Property insurance has made up a significant portion of homebuyer costs over the years, and premiums are only continuing to grow. According to a recent report from housing market data and technology provider Intercontinental Exchange (ICE), property insurance costs for mortgaged single-family homes increased by a record $276, or about 14%, to $2,290 in 2024. On average, premiums are up by about 61% over the past five years.
Seattle and Salt Lake City saw the highest spike in insurance premiums at 22%, followed by Los Angeles at 20%. However, the largest increases by dollar amount were in Dallas and Houston, where costs rose by $606 and $515, respectively.
“While it’s no surprise that insurance costs are rising, we’re beginning to see emerging trends in terms of how homeowners are responding to the higher cost environment,” said Andy Walden, Head of Mortgage and Housing Market Research for Intercontinental Exchange. “We’re seeing increases in both the share of borrowers switching policies and borrowers taking on higher deductibles as a way to combat rising premiums.”
“ICE loan-level data shows that a record 11.4% of borrowers switched insurance providers in 2024, up from 9.4% in 2023 and less than 8% historically,” Walden added. “While this has undoubtedly been driven by rising non-renewal rates, it may also be a sign of borrowers switching providers in search of lower premiums.” Read more
