If buying a home is on your radar, you’ve probably been watching mortgage rates and home prices. But there’s another important piece of the monthly housing budget that shouldn’t be overlooked: homeowners insurance.

Homeowners insurance has always been part of owning a home, but over the past few years, it has become a larger expense for many homeowners. When affordability is already top of mind, knowing what to expect can help you plan more confidently.

The good news? While insurance 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 may have heard friends or family mention that their insurance premiums have increased. According to the Pew Research Center, 71% of homeowners say their insurance costs have gone up over the past few years.

While rising costs aren’t exactly welcome news, understanding them early can help you build a more realistic budget.

Your first insurance payment is typically included in your closing costs, and after that, your homeowners insurance becomes part of your ongoing housing expenses.

That’s why getting an insurance quote early in the buying process can be helpful. You’ll have a better idea of your total monthly costs before you make a decision.

Premiums Are Rising, But Not as Quickly

Most of the headlines surrounding homeowners insurance focus on increasing premiums - and for good reason.

Insurance costs are still going up.

But there’s an important detail worth knowing:they aren’t increasing as quickly as they were.

According to the latest report from Rate Insurance, 2025 saw the first slowdown in annual premium increases since 2019 (see graph below).

That doesn’t mean insurance is becoming less expensive. It simply suggests that some of the rapid increases homeowners have experienced in recent years may be starting to ease.

And what you pay can vary significantly depending on where you live.

Where You Buy Can Make a Difference

Homeowners insurance costs aren’t the same everywhere. Areas with more frequent or expensive claims can have higher premiums, which makes understanding your local market especially important.

Your premium can depend on where you’re buying, the home itself, and the coverage you choose.

Forbes data can provide a general idea of typical homeowners insurance costs by state.

For buyers, the takeaway is simple: don’t assume the insurance cost on one home will look the same as another. Get a quote for the specific property you’re considering.

A Few Ways You May Be Able to Save

You can’t control every factor that affects your insurance premium, but there are steps you can take to potentially lower your costs.

Insurify and NerdWallet recommend strategies such as:

Shop Around – Compare quotes from multiple insurance companies.
Bundle Policies – Combining your home and auto insurance may qualify you for a discount.
Ask About Discounts – Make sure you’re taking advantage of every discount you may qualify for.
Highlight Upgrades – Improvements such as a newer roof or storm-resistant windows may help lower your premium.
Maintain Strong Credit – In some states, your credit history can be a factor in determining your premium.

One of the smartest steps you can take is to get an insurance quote before you make an offer.

That way, you can factor the cost into your overall budget and get a clearer picture of what your monthly housing expenses could look like.

An insurance professional can help you compare coverage options and find a policy that fits your needs and budget.

Plan for the Full Cost of Homeownership

When you’re buying a home, it’s easy to focus on the purchase price and mortgage payment. But the full cost of homeownership includes several other expenses, and homeowners insurance is an important one to plan for.

The more you know before you buy, the easier it is to make a decision that feels comfortable for your finances.

At the Price Group, we believe a well-informed buyer is a confident buyer. We can help you understand the local market, think through the costs that come with a purchase, and connect you with trusted professionals along the way.

Thinking about buying a home? Let’s make sure you’re looking at the full picture—not just the listing price.