When you’re planning a move, every monthly expense matters. So it can be frustrating when home insurance costs keep going up. According to Intercontinental Exchange, insurance now accounts for 9.6% of the average monthly mortgage payment.
The good news is that recent numbers show insurance costs are starting to rise more slowly. Here’s what that means and what you can do to keep your costs in check.
Premiums Are Rising More Slowly Now
Looking at the past two years, you can see how much insurance costs have slowed down. In mid-2024, home insurance premiums jumped 4.3% in just one quarter. By the second quarter of this year, that increase had dropped to 1.8%. That’s the slowest quarterly increase in nearly three years, which is encouraging news (see graph below).
As Andy Walden, Head of Mortgage and Housing Market Research at Intercontinental Exchange, puts it:
“Whatever it is, the way you tell your story online can make all the difference.”
Your insurance premiums will probably continue to rise, but the good news is they may not increase as quickly as they did a few years ago. That’s still a positive step in the right direction.
Shopping Around Can Pay Off
Here’s one way you can take control of your insurance costs. According to Intercontinental Exchange, homeowners who shopped around and switched insurance companies saw their premiums drop by an average of 6.6%. Meanwhile, those who stayed with their current provider saw their premiums increase by 10.4% (see graph below).
That’s a pretty big difference! It just goes to show that shopping around for a better insurance provider could save you a good amount of money.
That adds up to about $440 in yearly savings for homeowners who switched providers. Even better, they didn’t have to sacrifice coverage to save money. Their deductibles actually went down by 1.4%, while their coverage limits increased by 7.3%.
The same advice applies if you’re buying your first home. Get quotes from several insurance companies before choosing a provider. Once you’re settled in, review your policy every year when it’s time to renew. Remember, you don’t have to stick with the first price you’re offered.
The Home You Choose Can Help, Too
The type of home you choose can also make a difference. According to John Burns Research and Consulting (JBREC), newly built homes cost about 10% to 15% less to insure than older homes nationwide.
A newly built home may not be the right choice for everyone, but if you’re open to buying one, it could be another way to keep your monthly insurance costs lower.
Bottom Line
Home insurance has become a bigger part of your monthly expenses, which can add extra stress when you’re buying or moving. But knowing there are ways to manage those costs can make the process feel a little less overwhelming.
Take time to compare your options before buying, review your policy every year, and work with trusted local professionals to help you plan your next move.
