Homeowners Insurance Costs Expected to Rise in 2026

Homeowner insurance premiums are expected to rise 8% in 2026 and another 8% in 2027, according to research by real estate analytics firm Cotality.

The Details: Insurance rates have reportedly grown by 58% on average since 2018, now accounting for a record of about 9% of typical homeowner payments, "in terms of principal, interest, property tax, and insurance premiums." Cotality cited construction costs, natural disasters, "climate-related risks," and state insurance regulations as causes of the rate increases, as first reported by Realtor.com (Center bias) on Sunday. The firm pointed to disaster-reducing measures as a way to minimize the increase for Americans, 75% of whom "worry their homeowners insurance could soon become unaffordable." 

For Context: The New York Times (Lean Left) interviewed some individuals in Louisiana whose "monthly insurance costs are now higher than their home loan payments." The outlet suggested that the increased rates may be discouraging home sales, leading to lowered housing costs in some areas. Reuters (Center) highlighted a rise in coverage by "last resort" FAIR (Fair Access to Insurance Requirements) plans in natural disaster-prone areas, due to a lack of coverage by private insurance plans. In July, AllSides covered the news that US home sales dropped in June while the median home price reached a record high.

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How The Left and Center Covered It: News outlets on the left and in the center of the political spectrum emphasized the reported "climate-related risks" more prominently than outlets on the right. The Times said, "Premiums are rising fast in parts of the United States most exposed to climate-related disasters." The Times also noted credit scores, renovation costs, population changes, and general inflation as factors of the rate increase. Reuters emphasized, "FAIR plans were designed as a stopgap measure, but as climate change fuels stronger disasters, these insurers are increasingly relied on." The outlet highlighted disaster reduction practices but said, "The risk of disaster may be too high in some areas for affordable insurance."

How The Right Covered It: Fox Business (Lean Right) used alternative wording in its attribution to "natural disasters," though it did mention the increased frequency of said disasters. It noted the renovation costs, general inflation and some trends of the industry's supply chain. The outlet also highlighted the "already stagnant housing market" and "persistent affordability crisis, as high interest rates and rising housing costs have made it difficult for people to move." 

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