Home Insurance Now Costs More Than Property Taxes in Two-Thirds of U.S. Counties
A Bloomberg Intelligence analysis released October 20, 2026 found that homeowners insurance premiums have risen 45 percent in inflation-adjusted terms over the past decade and now exceed average property tax bills in two-thirds of U.S. counties. Nebraska saw the steepest increase at 79 percent, driven by frequent hail and wind damage.
Homeowners insurance premiums now exceed average property tax bills in two-thirds of U.S. counties, according to a Bloomberg Intelligence analysis released on October 20, 2026.
Nationally, homeowners insurance policies have risen by 45 percent in inflation-adjusted terms over the past decade. On a county-level average, homeowners are paying 14 percent more for insurance than for property taxes. When weather-related auto insurance costs are factored in, that burden increases to 30 percent, and the disparity extends to 75 percent of U.S. counties.
Nebraska experienced the steepest increase of any state, with premiums rising 79 percent over the last decade. The state sits within a highly active severe storm corridor, making it susceptible to frequent hail, high winds, and tornadoes. In 2025, insurers in Nebraska paid out $1.35 in claims for every $1.00 collected in premiums. The average Nebraska homeowner now pays between $4,074 and $4,800 annually for homeowners insurance, with residents spending approximately 8.61 percent of their household income on coverage.
In Southeastern states, where property taxes are traditionally lower, insurance premiums can be 2.5 to 4 times the cost of property taxes. In the Northeast, the West, and major metropolitan areas, high property taxes mean that rising insurance premiums constitute a smaller percentage of the total tax bill.
The shift in costs coincides with a changing landscape for disaster recovery. The U.S. federal government, which historically covered approximately 90 percent of disaster recovery costs over the past two decades, has moved toward a 50-50 split with local and state governments. This transition places significant pressure on municipal budgets and, combined with rising insurance deductibles, reduces the disposable income of households.
Because many homeowners pay their insurance through escrow accounts, premium hikes have significantly increased monthly mortgage payments, often catching borrowers by surprise. In Nebraska, escrow costs now account for 45 percent of a typical monthly mortgage payment.
