Why Your Home Insurance Premium Went Up

Say you are a retired church secretary who has had the same insurer for 22 years and never filed a claim. Your renewal comes in far higher than last year's. You wonder whether you are being charged more because of your age.

Probably not. This guide explains how a premium is set, what pushed prices up across the country, and the rules insurers follow. It also looks at why the increase can feel heavier on a fixed income. For what a policy covers, see What Homeowners Insurance Is, and What You Get for It.

How a premium is set

Your premium is the price of your policy. Insurers set it mainly from facts about the house and where it sits. The national association of state insurance regulators lists these factors¹:

• What it would cost to rebuild. This is the cost of labor and materials to build the house again, not what it would sell for. It is the starting point for the price.
• Where the home is. That includes the risk of fire, wind, hail, or other disasters nearby, and how close the fire department and a water source are.
• The age and condition of the house. The premium is often higher for older homes and homes in poor condition. The type and age of the roof matter too.
• Claims history. Your past claims, and claims on homes in your area, can raise the price.
• Credit. In many states, insurers use a credit-based insurance score, a rating built from your credit information. A few states ban it².

Your age is not on that list. The regulators' factors are about the house, its location, claims, your coverage choices, and credit, not how old you are. Still, some insurers offer a discount starting around age 50, though the age varies by insurer, so it is worth asking³.

Why prices went up

Nationally, homeowners premiums rose 62% from 2019 to 2024. The average homeowner with a mortgage paid about $2,300 in 2024⁴. Several causes added up.

• Rebuilding costs. Economists Benjamin Keys and Philip Mulder found that higher construction costs explain slightly more than half of the rise in premiums from 2020 to 2023⁵. The cost to rebuild the structure of a house rose nearly 30% over five years⁶.
• Disaster risk priced more closely. Insurers tied prices more tightly to each area's disaster risk. That explains nearly 20% of the increase⁵.
• Reinsurance. This is insurance that insurers buy for themselves, to cover very large losses. Its price rose 107% from 2019 to 2024 and has recently begun to fall⁴.
• Hail, wind, and tornadoes. Severe storms of this kind caused more than $61 billion in damage in 2025, the third year in a row above $50 billion⁶.
• Your coverage amount growing. Many policies carry an inflation guard, which raises your dwelling limit (the most the policy pays to rebuild the house) each year in line with inflation¹. It keeps coverage close to the cost of rebuilding, and a higher limit costs more.

So a bill can rise even with no claims and no change to the house. Much of the increase reflects what it now costs to repair or rebuild.

How insurers earn, and the rules they follow

Each state regulates insurance, through its insurance commissioner, superintendent, or director. Rates may not be excessive, inadequate, or unfairly discriminatory. In plain words: not so high that profits are unreasonable, not so low that the insurer cannot pay claims, and not different for similar homes without a sound reason⁷.

In 2025, about 61 cents of each premium dollar went to claims and the cost of handling them, and about 26 cents went to the insurer's expenses⁸.

Recent years were hard for insurers too: they lost money on homeowners coverage in 2017⁹ and in every year from 2020 through 2024. Then, in 2025, premiums covered claims and expenses with $16.5 billion to spare, the first such profit since 2019¹⁰. Over 1997 to 2024, premiums more than covered claims and expenses in only 8 of 28 years¹¹.

Increases are slowing. Average approved rate increases fell from 13.5% in 2024 to 7.6% in 2025 and 4.3% in the first half of 2026¹². Slower increases are still increases, and prices have not gone back down.

Why it feels heavier on a fixed income

Social Security benefits will rise 3.6% in 2027¹³. Over 2019 to 2024, premiums rose 62%. For the average homeowner with a mortgage, insurance grew from about 2% of median household income before the pandemic to about 2.7% in 2024⁴.

Harvard's Joint Center for Housing Studies notes that steep insurance increases are adding to housing cost pressures for older owners, even those with no mortgage¹⁴. Our Staying Home research looks at these pressures state by state, and at how sharing a spare room can help.

Ways to lower it

Regulators note that different insurers charge different rates for the same coverage, so getting more than one quote is worth it. Ask about discounts for smoke detectors, alarms, a new roof, or updated wiring and plumbing¹. Some states offer grants to strengthen a roof, which can also earn a discount¹⁵.

Rules and programs vary by state. See Help with housing costs, state by state, or ask your state insurance department. Our guide Lowering Your Premium Without Losing Protection goes step by step.

What can change it

A new roof or updated wiring may lower your premium. An addition, an accessory dwelling unit (a small second home on the lot), or a remodel raises what the house would cost to rebuild, and the premium can rise with it. Tell your agent about major changes.

Someone moving in can change your coverage, so read The Call to Make to Your Insurance Agent first. If the person pays rent, see Will Sharing My Home Affect My Benefits? and Taxes on Rent From a Room, in Plain Words.

Watch for

• Cutting coverage too far. A lower limit or fewer protections can save money now and cost far more after a loss.
• A deductible bigger than your savings. A higher deductible, the part of each claim you pay yourself, lowers the premium. But you pay that amount first when something happens.
• Letting the policy lapse. If the bill is a stretch, call your agent before the due date to ask about payment plans or changes.
• Unfamiliar sellers. Before buying from an agent or company you do not know, check with your state insurance department.

Conversation starters

If you are an adult child or friend talking with an older adult:

• "Would you like me to look at the renewal next to last year's with you?"
• "I can make a few calls for quotes if you'd like to compare."
• "This went up for a lot of people. Want to see what's driving yours?"

If you are an older adult talking with family or caregivers:

• "My insurance went up again, and I'd like help understanding why."
• "Before I change anything on my policy, I want a second opinion."
• "Could you help me find out whether my state has programs for a stronger roof?"

So a bill can rise even with no claims and no change to the house.

Last reviewed October 14, 2026