Buying a Home? Here's What You Should Know About Home Insurance Costs.

Most buyers walk into the process watching two numbers: the mortgage rate and the price of the home. Homeowners insurance rarely gets the same attention. That is a mistake, because insurance has quietly become one of the fastest moving costs of owning a home, and it can change what a buyer can actually afford.

The cost is real, but the story is not all bad. Premiums are still climbing, but the pace of those increases is finally starting to slow. Here is what that means for anyone planning to buy.

Insurance Has Become a Bigger Line Item

The sticker shock is widespread. Data from the Pew Research Center shows 71% of homeowners say their insurance costs have gone up over the past few years. When affordability is already stretched, another rising expense lands hard.

Here is the part buyers miss: insurance is not a one time closing cost. The first payment is usually rolled into closing, but after that it becomes a permanent part of the monthly housing bill, sitting right next to the mortgage payment, property taxes, and any HOA dues. It also affects buying power directly, because lenders count the insurance premium in the monthly payment they use to qualify a borrower. A higher premium can quietly lower the price range a buyer qualifies for, which is why this number deserves attention long before closing.

Premiums Are Still Rising, Just Not as Fast

The headlines focus on how expensive insurance has gotten, and they are not wrong. But the direction of the trend matters as much as the number. According to the latest report from Rate Insurance, 2025 brought the first slowdown in annual premium increases since 2019 (see graph below):

That does not mean premiums are getting cheaper. It means the steep climb of the last several years may be easing. For a buyer, a slowing cost is easier to plan around than one that jumps unpredictably. It does not remove insurance from the budget, but it makes the budget more reliable.

Location Drives the Bill More Than Almost Anything

Insurance is priced on risk, and risk is local. Areas that file more claims, whether from storms, wildfires, or flooding, carry higher premiums. Two nearly identical homes in two different states can carry very different insurance costs. Forbes data offers a rough picture of typical premiums by state. On the map below, the darker the blue, the higher the costs tend to run:

For buyers in the Kansas City area, this is worth taking seriously. The metro sits in a part of the country that regularly sees severe storms, hail, and high winds, and that risk profile is one of the factors insurers weigh. The actual premium still depends on the specific address, the age and condition of the home, the roof, and the coverage chosen, which is why a real quote on the real property beats any statewide average. A licensed insurance professional is the right person to run those numbers.

What a Buyer Can Actually Control

Location and market conditions are fixed. Preparation is not. Insurify and NerdWallet point to several ways to bring a premium down:

• Shop around. Quotes from different carriers on the same home can vary widely.
• Bundle policies. Combining home and auto with one carrier often lowers both.
• Ask about discounts. Many go unclaimed simply because no one asked.
• Highlight upgrades. A newer roof, updated wiring, or storm windows can cut the rate.
• Strengthen your credit. In most states a stronger credit profile earns a better premium.

Get the Quote Before the Offer, Not After

The single most useful move is one many buyers skip: get an insurance quote before writing an offer, not after going under contract. Waiting until the loan is already in process turns insurance into a surprise, and surprises at that stage are the ones that strain a budget or a closing.

Pulling a quote early does three things. It produces a true monthly payment instead of an estimate, so the affordability math is honest. It flags an expensive to insure property, such as one with an aging roof or a history of claims, before that cost is locked in. And it protects negotiating room, because a buyer who already knows the full carrying cost is not forced to renegotiate or walk away late in the deal. At Munkel Real Estate Solutions, mapping the full monthly cost of a home, insurance included, is part of deciding how much to offer, not a detail left for the paperwork at the end.

The Bottom Line

Homeowners insurance has moved from a footnote to a real part of the buying decision. It does not have to become a source of stress. The buyers who handle it well do three simple things: they learn what to expect, they get a real quote early, and they build that number into the budget before they commit to a house. Knowing the full cost of ownership up front is what keeps a purchase comfortable long after the keys change hands.

Sources: Pew Research Center, Rate Insurance, Forbes, Insurify, and NerdWallet.