5 States Where Home Insurance Is Rising in 2026
According to recent research from Insurify, the average annual cost of home insurance is expected to increase by 4% to $3,057 by the end of 2026. This comes after home insurance rates shot up 12% in 2025 to $2,948. The data showed that since 2021, home insurance costs have gone up 46%.
Another report from Ramsey Solutions noted that Oklahoma had the highest home insurance premiums this year at over $7,200 and Vermont had the lowest at just over $1,000.
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For this article, we consulted the data to determine which states' home insurance premiums are rising the most and what you can do to bring down your rates in 2026.
5 States Where Home Insurance Is Rising This Year
The research from Ramsey Solutions found that states with severe weather and higher rebuilding costs tend to have the highest premiums. However, with more frequent natural disasters, increased rebuilding costs and more lawsuits, home insurance premiums have increased across the country. Other reports indicated that amid severe weather challenges, insurers are shifting more financial risk onto homeowners by structuring policies differently.
Based on data from Insurify, these are five states where home insurance rates are rising the most in 2026 based on projections:
1. South Carolina
Average annual premium (end of 2025): $3,092
Projected average annual premium (end of 2026): $3,370
Projected increase in price: $278
2. Arkansas
Average annual premium (end of 2025): $3,129
Projected average annual premium (end of 2026): $3,345
Projected increase in price: $216
3. Missouri
Average annual premium (end of 2025): $2,826
Projected average annual premium (end of 2026): $3,035
Projected increase in price: $209
4. Oregon
Average annual premium (end of 2025): $1,485
Projected average annual premium (end of 2026): $1,571
Projected increase in price: $86
5. Oklahoma
Average annual premium (end of 2025): $4,962
Projected average annual premium (end of 2026): $5,205
Projected increase in price: $243
How Can You Handle Rising Home Insurance Costs?
The following tips will help you save money amid rising home insurance premiums.
Shop Around Frequently
“The first thing that we tell people is to frequently shop around at least every other year, or even every year if they're up for it,” said Michael Dunlop, a certified financial planner (CFP) and cofounder of Ignite Financial. “The insurance companies bank on you not wanting to deal with changing, so they're going to bump your rate up just a little bit at a time and figure you're not gonna notice.”
This is why it’s important to get a few quotes because you might find that the same coverage is available for less with another carrier.
Increase Your Deductible
Dunlop believes that many people are still at a $1,000 deductible because that's what they had when they got the policy years ago. He added, “Simply bumping that up to $2,500 or maybe $5,000, or maybe it's like 1% of the value of the home and the premium, a lot of times will drop quite a bit."
The caveat here is that it’s important that you have the savings in the bank to help you cover minor issues that could occur. For example, you may be better off paying for repairs that are around $800 or so instead of filing an insurance claim.
Review Your Coverage
“Conduct a coverage audit instead of blindly accepting rate increases or shopping for a lower premium,” remarked Brad Spurgeon, an insurance expert and CEO of Brad Spurgeon Insurance Agency Inc. “Many policyholders are underwritten with limits or endorsements that are no longer aligned with their risk exposure.”
You want to review your exact coverage so that you’re not overinsured in areas that don’t matter. You can review your personal belongings to see if you have too much coverage, or you can look for other noticeable issues.
Invest iIn Mitigation Measures
The experts agreed that you can save money on home insurance by investing in certain safety features.
“Impact-resistant roofing, storm shutters and updated electrical panels are just a few examples of ways to qualify for underwriting credits with many carriers," Spurgeon said.
Review Windstorm and Flood Coverage
Spurgeon recommended that coastal and flood-prone homeowners, review their windstorm and flood policies separate from their homeowners policies, as it is just as important as the homeowners renewal itself.
As always, you want to ensure that you have a home insurance policy and a financial plan that match your current life situation.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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