Home insurance premiums up 9%, coverage trails
By: Jarrod Barry | Published: 2025-08-04 10:00:00 | Source: www.nationalmortgagenews.com
Homeowners already stretched by high mortgage payments may be strained even more by another escalating expense: homeowner’s insurance.
The average premium for a new policy has climbed to $1,966 in 2025, a 9.3% jump from last year and more than 61% higher than five years ago, according to online insurance agency Matic. At the same time, average policy coverage has risen just 35.8% since 2020, leaving many households paying more for less protection.
For some, the strain is severe.
“Homeowners are dedicating a larger portion of their monthly mortgage payments to insurance, with some borrowers reporting that over half of their payments now go to insurance and taxes,” the report said.
These costs are limiting purchases, pushing some to consider selling, and in some cases making it harder…
