The average annual property insurance premium among mortgaged single-family homes rose by a record $276 in 2024 to $2,290, a 14% year-over-year climb, according to a data report from Intercontinental Exchange Inc. (NYSE:ICE). Premiums are now up by 61% over the last five years.
Among the nation’s major metro areas, the largest percentage increases were recorded in Seattle (+22%), Salt Lake City (+22%) and Los Angeles (+20%) while the largest increases by dollar amount were in Dallas (+$606) and Houston ($515). Premiums in Florida increased by less than half the national average on a percentage basis, but rates there remain among the highest in the country.
“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, ICE’s head of mortgage and housing market research for ICE. “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. 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.”
Separate research from the ICE Climate team determined that homeowners who took out mortgages in 2024 had a 19% ($390) higher deductible than the average single-family mortgage holder but also had 12% ($284) lower annual insurance premiums than the market at large.
“As borrowers become more interested in shopping for the best insurance rates, there is an emerging opportunity for lenders and servicers to meet this need with embedded insurance comparison tools both at the front end of the pipeline and for people with existing mortgages,” Walden added. “ICE’s integrations with insurance providers in both our origination and servicing platforms have been aimed at exactly this opportunity as part of our continuing goal of making home finance as simple and transparent as possible.”
Subdivisions & real estate developments should consider Mutual Home Owner Policies for areas that have no fire, flood and other potential problems.