4 Reasons You Should Be Comparing Your Home Insurance Quotes

Most homeowners are overpaying on home insurance — and they don't have to be.

Home insurance is one of those expenses that tends to go unquestioned for years. You set it up when you bought the house, the payment comes out automatically, and unless something goes wrong, there’s rarely a prompt to look at it again. Meanwhile, your home changes, your life changes, the market shifts.

The numbers tell the story: home insurance premiums have risen for five consecutive years, with the average American homeowner now projected to pay $3,057 per year by the end of 2026 — nearly $900 more than they paid in 2021. In 2025 alone, rates jumped 12% nationwide, with increases hitting 45 states and Washington D.C.

• $3,057 — projected average annual premium by end of 2026 (Insurify)
• +$900 since 2021 — the cumulative increase over five years, roughly a 42% jump
• Florida leads all states at $7,136–$10,240 per year — 181% above the national average
• Hawaii is the most affordable state at $601–$732 per year, 83% below average
• Six states saw rate increases of 20%+ in a single year: Minnesota (+34%), Colorado (+33%), Iowa (+28%), Nebraska (+25%), Oklahoma (+24%), and South Carolina (+20%)
• 75% of U.S. homes are underinsured — most homeowners don’t have enough coverage to fully replace their home
• 71% of homeowners say their insurance cost has increased in recent years, with 42% saying it’s gone up “a lot” (Pew Research Center, 2026)

And it’s not just the rate hikes. A striking 75% of U.S. homes are currently underinsured, meaning that in the event of a total loss, most homeowners would not receive enough to fully rebuild. The cost of not checking your policy has never been higher.

Homeowners who compare their insurance options regularly find real opportunities to reduce premiums, improve coverage, or both. Here are the four reasons most homeowners are overpaying — and what to do about each one.

The national picture: what the 2026 data actually shows

Before diving into the four reasons to compare, it helps to understand the market you’re navigating.

• $3,057 — projected average annual premium by end of 2026 (Insurify)
• +$900 since 2021 — the cumulative increase over five years, roughly a 42% jump
• Florida leads all states at $7,136–$10,240 per year — 181% above the national average
• Hawaii is the most affordable state at $601–$732 per year, 83% below average
• Six states saw rate increases of 20%+ in a single year: Minnesota (+34%), Colorado (+33%), Iowa (+28%), Nebraska (+25%), Oklahoma (+24%), and South Carolina (+20%)
• 75% of U.S. homes are underinsured — most homeowners don’t have enough coverage to fully replace their home
• 71% of homeowners say their insurance cost has increased in recent years, with 42% saying it’s gone up “a lot” (Pew Research Center, 2026)

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The good news: rate increases are beginning to slow in many markets. AM Best upgraded the home insurance market segment from negative to stable in December 2025. But individual homeowners won’t automatically see relief — especially those who haven’t compared recently.

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