Property insurance costs for mortgaged single-family homes increased a record $276 – or 14% – to an average of $2,290 per year in 2024, according to ICE Mortgage Technology’s latest Mortgage Monitor report.
Average premiums have increased $872 – or 61% – over the past five years, the firm says.
Among the major U.S. cities, Seattle (+22%), Salt Lake City (+22%) and Los Angeles (+20%) saw the largest percentage increases in 2024, while the largest increases by dollar amount were in Dallas (+$606) and Houston (+$515).
Property insurance premiums in Florida increased by less than half the national average on a percentage basis, but rates there remain among the highest in the country.
A record 11.4% of borrowers switched carriers in 2024, up 2 percentage points from 2023, likely due to a combination of rising non-renewal activity and borrowers shopping for lower premiums.
“While it’s no surprise that insurance costs are rising, we’re beginning to see emerging trends in terms of how homeowners are responding to the higher cost environment,” says Andy Walden, head of mortgage and housing market research for ICE, in the report. “We’re seeing increases in both the share of borrowers switching policies and borrowers taking on higher deductibles as a way to combat rising premiums.”
“ICE loan-level data shows that a record 11.4 percent of borrowers switched insurance providers in 2024, up from 9.4 percent in 2023 and less than 8 percent historically,” Walden says. “While this has undoubtedly been driven by rising non-renewal rates, it may also be a sign of borrowers switching providers in search of lower premiums.”
Markets with the highest insurance costs, which have also been the focal point of non-renewal activity in recent years, unsurprisingly have the highest percentage of borrowers switching providers. Nearly a quarter of mortgage holders in Miami, for example, switched insurance providers in 2024, the highest share of any major market, followed by New Orleans and Orlando (both 23%).
“The average borrower switching policies in Miami paid slightly more, but in most markets with higher-than-average turnover, borrowers who switched are paying less than those that stayed put,” Walden says. “For example, in Jacksonville, Dallas, San Antonio and Denver, homeowners who switched paid at least 10% less, on average than borrowers who remained with their old carrier.”
“California, where insurers have been reducing their footprint due to strict regulations and rising wildfire risk, stands out as a notable exception,” Walden adds. “Borrowers who switched providers in San Diego, Sacramento, San Francisco, Los Angeles and San Jose all paid at least 15% more, on average, than those who stayed put.”
Separate research from the ICE Climate team suggests borrowers taking out mortgages in recent years may also be taking on higher deductibles to help offset rising premiums.
Homeowners who took out mortgages in 2024, for example, had a 19% ($390) higher deductible than the average single-family mortgage holder. That same group had 12% ($284) lower annual insurance premiums than the market at large.
“As borrowers become more interested in shopping for the best insurance rates, there is an emerging opportunity for lenders and servicers to meet this need with embedded insurance comparison tools both at the front end of the pipeline and for people with existing mortgages,” Walden says. “ICE’s integrations with insurance providers in both our origination and servicing platforms have been aimed at exactly this opportunity as part of our continuing goal of making home finance as simple and transparent as possible.”
Photo: Library of Congress