By Mike Lentz | The Mike Lentz Team - Keller Williams Realty
Home insurance costs have risen for most homeowners over the past few years, but the rate of increase is finally slowing down. Your premium depends on where you buy, the home itself, and the coverage you choose. Getting an insurance quote early helps you budget accurately and avoid surprises at closing.
If buying a home is on your radar, you’ve probably been keeping an eye on mortgage rates and home prices. But don’t forget about homeowners insurance. Understanding home insurance costs before you buy can save you from budget surprises later.
Homeowners insurance has always been part of owning a home. But over the past few years, it’s become a larger expense for many homeowners. That’s especially frustrating when affordability already feels tight.
The good news? While premiums are still rising, the latest data shows those increases are beginning to slow. Here’s what buyers should know.
Home Insurance Costs Have Gone Up
You’ve probably heard stories from friends or family about their premiums going up. And that’s not really a surprise when you consider data from the Pew Research Center shows 71% of homeowners say their insurance costs have gone up over the past few years.
While no one likes rising costs, knowing what to expect helps you plan ahead. Your first insurance payment is typically included in your closing costs. After that, it becomes part of your monthly housing expenses.
Getting an insurance quote early can help you build a more realistic budget. It also helps you avoid surprises later in the process.
Premiums Are Rising, But Not as Fast as They Were
Most of the headlines focus on how home insurance is getting more expensive. And that’s true. But here’s the part that’s easy to miss.
Insurance premiums are still rising. But they’re not rising as fast as they were.
According to the latest report from Rate Insurance, 2025 saw the first slowdown in annual premium increases since 2019. Take a look at the graph below:
That doesn’t mean premiums are getting cheaper. It simply means the rapid increases of the past several years may finally be starting to ease. It’s a small but welcome step in the right direction.
But what you’ll pay in one part of the country can look very different from what someone pays somewhere else. Understanding how home insurance costs vary by location is key to budgeting for your purchase.
Where You Buy Can Make a Big Difference
Insurance costs vary because some parts of the country experience more claims than others. That’s why it’s important to look at what’s happening locally.
Your premium will depend on things like where you’re buying, the home itself, and the coverage you choose. Whether you’re looking in Camden County, Burlington County, Gloucester County, Salem County, or Cumberland County, location matters.
Forbes data can give a rough idea of your state’s typical premiums. Check out the map below. The darker the blue, the higher the costs tend to be in that state:
Ways To Lower Your Home Insurance Costs
While you can’t control every cost that comes with buying a home, you can control how prepared you are. If you’re crunching the numbers and trying to find ways to save, Insurify and NerdWallet offer these tips that can help you get the best insurance price possible:
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Shop Around – Compare quotes from multiple companies.
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Bundle Policies – Combine home and auto to see if a bundle price is cheaper.
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Ask If There Are Discounts – Don’t miss out on savings you may qualify for.
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Highlight Upgrades – Features like a new roof or storm windows can cut costs.
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Improve Your Credit – A stronger credit score can mean better premiums.
One of the smartest things you can do is get an insurance quote before you make an offer. That way, you’ll know what your monthly housing costs are likely to be before you commit.
An insurance professional can walk you through your options. They can help you find coverage that fits both your needs and your budget.
Bottom Line
Homeowners insurance has become a bigger part of the homebuying conversation. But it doesn’t have to become a bigger source of stress.
The key is knowing what to expect before you buy. Get an insurance quote early and factor it into your budget. Lean on trusted local professionals to help you make the most informed decision possible. By planning ahead and understanding home insurance costs, you’ll be better prepared for homeownership in 2026.
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.
