The price of house insurance coverage in the US rose by ~89% between 2014 and 2025, as quickly climbing house costs, extra frequent excessive climate occasions and inflation impacted insurers and householders. ICE analysts share key insights from their current 10-year examine into the forces propelling rising insurance coverage prices throughout the nation.
Over the previous decade, home insurance prices have risen quickly in lots of elements of the US. This has been pushed by quite a few elements, together with a rise within the prices related to excessive climate occasions, the COVID-era spike in nationwide housing values, and excessive inflation in 2021-22.
Earlier than 2017, the five-year rolling common prices related to billion-dollar catastrophe occasions was persistently lower than $100 billion in the U.S. Since 2017, nevertheless, these prices have persistently exceeded $120 billion.
Growing prices as a result of excessive climate occasions will seemingly proceed since these occasions are projected to turn into extra frequent and extreme, creating mounting value pressures for federal, state, and native governments, in addition to insurance coverage firms and householders.
In some elements of the nation, rising insurance coverage prices are already contributing to house affordability challenges. For householders with mortgages, insurance coverage is an unavoidable value as lenders require primary house insurance coverage, whereas householders in excessive flood threat areas face even larger prices as a result of lenders require them to carry further flood insurance coverage.
Premiums are additionally tied to the quantity of protection (usually set by the worth of the house) and over the previous 5 years, house values, in addition to development and substitute prices, have risen throughout the nation. Between March 2020 and January 2023, ICE’s nationwide Single Household Residence Value Index elevated by practically 36%.
As house values improve, the quantity of insurance coverage protection bought usually additionally will increase — resulting in an increase in premiums even when all different elements stay fixed. Excessive inflationover the previous few years has additionally contributed to a rise within the greenback quantity of insurance coverage premiums paid throughout the nation.
Rising insurance coverage prices are prone to have broad results on the U.S. housing and mortgage market. Residence values could also be impacted as fewer potential homebuyers are capable of afford the insurance coverage they should receive a mortgage, and residential worth declines might show disruptive for native governments that rely closely on property taxes.
As a result of these impacts are interconnected, insurance coverage value will increase will have an effect on each participant and stakeholder within the U.S. real estate market. This implies it’s crucial to know tendencies in insurance coverage prices throughout the nation.
To tease out the contributions of those various factors, ICE examined insurance coverage prices from greater than 18 million single household loans within the ICE McDash information set, which comprises anonymized information on residential loans within the U.S. again to 2013.
The evaluation finds that insurance coverage prices rose throughout the board throughout that point, however these value will increase fluctuate between totally different mortgage cohorts.
Insurance coverage prices for all energetic loans: Trying on the broadest view of insurance coverage value will increase — the 12 million single-family loans energetic in 2014 and 18 million energetic loans in 2025 — ICE information reveals the typical complete insurance coverage value for these loans has climbed from $1,270 in 2014 to $2,405 by 2025 (+89%). Price adjustments fluctuate considerably relying on location.
Determine 1. Common complete insurance coverage prices for all energetic single-family loans within the ICE McDash information set by county in 2014 and 2025. Supply: ICE McDash as of 9/01/2025.
Insurance coverage prices for repeatedly current loans:
Constantly current loans are related to established householders. Until dropped by an insurance coverage service, these households usually are not seemingly to buy cheaper or higher insurance policies annually. For the 2 million loans within the ICE McDash information set that existed repeatedly between December 2014 and August 2025, common complete insurance coverage prices virtually doubled from $1,230 in 2014 to $2,440 by 2025 (+98%).
Insurance coverage prices for loans originated in annually:
Homebuyers related to newly originated loans are prone to have been engaged in insurance coverage coverage choice in that 12 months. Within the ICE McDash information set, 950,000 loans had been originated in 2014, with a million loans originated in 2024. The typical complete insurance coverage value for 2014 loans was about $1,150, however by 2024, it had climbed to $1,950 — considerably decrease than the rise in value for repeatedly current loans, which was +69% larger in 2025 than in 2014.
Price per $1,000 of protection
Inflation and protection quantity adjustments have been main contributing elements to growing insurance coverage prices between 2014 and 2025. As a ratio, insurance coverage value per $1,000 of protection offers a perspective on these prices that accounts for each inflation and protection quantity adjustments.
Determine 2. Common complete hazard insurance coverage prices per $1,000 protection for all energetic single-family loans within the ICE McDash information set by county in 2014 and 2025. Supply: ICE McDash as of 9/01/2025.
Evaluating prices per $1,000 of protection for repeatedly current and newly originated loans reveals an attention-grabbing perception: loans that had been repeatedly in existence from 2014 to 2025 have larger common prices than newly originated loans yearly. This sample means that by actively participating in insurance coverage coverage and deductible choice — as new homebuyers are inclined to do — many householders with longstanding loans might considerably scale back their insurance coverage prices.
Determine 3. Common hazard insurance coverage prices per $1,000 of protection over time for 3 mortgage cross-sections. Supply: ICE McDash as of 9/01/2025.
To request entry to the entire 10-year evaluation How are insurance coverage prices altering for U.S. householders? A visible perspective, please click here.
