The average American homeowner is paying $2,966 per year for home insurance in 2026, according to The Zebra's 2026 State of Insurance: Home report, which analyzed rates from 180 companies across all 34,500 U.S. ZIP codes and surveyed 1,875 homeowners.

Rates continue to rise, driven by three primary factors: inflation and supply chain disruptions pushing up building material and labor costs, an increase in extreme weather events, and the dynamics of state-level insurance regulation. In 2025, there were 23 weather and climate disasters that each caused at least $1 billion in damages.

State-level variation is substantial. Florida homeowners pay the most at $9,449 per year, followed by Oklahoma at $5,534 and Mississippi at $5,514. Vermont and Hawaii post the lowest averages, at $1,087 and $732, respectively, though The Zebra notes Hawaii's figures exclude mandatory hurricane coverage.

Home age also affects pricing. Homes built between 2021 and the present carry an average annual premium of $1,429, compared to $2,230 for homes built between 1971 and 1990. The report notes that 40% of first-time homebuyers purchased a home built in 2020 or later.

First-Time Buyer Profile

The report includes a spotlight on first-time homebuyers, drawing on an oversample of 375 respondents. First-time buyers currently represent 21% of the market, a record low, and the median age of first-time buyers has reached a record high of 40. The median down payment for first-time buyers is 10%, compared to 23% for repeat buyers.

Affordability is the dominant concern for this group. Forty-six percent listed affordability or cost as their top priority when buying a home, ranking above location (37%), neighborhood safety (36%), and home condition (35%). Additionally, 47% of first-time buyers said a premium increase in the coming year would make it difficult to afford their mortgage.

Shopping Behavior

First-time buyers are shopping for coverage more actively than the general homeowner population. They obtained an average of 2.3 quotes before purchasing, and 39% got three or more quotes. Furthermore, 62% plan to shop for insurance again within the next 12 months, compared to 39% of general homeowners.

First-time buyers also show a stronger preference for direct online channels. Thirty-three percent go directly to an insurance company's website first, compared to 26% of general homeowners. Twenty percent use online comparison websites, versus 13% of general homeowners.

Coverage Confusion and Supplemental Interest

When asked which policy elements they found hardest to understand, first-time homeowners most frequently cited coverage limits (37%) and deductibles (36%). General homeowners, by contrast, most often cited exclusions (33%).

On supplemental coverage, 83% of first-time homeowners said they were considering adding coverage beyond a standard policy for events such as floods, earthquakes, or hurricanes. The leading motivation was peace of mind, cited by 65% of that group, followed by increased risk in their area (41%) and a friend or neighbor experiencing a related loss (40%).

The National Association of State Workforce Agencies (NASWA) has recognized Experian with its Outstanding Performance Award for the third straight year. The award, presented at NASWA's annual UI SIDES Seminar in Denver, Colorado, highlights Experian's work combating fraud and supporting unemployment insurance (UI) program integrity through the State Information Data Exchange System (SIDES).

About the Award

NASWA presented the honor in recognition of Experian's use of SIDES, a web-based platform that helps employers reduce administrative burden, manage unemployment claims, and mitigate fraud risk. SIDES is a core component of Experian's broader unemployment management solution.

"Helping employers navigate complexities of unemployment insurance while strengthening fraud prevention remains a focus for Experian," said Steve Solovic, senior vice president of operations for Experian Employer Services. "Being recognized by NASWA for a third consecutive year highlights our commitment to delivering solutions that improve efficiency, decision making and compliance for both employers and state agencies."

Experian at the UI SIDES Seminar

Each year, the UI SIDES Seminar draws hundreds of state workforce representatives, employers, and third-party administrators to discuss emerging trends and challenges in unemployment insurance. At this year's event, Solovic moderated several panel discussions, including a state of the states plenary session and a session titled "Protecting the Path: Fraud Detection with SIDES."

Other Experian Employer Services leaders also participated. Michael Orton, managing director of payroll tax consulting, and Rebecca Mills, senior director of tax operations, both presented on the Top 10 Employer Tax Issues. Tonya VanKnowe, senior director of unemployment management, led a session titled "Elevating the UI Experience."

Experian Employer Services

Experian Employer Services provides solutions for HR, payroll, and tax professionals. Its offerings include:

• Tax Credits
• I-9 Management
• Tax Withholding
• Compliance Library
• Pay Statements
• Verification Fulfillment
• Tax Statements
• ACA Reporting
• Unemployment Management

For more information, visit experian.com/employer-services.

Experian is a global data and technology company listed on the London Stock Exchange (EXPN) and a member of the FTSE 100 Index. The company employs 25,200 people across 33 countries, with corporate headquarters in Dublin, Ireland. Learn more at experianplc.com.

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• Quote turnaround time drops from hours to minutes
• Quote volume increases by as much as 25%
• Outsourcing needs decrease by as much as 76%

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