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%).
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