Property insurance accounts for 9.6% of the average monthly mortgage payment, according to the September Mortgage Monitor published by Intercontinental Exchange Inc. (NYSE: ICE).
The average single-family mortgage holder now pays $209 per month for insurance, nearly 80% more than at the start of pre-pandemic 2020 and a new record high. Insurance premiums vary widely across the country, ranging from 4.3% of the average mortgage payment in San Jose to 24.3% in New Orleans.
While property insurance costs rose 8.7% annually, ICE noted cost increases eased from 11.4% at the start of the year and a peak of 15.1% at the end of 2024. Coverage limits, which are up 5.5%, accounted for roughly two-thirds of the past year’s increase, while the cost per $1,000 of coverage rose 3%.
Some of the largest annual increases were seen in markets impacted by extreme weather: Greenville, South Carolina (+15.8%); Honolulu (+14.7%); Minneapolis (+13.1%); and Sacramento and San Diego (roughly +12%). However, Miami and New Orleans — the nation’s two most expensive insurance markets — saw among the smallest annual increases.
“Property insurance has been a fast-growing component of the monthly mortgage payment, but this quarter’s data shows the pace of increase is finally slowing,” said Andy Walden, head of mortgage and housing market research at ICE. “The 1.8% quarterly gain we saw in Q2 is the smallest since we began tracking this metric. At the same time, borrowers who shopped around saw real savings. Those who switched carriers cut their premiums by a record 6.6%, while also securing lower deductibles and more coverage than those who stayed put.”
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