Why Home Insurance Rates Are Rising in 2025 — And What You Can Do

Written by Heartland Bank | 7/22/25 6:36 PM

Homeowners insurance costs an average of $2,110 a year, or about $176 a month, according to NerdWallet’s analysis.

Key takeaways from NerdWallet's home insurance rates analysis

☑️ Oklahoma, Texas and Nebraska are the most expensive states for home insurance.

☑️ Hawaii, Vermont and Delaware are the least expensive states for homeowners insurance.

☑️ Travelers came in as the cheapest widely available home insurance company, with an average annual rate of $2,055. (Military insurer USAA had even less expensive policies at $1,790 per year, on average.)

☑️ American Family was the most expensive widely available home insurer, with an average annual rate of $2,745.

Why is home insurance getting more expensive?

If your home insurance premiums have gone up in recent years, you’re not alone. A majority of U.S. homeowners (54%) report that their insurance premiums have increased in the past 12 months, according to a 2025 NerdWallet survey of more than 1,300 U.S. homeowners, conducted online by The Harris Poll. Premiums have been on the rise for several years, thanks to a combination of inflation and natural disasters.

Inflation doesn't just affect gas and food prices. Homeowners insurance rates are going up because it's gotten more expensive to repair and rebuild houses after they're damaged. That's why you may see a higher homeowners premium at your next renewal, even if you haven't filed any recent claims.

Homeowners insurance rates are rising especially quickly in certain parts of the country where disasters like tornadoes, hurricanes and wildfires are growing more common.

How to reduce the cost of home insurance?

☑️ Shop around

Getting home insurance quotes annually is the best way to ensure you’re still getting the best possible deal. We recommend comparing rates from at least three companies. Make sure the coverage limits and deductibles are similar on all three policies to get a fair comparison.

If you're not up for shopping around yourself, contact an independent agent or broker to get quotes on your behalf.

☑️ Raise your deductible

A higher deductible will mean a lower rate. Raising your deductible from $1,000 to $2,500 can save you about 12% a year on average, according to NerdWallet’s rate analysis. Make sure you have enough cash tucked away to pay it if you need to file a claim.

☑️ Ask about discounts

Many insurers offer discounts to help customers get lower homeowners insurance rates, such as:

Multiple policies. If you bundle your homeowners insurance with another policy, such as car insurance, you could get a discount.
Safety and security devices. You could save money by equipping your home with fire alarms, deadbolts, security cameras and other protective devices.
Claims-free. Many insurers offer a discount to homeowners who haven’t filed a claim recently, typically in the past three to five years.

☑️ Upgrade your home

Certain renovations — such as updating an electrical or plumbing system — could lower homeowners insurance costs. Getting a new roof could also net you a discount, especially if it’s resistant to wind and/or hail.

Resource: NerdWallet.com

Questions?

Contact our Mortgage Relationship Managers for more helpful tips and advice about being a homeowner.

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