Homeowners insurance costs have shot up 70% since 2021. Here's why.

Homeowners insurance rates are rising across the U.S., driven by climate change, rising cost of building materials and surging home prices.

Almost half of property insurance policy holders in the U.S. said their premiums rose over the past year, the highest rate of increases in more than a decade, according to a study this week from data analytics company J.D. Power.

Average homeowners insurance costs have risen nearly 70% over the past five years, according to data from ICE Mortgage Technology. On average, single-family homeowners with a mortgage now pay $2,370 a year for their property policy. In 2025, homeowners insurance costs rose have risen most sharply in California, where premiums in Los Angeles were up 19.5% compared to a year ago, according to the loan analytics firm.

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