Article Summary
ICE Mortgage Monitor data shows U.S. property insurance costs hit a record in Q2 2026, averaging $209 a month, or 9.6% of the mortgage payment. Costs rose 1.8% from Q1 and 8.7% year over year, with coverage limits driving most of the annual increase.
AI Summary
Property insurance costs for U.S. homeowners reached another record high in the second quarter, but the pace of increases is beginning to slow, according to Intercontinental Exchange (ICE)’s September 2026 Mortgage Monitor report released Thursday.
The average single-family mortgage holder paid $209 a month for property insurance in the second quarter, accounting for 9.6% of the average monthly mortgage payment. That figure is nearly 80% higher than at the start of 2020, according to ICE.
Insurance costs rose 1.8% from the first quarter, the smallest quarterly increase since ICE began tracking the metric.
“Property insurance has been a fast-growing component of the monthly mortgage payment, but this quarter’s data shows the pace of increase is finally slowing,” Andy Walden, head of mortgage and housing market research at ICE, said in a statement.
On an annual basis, insurance costs rose 8.7%, down from an 11.4% increase at the start of the year and a peak of 15.1% in late 2024.
Higher coverage limits accounted for about two-thirds of the annual increase. Coverage limits rose 5.5%, while the cost per $1,000 of coverage increased 3%.
The shift marks a change from 2024, when higher pricing accounted for most of the growth in insurance costs.
Insurance costs continue to vary significantly by market. Property insurance accounts for 24.3% of the average mortgage payment in New Orleans, compared with 4.3% in San Jose.
Some of the largest annual increases were recorded in Greenville, South Carolina, where costs rose 15.8%; Honolulu (+14.7%); Minneapolis (+13.1%); and the California markets of Sacramento and San Diego, where costs increased by about 12%.
Many of the markets with the fastest increases have been affected by hurricanes, wildfires and hail. Miami and New Orleans, which have the nation’s two highest average insurance costs, recorded some of the smallest annual increases.
Homeowners who switched private insurance carriers also saw meaningful savings, according to the report. Those who changed carriers over the past year reduced their insurance payments by an average of 6.6%, the largest savings level ICE has recorded since it began tracking the data in 2013.
By comparison, homeowners who stayed with their existing carrier saw premiums rise 10.4%.
Those who switched saved an average of $440 a year compared with homeowners who stayed with their carriers. They also secured lower deductibles, which fell 1.4%, while coverage limits increased 7.3%.
“The sharp differences we’re seeing across markets highlight the value of having both the data to understand where costs and risks are changing and technology that can help address them,” Bob Hart, president of mortgage technology at ICE, said in a statement.
This article was generated using HousingWire Automation and reviewed by a HousingWire editor before publication.
