What the numbers show
If your mortgage feels pricier, insurance is a big reason why. In the second quarter, homeowners with single-family mortgages spent an average of $209 per month on property insurance, which worked out to 9.6% of the monthly mortgage tab. Compared with the beginning of 2020, that dollar figure is nearly 80% higher.
There is a small silver lining: from the first quarter to the second, insurance costs rose 1.8%, the gentlest quarter-to-quarter climb since ICE began tracking this measure. Year over year, costs were up 8.7% in Q2, a slower pace than the 11.4% annual increase seen at the start of 2026, and well below the 15.1% annual peak reached in late 2024.
Insurance has quietly become one of the biggest swing factors in what a home costs to own. Market Briefs tracks those costs free every weekday.
Why costs moved and where they rose fastest
Most of the annual jump came from people carrying more protection. Roughly two-thirds of the increase reflected higher coverage limits. Those limits rose 5.5% from a year earlier, while the price per $1,000 of coverage rose 3%. That is a pivot from 2024, when higher pricing did most of the lifting.
Location still matters a lot. In New Orleans, property insurance now makes up 24.3% of the average mortgage payment, compared with just 4.3% in San Jose. Some of the biggest annual increases showed up in Greenville, South Carolina at 15.8%, Honolulu at 14.7%, Minneapolis at 13.1%, and in California's Sacramento and San Diego at about 12%.
Many of the fastest risers have dealt with hurricanes, wildfires, or hail. Notably, Miami and New Orleans - the two markets with the country's highest average insurance costs - saw some of the smallest annual increases this time.
What consumers are doing and what it means for your portfolio
Shoppers found real savings. Over the past year, homeowners who moved to a new private carrier reduced what they paid for insurance by 6.6% on average, the biggest drop ICE has seen since it started tracking switching outcomes in 2013. Those who stuck with their carrier saw premiums climb 10.4%. On average, switchers saved $440 a year compared with stayers, came away with deductibles 1.4% lower, and secured 7.3% higher coverage limits.
Andy Walden, ICE's head of research on mortgages and housing markets, said, "Property insurance has been a fast-growing component of the monthly mortgage payment, but this quarter's data shows the pace of increase is finally slowing." Bob Hart, who is president of mortgage technology at ICE, added: "The sharp differences we're seeing across markets highlight the value of having both the data to understand where costs and risks are changing and technology that can help address them."
Premiums may be cooling, but they are still reshaping affordability across the country. Join the free Market Briefs daily newsletter and watch where they head next.
