Home Insurance Premiums Now Exceed Property Taxes in Two Thirds of US Counties
Home insurance premiums have risen 45 percent over the last decade and now exceed property tax bills in two-thirds of U.S. counties, according to October 2026 data. The surge is driven by climate-related losses, rising construction costs, and insurers pulling back from high-risk markets. Financial advisers say homeowners should shop for coverage annually and consider higher deductibles to manage costs.
Home insurance premiums have risen 45 percent over the last decade and now exceed property tax bills in two-thirds of U.S. counties, according to data reported in October 2026.
The surge is driven by a combination of climate-related losses, rising construction and labor costs, and major insurers pulling back from high-risk markets including Florida, California, and parts of the Gulf Coast. In some states, homeowners are being forced into state-backed insurers of last resort, which often carry higher premiums and lower coverage limits.
The increase adds a significant financial burden for homeowners already dealing with elevated mortgage rates. The 30-year fixed mortgage rate topped 7 percent in late September 2026 and has remained elevated, with Fannie Mae projecting rates will hover around 7.4 to 7.5 percent through the end of 2026 and into 2027.
Financial advisers say homeowners should shop for coverage annually, compare quotes from multiple carriers, and consider raising deductibles to lower monthly premiums. Bundling home and auto insurance with the same carrier can also reduce costs.
Some states are exploring regulatory changes to stabilize their insurance markets, but experts say meaningful relief for consumers is likely years away. In the meantime, homeowners in high-risk areas face the prospect of continued premium increases.
