help, with Insurance.com particularly pointing to Florida's curb of what it termed "frivolous lawsuits."
Finally, profit margins raised by past increases makes it less likely insurers will have to go back to regulators.
On the other hand, existing rate increase requests, such as State Farm in California, could play out in 2026.
State Farm withdrew from writing new business in the state in 2023 and
A June 2024 request for a 30% increase is still pending, the report said. If approved, it will raise rates by about $600 a year in California.
An active hurricane and/or wildfire season ahead could also lead to higher premiums.
"Tropical Storm Risk, a tropical storm tracking resource, predicts seven Atlantic hurricanes for 2026, three of which are predicted to be intense, but early forecasts are subject to change," the report notes.
Finally, Pres. Trump's ever changing tariff policies regarding home building materials, such as on lumber from Canada, could trickle down to insurers who pay for post-disaster repairs. Those then will be passed on to policyholders.
"What's most likely to raise your home insurance rates depends on where you live," the report said. "While there are many areas of overlap, it's good to know what risks are most likely to damage your home, so you can be prepared."
Florida's modest decrease (down 6%) is good news, but less surprising, given that changes in legislation have been showing signs of improving the market and reducing insurance rates over the past year.
Premiums in Florida have moved lower as its insurer of last resort, Citizens, looked for a rate decrease of 2.6% at the end of 2025, after years of raising them.
"Citizens has reduced its policy count dramatically to end 2025 with the lowest count ever (385,000 policies) as new carriers have entered the market and eased the burden," Insurance.com added.
Ironically, another hurricane-affected state, North Carolina, had the largest decrease over two years, down 28%, followed by Mississippi on the Gulf Coast, 25% lower.
But Louisiana, Mississippi's neighbor, had the largest increase at 58%. A sign that geography is not a limiting factor, Michigan was next at 41%.
HOA costs also rise due to homeowners premium increases
It's not just individual homeowners that are affected by rising insurance costs.
Homeowners associations are having to raise their fees as well, a report from Realtor.com said. Approximately 44% of homes currently for sale are subject to a monthly HOA fee.
The median HOA fee reached $135 in 2025,
"Rising insurance costs, stricter building safety standards, and higher labor and material prices are pushing associations to raise dues, making monthly HOA fees a much more common — and more costly — feature of homeownership than they were even a few years ago," said Joel Berner, senior economist at Realtor.com, in a press release.
Florida markets dominate the list of cities where the HOA payment makes up the highest percentage of the mortgage, with climate-related insurance costs being a major factor. Rules put into place following the Surfside disaster are also having an impact on HOA fees in the state.
"Florida is a clear outlier when it comes to HOA costs," Berner said. "Between rising insurance premiums and stricter safety and reserve requirements, many associations are facing higher operating expenses that ultimately get passed on to homeowners."
