Home Insurance Renewals Rose 10.6% in 2026 — but a Record 11.7% of Homeowners Got a Cut: The States Still Climbing, the Roof Penalty and How to Lower Your Premium Before It Renews (Oct. 2026)

If you own a home, your renewal notice is now worth a second look: a record 11.7% of renewing homeowners saw their premium fall in the first half of 2026. Photo: Pexels (7579046), Pexels License.

Last updated Oct. 17, 2026. Premium, rate-filing and price-index figures below were checked against the sources linked in each section on Oct. 17, 2026. National averages are not quotes. Your own premium depends on your state, insurer, home and claims history.

After three years of double-digit shocks, the homeowners insurance market is finally turning in buyers' favor. Insurance marketplace Matic's 2026 mid-year report found that the average premium increase at renewal fell to 10.6% in the first half of 2026, down from 19.4% in 2025 and 28% in 2024. A record 11.7% of renewing homeowners saw their premium go down, compared with 7.4% in 2025 and just 4.9% in 2024. NerdWallet's 2026 Home Insurance Rates Report found that the median rate increase insurers requested from state regulators so far in 2026 is only 1.0%.

There's a catch, though. Most of those savings go to people who ask for them. If you let your policy auto-renew, you're taking whatever your current insurer decides to charge. That's often still a meaningful increase, even as competitors cut prices to win new customers. Matic's data shows that new policies rose 5.9% in the first half of the year, while renewals rose 10.6%. That gap is the opportunity.

This guide covers where home insurance prices are heading in late 2026, which states are still rising, why your roof and your home's age matter more than ever, and a step-by-step plan to lower your premium before your next renewal. It also covers the escrow catch that can raise your mortgage payment even if you never look at your insurance bill.

The 30-second version

• Renewal increases are getting smaller. The average renewal rose 10.6% in the first half of 2026, the smallest increase Matic has recorded, and 11.7% of renewals actually fell.
• Insurers are asking for much smaller increases. In NerdWallet's review of filings from Jan. 1 through Aug. 17, 2026, 53.6% of homeowners rate filings sought an increase, with a median requested change of +1.0%. That compares with 68.7% and +5.4% in 2025, and 81.6% and +10.0% in 2024.
• Payments are leveling off. Bank of America payments data shows the median household's property insurance payments (auto, homeowners and renters) rose just 1% in 2026, after about 6% in 2025 and roughly 12% in 2024 (Bank of America Institute).
• But insurance still costs a lot. The typical premium was $2,564 a year in early 2026, 24% higher than in early 2023. Premiums still rose more than 10% in Pennsylvania, Arizona and Minnesota over the past year.
• What to do: 45 to 60 days before renewal, update your rebuild cost, get at least three comparable quotes, price a higher deductible, ask about roof and mitigation discounts, and then call your current insurer with the best offer you found.

What the new 2026 home insurance numbers say

Several independent data sources now point the same way. Increases are slowing, more insurers are competing again, and relief is uneven.

Renewals: still rising, but by much less

Matic, which compares quotes from dozens of insurers, reports that homeowners renewing their policies in the first half of 2026 saw an average increase of 10.6%. That's still more than double general inflation, but it's the smallest increase in the company's data. For newly written policies, premiums rose 5.9% year over year, and the average new-policy premium was $2,057.

Two other Matic findings matter for shoppers. First, 11.7% of renewing homeowners saw a decrease, a record. Second, the average number of quotes available per homeowner rose 27% from 2025 to 2026 and is 74% above the 2024 low. In plain English, more insurers are willing to write your policy again, so it's worth seeing what they'll offer.

Rate filings: the forward-looking signal

In most states, insurers must file rate changes with the state insurance department before charging them. Because those filings are public, they show what existing customers are likely to see at their next renewal. NerdWallet's analysis found that the share of filings seeking increases fell from 81.6% in 2024 to 68.7% in 2025 and to 53.6% in 2026 so far. The median request fell from +10.0% to +5.4% to +1.0%. NerdWallet notes the 2026 median could still rise before year-end if insurers file larger increases.

Part of the reason is that insurers' own costs are falling. Insurers buy catastrophe coverage, called reinsurance, to protect themselves. NerdWallet, citing Gallagher Re, reports that global property-catastrophe reinsurance rates fell about 15% at the January 2026 renewals, and U.S. property-catastrophe pricing fell another 20% to 25% at the July 2026 renewals.

What households actually pay

The Bank of America Institute's October 2026 analysis tracks real insurance payments from customer accounts. It found that median property insurance payments rose just 1% year over year in 2026, though the slowdown was uneven. Gen Z households still saw increases near 6%. Florida metros saw declines of roughly 7% to 8%, while California and several Northeastern metros kept seeing relatively strong increases.

Government price data shows a similar cooling. The Bureau of Labor Statistics' consumer price index for tenants' and household insurance stood at 175.093 in September 2026, compared with 169.935 a year earlier, an increase of about 3.0% (BLS data via FRED). Keep in mind that this index tracks renters' contents coverage and the contents portion of homeowners policies, not the full cost of insuring the structure, so it's a rough signal rather than a direct measure of your bill.

Renewal increases are shrinking, more renewals are falling and insurers are filing for far smaller hikes. Data: Matic 2026 Home Insurance Report; NerdWallet 2026 Home Insurance Rates Report. Chart: Dollar Lane (original).

Why it still feels expensive

Slower increases don't undo earlier ones. NerdWallet found the typical premium reached $2,564 a year in the first quarter of 2026. That's up 24% since early 2023, or a median of $496 more per year for a homeowner with good credit, no claims and a house built in 1984. Researchers at the Federal Reserve Bank of Dallas, using ICE McDash mortgage data, found that homeowners insurance made up 14% of the average monthly mortgage payment (principal and interest) in 2025, up from 10% in 2013, and that premiums rose about 70% from 2019 to 2025 (Dallas Fed). With the 30-year fixed mortgage averaging 7.40% in Freddie Mac's Oct. 15 survey (Freddie Mac PMMS), any savings on insurance help offset an expensive loan.

Where premiums are falling, and where they are still climbing

Where you live is still the biggest factor in your premium. NerdWallet compared typical premiums from the first quarter of 2025 to the first quarter of 2026 using filed rating formulas from insurers that stayed in each market. Note that this comparison window covers 11 months.

State or group	Change in typical premium, Q1 2025 to Q1 2026	What it means for your renewal
Pennsylvania	+16.4%	Largest increase in the country. Shop early and compare deductibles.
Arizona	+14.9%	Also has the largest three-year increase (+49.8% since Q1 2023).
Minnesota	+10.9%	The hail-heavy Midwest has been hit hardest (+25% over three years).
U.S. median	+4.6%	Slowest growth in the three-year study period.
West Virginia	−7.6%	Falling. If your renewal went up, ask why.
Rhode Island	−7.9%	Falling. Competitive quotes may beat your renewal.
North Carolina	−9.6%	Largest decline in NerdWallet's data.

Source: NerdWallet 2026 Home Insurance Rates Report (Quadrant Information Services data; benchmark home built in 1984, $1,000 deductible, good credit, no claims). Premiums fell in 18 states and Washington, D.C., over the past year, up from three states in each of the two prior years.

A few more state-level signals are worth knowing:

• Texas: The Texas Department of Insurance said on Oct. 8 that most home insurers filing rate changes since July 1 proposed decreases, affecting about 700,000 policyholders. Filed homeowners rate changes over the past 90 days averaged −4.3%. Those included a 6% cut from ASI Lloyds (71,000 policyholders) and a 5.2% cut from Texas Farm Bureau Mutual (133,000 policyholders) (TDI).
• Flat or falling in Matic's data: Matic saw nearly flat or declining average premiums in New York, Wisconsin, Missouri, Oregon and Colorado.
• Still double digits: Matic says six states, including California, Florida and New Jersey, continued to see double-digit premium increases. Bank of America's payment data, however, shows Florida metro payments falling. That's a good reminder that results vary by data source, city and insurer, so your own quotes are what count.

If your insurer has already sent a non-renewal notice instead of a price increase, the steps are different. Our guide to what to do when your home insurer drops you explains state FAIR plans, force-placed coverage and the deadlines that matter.

The two hidden price drivers: your roof and your home's age

Insurers now price individual homes much more precisely than they used to. Aerial imagery, geospatial data and catastrophe models let them assess tree overhang, roof condition and wildfire or flood exposure for each address. As a result, two houses on the same street can get very different quotes.

Roof age

Matic reports that roof-related claims have become more frequent and more expensive, and that roof claim severity hit a record in 2025. Its data shows the premium gap between homes with roofs 1 to 5 years old and homes with roofs 11 to 15 years old grew from $65 in 2021 to $96 in 2024, $138 in 2025 and $189 in the first half of 2026, a 10.7% difference. NerdWallet cites research from the Insurance Institute for Business and Home Safety finding that asphalt shingles weathered for just two years and already hit by small hail were roughly 10 times more vulnerable to severe hail damage than new shingles.

Roof age now moves your price: Matic found the premium gap between 1-to-5-year-old and 11-to-15-year-old roofs grew to $189 (10.7%) in 2026. Tell your insurer about a new roof. Photo: Ryan Stephens / Pexels (33404248), Pexels License.

What that means for you:

• Know your roof's install date and material. Many online quote forms ask for it, and a wrong answer can mean a mispriced quote or a surprise after an inspection.
• If you've replaced the roof, tell your insurer. Send the invoice or permit. If your insurer still has an older roof year on file, you may be overpaying.
• Ask how the policy settles roof claims. Some policies pay actual cash value (depreciated) instead of replacement cost on older roofs, or carry a separate wind/hail percentage deductible. A cheaper quote with those terms isn't the same coverage.
• Ask about impact-resistant or fortified roof credits. Availability depends on your state and insurer, so ask for the specific discount and its amount in writing.

Home age

NerdWallet found that a typical 1984-built home now costs 81.2% more to insure than an otherwise identical new home, up from 59.2% in early 2023. That's $1,149 more a year. In the first quarter of 2026, premiums on new homes actually dipped 0.3% from a year earlier, while premiums on older homes rose 4.6%. If you own an older house, updates to wiring, plumbing, heating and the roof are worth documenting, because they can change how an insurer rates the home. If you're house hunting, ask for an insurance quote before you make an offer. The roof's age now shows up as a real line item in your monthly cost.

How to lower your home insurance renewal: a 9-step plan

The best time to start is 45 to 60 days before your renewal date. Renewal offers often arrive only a few weeks ahead, and you'll want time to compare quotes without a coverage gap.

1. Read your renewal offer line by line. Compare the new premium with last year's, then check Coverage A (dwelling), the deductibles (including any separate wind/hail or named-storm deductible), and whether anything changed from replacement cost to actual cash value. Look for removed discounts too. An increase sometimes comes from a lost discount rather than a rate increase.
2. Update your rebuild cost before you shop. Matic cites estimates that as many as 75% of U.S. homes may be underinsured. A policy that's cheap because the dwelling limit is too low isn't a deal. Use a current per-square-foot construction estimate for your area or ask your agent for a replacement-cost estimate. Our homeowners insurance basics guide explains Coverage A through F and how replacement cost works.
3. Get at least three quotes with identical coverage. Use the same dwelling limit, deductible, liability limit and endorsements for each. Use a mix of sources, such as a captive agent (State Farm or Allstate, for example), an independent agent who quotes several companies, and a direct online insurer. Our step-by-step guide to comparing homeowners insurance quotes without gutting coverage includes a worksheet you can copy.
4. Price a higher deductible, but only if you have the cash. NerdWallet found that going from a $1,000 to a $2,500 deductible saves about 11.4% on average, about $292 a year at the national median. Only do this if you could pay $2,500 out of pocket tomorrow without using a credit card.
5. Ask about every discount by name. Ask about bundling with auto, new roof, protective devices (monitored alarms, smart leak detectors, automatic water shutoff valves), claims-free history, paid-in-full, paperless billing and loyalty or retiree discounts. Matic notes that some insurers are building smart water and leak sensors into underwriting. Get the dollar amount of each discount, not just "you qualify."
6. Check that your insurer has your home's current details. Make sure roof year, updated systems, square footage and any removed hazards (trampoline, pool fencing, overhanging tree) are correct. Out-of-date information is one of the easiest overcharges to fix.
7. Think twice before filing small claims this year. NerdWallet found that one wind or weather claim raises rates about 10.2% nationally, roughly $261 a year at the median premium. Our guide on when to file a homeowners claim walks through the CLUE report and the break-even math.
8. Call your current insurer with your best quote. Tell them what you found and ask whether they can match it or re-rate your policy with a different deductible or discounts. Some insurers can move you to a newer rating plan or a sister company. If they can't, switching is usually simple. Just make sure the new policy starts the same day the old one ends.
9. If you have an escrow account, notify your mortgage servicer. Send the new declarations page and cancel the old policy only after the new one is active. Then check that the servicer pays the right company (see the next section).

The escrow catch: why your mortgage payment can jump even if you never see the insurance bill

Most homeowners with a mortgage pay insurance through an escrow account. The servicer collects one-twelfth of the estimated annual premium (plus property taxes) with each payment and pays the bill when it's due. When your premium rises, the servicer usually finds out at renewal, pays the higher bill and then runs an escrow analysis. If the account comes up short, your monthly payment can rise in two ways: a higher ongoing escrow deposit, plus extra to repay the shortage.

That's why shopping your insurance pays off twice. Lowering your premium reduces both the insurance cost and the escrow shortage that would otherwise be added to your mortgage payment. Our guide to reading your escrow analysis explains shortages, surpluses and your options for spreading repayment. A few practical tips:

• Time the switch carefully. If you switch insurers mid-term, the old company should refund the unused premium. If escrow paid the premium, that refund may come to you rather than going back into escrow. You can usually deposit it back to reduce a shortage.
• Watch for double payments or lapses. After you switch, confirm that the servicer stopped paying the old insurer and set up the new one. A lapse can trigger force-placed insurance, which is usually far more expensive and protects the lender, not you.
• Remember PMI and taxes, too. If your home's value has risen, you may also be able to drop private mortgage insurance. Ask your servicer about the requirements.

Worked example: what shopping one renewal can save

This is a hypothetical Dollar Lane illustration based on the national figures above. It is not a quote, and your results will differ.

Maria owns a 1980s house. She currently pays about the national typical premium of $2,564 a year, with a $1,000 deductible and insurance paid through escrow. Her renewal arrives with an increase equal to Matic's first-half 2026 average of 10.6%:

• Renewal offer: $2,564 × 1.106 ≈ $2,836 a year, about $272 more. Through escrow, that's roughly $23 a month more, plus any shortage repayment.
• Option A, higher deductible with the same insurer: Moving to a $2,500 deductible and applying NerdWallet's 11.4% average saving gives about $2,836 × 0.886 ≈ $2,513. That's about $323 below the renewal offer, but Maria takes on $1,500 more risk per claim.
• Option B, shopping with the same $1,000 deductible: Matic's data suggests new-policy prices are rising more slowly than renewals (+5.9% vs. +10.6%). If a competitor quoted Maria a premium 5.9% above her old one, she'd pay about $2,715, roughly $121 below her renewal, with no change in coverage. In practice, competing quotes can be much higher or lower than that.
• Option C, both: Shopping and pricing the $2,500 deductible with competitors, plus documenting her updated roof, could give the biggest savings. That only makes sense if her emergency fund can cover the higher deductible.

The lesson isn't the exact dollar amounts. It's that one hour of comparison shopping can be worth a few hundred dollars a year, and Matic's data shows a growing share of homeowners are being offered lower prices when they look.

Don't cut the wrong coverage to save money

When premiums are high, it's tempting to trim coverage until the price looks good. These are the cuts that tend to backfire:

• Dwelling coverage below rebuild cost. After a total loss, you could come up short. Some policies also reduce partial-loss payouts if you're badly underinsured.
• Dropping liability to the state minimum. Higher liability limits usually add relatively little to the premium, and a serious injury claim on your property can exceed a low limit. If you have significant assets, consider an umbrella policy.
• Ignoring water and flood. Standard homeowners policies don't cover flood. Many also limit sewer or drain backup unless you add an endorsement. See our guide to flood insurance.
• Accepting actual cash value on the roof without noticing. It can make a quote look cheaper while leaving you with a much smaller roof payout after a hailstorm.

Your home insurance renewal checklist

• ☐ Find your renewal date and set a reminder 60 days before it.
• ☐ Pull last year's declarations page and this year's renewal offer.
• ☐ Write down the dwelling limit, deductibles (including wind/hail), liability limit and endorsements.
• ☐ Update your rebuild-cost estimate.
• ☐ Gather your roof install year, material and invoice, plus records of system updates.
• ☐ Get at least three quotes with identical coverage (captive agent, independent agent, direct insurer).
• ☐ Price $1,000, $2,500 and, if your savings allow, $5,000 deductibles.
• ☐ Ask for every discount by name and get each dollar amount.
• ☐ Call your current insurer with your best quote.
• ☐ If you switch, line up the start and end dates, notify your servicer and confirm the escrow payment.
• ☐ Check your next escrow analysis for shortages, surpluses and payment changes.

FAQ

Are home insurance rates going down in 2026?

For many people, increases are slowing, and some premiums are falling. Matic found renewals rose 10.6% on average in the first half of 2026, the smallest increase it has recorded, and 11.7% of renewing homeowners saw a decrease. NerdWallet found typical premiums fell in 18 states and Washington, D.C., from early 2025 to early 2026. Nationally, though, premiums are still rising, just more slowly.

Why did my homeowners insurance go up if rates are falling?

National averages hide big differences. Your premium can still rise because of your state's filings, your home's age, roof age, rebuild-cost inflation (which raises your dwelling limit), a recent claim or a lost discount. Ask your insurer for a written explanation, and compare it with outside quotes.

How often should I shop for homeowners insurance?

Comparing quotes every year at renewal is reasonable while prices are shifting this much, and it's essential after a large increase. Getting quotes doesn't affect your credit score the way a loan application does, although many insurers use credit-based insurance scores where state law allows.

Can I switch home insurance before my renewal date?

Usually, yes. Most insurers let you cancel mid-term and refund the unused premium, though some keep a small fee or calculate the refund differently. Start the new policy before canceling the old one, and tell your mortgage servicer.

Does raising my deductible really save money?

On average, yes. NerdWallet found moving from $1,000 to $2,500 cut premiums about 11.4%. It's only a good deal if you can comfortably cover the higher deductible and you rarely file small claims.

Will one claim raise my rate?

Often, yes. NerdWallet found that one wind or weather claim raises rates about 10.2% nationally when you shop, and more in some states. Some states limit surcharges for weather claims, so check your state's rules.

Bottom line

The 2026 home insurance market rewards homeowners who shop. Renewal increases are the smallest Matic has recorded, a record share of renewals went down, insurers' median requested rate increase is just 1%, and more insurers are competing for customers. Those savings won't arrive on their own. Before your next renewal, update your rebuild cost, gather your roof details, get three comparable quotes, price a higher deductible you can afford, and give your current insurer a chance to match the best offer. If you pay through escrow, a lower premium also helps protect your mortgage payment.

Disclaimer: This article is for general educational purposes and is not insurance, legal or financial advice. Premiums, discounts, coverage forms and claim rules vary by state and insurer. Statistics come from the third-party sources linked above and reflect national or state averages, not quotes. The worked example is hypothetical. Review your policy documents and talk with a licensed insurance professional before changing coverage.