Home Insurance Premiums Set to Rise Again in 2026, Led by California and the Midwest
U.S. homeowners insurance premiums are on track to rise again in 2026, extending a run of increases driven largely by severe weather and rising rebuilding costs. According to a forecast from Insurify covered by Insurance Journal, the average annual premium is projected to climb about 4% this year to roughly $3,057, following a 12% jump in 2025 and a cumulative 46% rise since 2021.
The increases aren't spread evenly. States facing the sharpest projected hikes include California, Nebraska, New Mexico, and Georgia, while a handful of states — including Hawaii, Massachusetts, Maine, Louisiana, and Rhode Island — are expected to see rates hold flat or even dip slightly, per reporting from The Hill.
Severe convective storms — the tornado, hail, and wind events concentrated in the Midwest and Great Plains — have driven insured losses exceeding $42 billion for three consecutive years, a total significantly above the 10-year average, according to reinsurer data cited in the same reporting.
For homeowners renewing or buying a policy in 2026, the practical takeaway is timing: shopping for coverage well ahead of a closing date, rather than the week of, leaves more room to compare insurers if a first-choice carrier declines to write in a higher-risk ZIP code. Buyers can check exactly which insurance steps apply around a home purchase using the CoverageClock tool.