Property Insurance Costs Continue to Rise, but Growth Begins to Moderate
Intercontinental Exchange, Inc. (NYSE: ICE), a global provider of financial-market technology, data and infrastructure, has released its September 2026 ICE Mortgage Monitor Report, highlighting continued pressure from property insurance costs on U.S. homeowners while pointing to signs that the pace of increases is beginning to ease.
According to the latest analysis, property insurance costs reached another record level during the second quarter of 2026. However, the rate at which premiums are increasing has slowed considerably compared with the elevated growth recorded in recent years.
The report also highlights a significant opportunity for homeowners to reduce their insurance expenses by actively shopping for coverage. Borrowers who changed private insurance carriers during the past year achieved an average premium reduction of 6.6%, representing the largest savings recorded by ICE since it began tracking the data in 2013.
The findings underscore the increasingly important role property insurance plays in the overall cost of homeownership and monthly mortgage payments.
Insurance Represents a Growing Share of Mortgage Payments
Property insurance has become a more significant component of the typical homeowner’s monthly mortgage expense.
ICE data shows that the average single-family mortgage holder now pays approximately $209 per month for property insurance. That represents a record level and is nearly 80% higher than at the beginning of 2020.
On average, property insurance now accounts for 9.6% of the monthly mortgage payment.
The impact, however, varies substantially depending on where homeowners live. Insurance costs are particularly burdensome in areas exposed to severe weather events and other property risks.
In New Orleans, for example, insurance represents approximately 24.3% of the average mortgage payment. By contrast, the share is just 4.3% in San Jose.
These differences demonstrate how geographic risk, property values, insurance availability and local market conditions can have a significant influence on the overall cost of homeownership.
Annual Insurance Cost Growth Slows to 8.7%
Despite reaching record levels, the rate of annual property insurance cost growth has begun to moderate.
ICE reported that insurance costs increased 8.7% year over year in the second quarter of 2026. While this remains a substantial increase, it is considerably lower than the 11.4% annual growth recorded at the beginning of the year.
It is also well below the peak annual growth rate of 15.1% recorded at the end of 2024.
The latest data suggests that the extreme pace of insurance repricing seen in recent years may be losing momentum.
On a quarterly basis, property insurance costs increased by 1.8% in the second quarter, the smallest quarterly increase since ICE began tracking the metric.
Andy Walden, Head of Mortgage and Housing Market Research at ICE, said the latest figures indicate that insurance costs are still increasing but that the pace of growth is finally slowing.
Property insurance has been one of the fastest-growing components of monthly mortgage payments in recent years, placing additional pressure on household budgets. The moderation in growth could provide some relief, although insurance expenses remain significantly higher than they were before 2020.
Coverage Limits Drive Much of the Recent Increase
ICE’s analysis also provides insight into what is driving the increase in insurance costs.
Coverage limits increased by approximately 5.5% over the past year, accounting for roughly two-thirds of the overall increase in insurance costs.
Meanwhile, the cost per $1,000 of coverage increased by approximately 3%.
This represents a notable shift from the pattern observed in 2024.
During that period, repricing — or increases in the cost of insurance relative to coverage — accounted for the majority of the growth in insurance expenses.
The more recent data suggests that higher coverage requirements are playing a greater role in increasing premiums.
Rising property values and the cost of rebuilding homes can contribute to increases in coverage limits. Insurers may need to account for higher construction costs, labor expenses and material prices when determining the amount of coverage required to replace or repair a property.
As these underlying costs change, homeowners can see their required coverage and premiums increase even when the property itself has not changed significantly.
Insurance Trends Vary Widely Across U.S. Markets
The national figures mask significant differences between individual housing markets.
Some metropolitan areas experienced substantially higher annual increases in insurance costs than the national average.
Greenville, South Carolina, recorded one of the largest annual increases at approximately 15.8%. Honolulu followed with an increase of around 14.7%, while Minneapolis recorded an increase of approximately 13.1%.
Sacramento and San Diego also experienced annual increases of roughly 12%.
Many of these markets have experienced heightened exposure to hurricanes, wildfires, hail and other severe weather events.
Such risks can affect both the availability and cost of property insurance. Insurers may adjust premiums, deductibles and coverage conditions in response to changing assessments of local risks.
High-Cost Markets See Slower Increases
Interestingly, some of the markets with the highest insurance costs experienced relatively modest annual increases.
Miami and New Orleans remain the two most expensive insurance markets in the country, according to the ICE analysis. Yet both recorded some of the smallest annual increases among the markets analyzed.
This divergence highlights the complexity of the U.S. property insurance market.
A market can have exceptionally high insurance costs while experiencing relatively limited year-over-year growth if premiums have already increased substantially in previous years.
In areas where insurance costs have already risen sharply, the latest moderation may represent stabilization at historically elevated levels rather than a return to lower premiums.
Shopping Around Can Produce Meaningful Savings
One of the most significant findings from the latest Mortgage Monitor is the financial benefit associated with switching insurance carriers.
Homeowners who switched between private insurance carriers over the past year reduced their insurance payments by an average of 6.6%.
ICE described this as the largest average reduction recorded since it began tracking the data in 2013.
The savings contrast sharply with the experience of homeowners who remained with their existing insurance providers.
Those who stayed with their current carrier experienced an average premium increase of 10.4% over the same period.
The difference means that homeowners who actively shopped for coverage and changed carriers saved approximately $440 per year compared with borrowers who remained with their existing provider.
Switchers Also Secured Favorable Coverage Terms
The savings achieved by homeowners who changed carriers were not accompanied by a reduction in coverage quality.
According to ICE, homeowners who switched carriers saw their deductibles decline by approximately 1.4%, while their coverage limits increased by 7.3%.
This combination is notable because it indicates that switching carriers did not simply reduce premiums by providing less protection.
Instead, borrowers who shopped around were able to achieve lower insurance payments while also obtaining lower deductibles and higher coverage limits on average.
The findings suggest that consumers who periodically review their insurance arrangements may be able to improve both the cost and terms of their coverage.
Data and Technology Can Improve Insurance Decisions
The divergence in insurance costs across U.S. markets highlights the importance of data and technology in helping homeowners, lenders and mortgage servicers understand changing housing expenses.
Bob Hart, President of Mortgage Technology at ICE, said the differences between markets demonstrate the value of having data that can identify changes in costs and risk.
ICE combines data, analytics and technology across multiple stages of the mortgage lifecycle.
The company’s mortgage technology includes tools designed to help borrowers shop for insurance during the mortgage process through Encompass, while Servicing Digital provides homeowners with similar capabilities after their loans have closed.
These tools can give borrowers greater visibility into their housing expenses and provide opportunities to evaluate insurance options.
For lenders and mortgage servicers, better insurance data can also help improve understanding of the costs affecting borrowers.
Implications for Mortgage Affordability
Property insurance has become an increasingly important factor in discussions about mortgage affordability.
When homeowners calculate their monthly housing costs, the mortgage principal and interest payment is only one component. Property taxes, insurance, homeowners association fees and other expenses can substantially increase the total monthly obligation.
The sharp increase in insurance costs since 2020 has therefore added another layer of pressure for homeowners.
For prospective buyers, higher insurance premiums can affect affordability calculations and purchasing decisions.
For existing homeowners, rising insurance costs can increase monthly escrow payments and household expenses even when the underlying mortgage payment remains unchanged.
The latest moderation in growth may help reduce the rate of additional pressure, but insurance costs remain substantially higher than they were several years ago.
Implications for Lenders and Servicers
The changing insurance environment also has implications for mortgage lenders and servicers.
Insurance is closely connected to mortgage servicing because lenders generally require homeowners to maintain adequate property coverage throughout the life of a mortgage.
Significant increases in premiums can affect escrow balances and monthly payments.
Servicers therefore need reliable information about insurance policies, coverage levels, premiums and changes in property risk.
ICE’s mortgage technology and property-data capabilities are designed to help industry participants better understand these factors.
Improved data can help lenders and servicers identify cost pressures while providing homeowners with more information about available options.
ICE’s Broader Mortgage Data Infrastructure
The Mortgage Monitor is supported by ICE’s extensive mortgage and property data infrastructure.
ICE manages a large repository of loan-level residential mortgage data and performance information covering the majority of the U.S. mortgage market.
The company also maintains the ICE Home Price Index, which provides measures of home prices across approximately 95% of U.S. residential properties, including data down to the ZIP-code level.
In addition, ICE maintains a broad public property-record database covering approximately 99.9% of the U.S. population and households across more than 3,100 counties.
This combination of mortgage, property and housing-market data enables ICE to analyze trends affecting homeowners and the broader housing market.
Insurance Costs Remain a Key Housing-Market Issue
The September 2026 Mortgage Monitor illustrates the increasingly important relationship between property insurance, mortgage payments and housing affordability.
While annual insurance cost growth has slowed to 8.7%, the average homeowner continues to face insurance expenses that are substantially higher than in 2020.
The 1.8% quarterly increase recorded during the second quarter represents a meaningful moderation and suggests that the rapid acceleration observed during previous years may be easing.
However, significant regional differences remain. Markets exposed to hurricanes, wildfires, hail and other risks continue to experience some of the fastest increases, while traditionally expensive markets such as Miami and New Orleans are seeing slower growth.
For homeowners, the data also reinforces the potential value of shopping around. Those who switched carriers saved an average of 6.6%, or approximately $440 annually compared with homeowners who stayed with their existing providers, while also achieving lower deductibles and higher coverage limits on average.
Technology Could Play a Greater Role in Managing Housing Costs
As insurance becomes a larger component of the total cost of owning a home, technology and data could become increasingly important tools for both consumers and financial institutions.
Homeowners can benefit from greater transparency around insurance costs, coverage and available alternatives. Lenders and servicers can use property and mortgage data to better understand the factors affecting borrower affordability and loan performance.
ICE’s latest Mortgage Monitor findings demonstrate why this information is becoming increasingly relevant.
The report points to a property insurance market that remains under pressure but is beginning to show signs of stabilization. At the same time, it highlights the potential savings available to homeowners willing to evaluate their insurance options.
For the U.S. housing and mortgage markets, the combination of moderating insurance inflation, significant regional differences and growing consumer interest in cost savings will remain an important factor in determining the broader affordability of homeownership.
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