By Mike Lentz | The Mike Lentz Team - Keller Williams Realty
Compare quotes from several carriers before you buy, then review your policy at every renewal. National data shows homeowners who switched providers cut premiums 6.6% on average, while those who stayed saw a 10.4% increase. Buyers in South Jersey can also ask about newly built homes, which cost 10% to 15% less to insure nationally.
When you are planning a move, every monthly cost counts. Home insurance keeps creeping up, and that is frustrating. According to Intercontinental Exchange, it now makes up 9.6% of the average monthly mortgage payment.
The latest national numbers show some progress, because the increases are slowing down. Here is what the data says and what you can do about it.
Premiums are rising more slowly now
The past two years show how much things have cooled. In mid-2024, home insurance premiums rose 4.3% in a single quarter. By the second quarter of this year, that was down to 1.8%. That is the smallest quarterly growth in almost three years (see graph below):
Andy Walden, Head of Mortgage and Housing Market Research at Intercontinental Exchange, explains:
“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.”
Your premium will likely still go up over time. It may not climb as quickly as it did a couple of years ago.
How to save on home insurance by shopping around
This is where you have some say in what you pay. Consider current homeowners first. Intercontinental Exchange found that homeowners who shopped around and switched companies saw premiums fall 6.6% on average. Those who stayed with their current company saw an increase of 10.4% (see graph below):
The gap between those two groups is large. Looking for a new provider can pay off.
That works out to about $440 a year in savings for the people who switched. They did not give up coverage to get it. Their deductibles dipped 1.4%, and their coverage limits rose 7.3%.
What first-time buyers can do
The same approach applies if you are buying your first home. Get multiple quotes before you pick a provider. Once you are settled in, review your policy each year at renewal. You are not locked into the first price you get.
These figures are national. Rates vary by carrier, home age, and location, so a quote for a Camden County home will differ from one in Cumberland County. Quotes for your specific address are the only numbers that matter for your budget.
The home you choose can help, too
The home itself affects the premium. According to John Burns Research and Consulting (JBREC), newly built homes are 10% to 15% less expensive to insure than older ones nationally.
A brand-new home will not fit every buyer. If you are open to one, it could be another way to keep your monthly insurance costs down. Quotes are the first step in how to save on home insurance, and the age of the home is the second.
Bottom line: how to save on home insurance
Home insurance is a bigger part of monthly costs than it used to be. That adds one more number to track when you buy a home or move. Knowing you have ways to keep it in check takes some of the pressure off.
Compare a few options before you buy and revisit your policy each year. If you are buying and selling in the same move, our guide on how to sell and buy a house at the same time covers how to plan the budget on both sides.
If you want to talk through what this means for your situation, schedule a quick call and we’ll walk through it together.
For the full picture in your county, see our county market reports for Camden, Burlington, Gloucester, Salem, and Cumberland counties.
