The Home Insurance Move That Could Save You $440 a Year

When planning a move, every monthly cost counts, and home insurance has been one of the more frustrating ones. According to Intercontinental Exchange (ICE), insurance now makes up 9.6% of the average monthly mortgage payment.

The latest data shows some relief on the pace of increases, and it also shows that homeowners have more control over this cost than many assume.

Premiums Are Rising More Slowly Now

Over the past two years, the pace of increases has cooled noticeably. In mid-2024, property insurance costs rose 4.3% in a single quarter. By the second quarter of 2026, quarterly growth was down to 1.8%, the smallest in almost three years (see graph below):

Andy Walden, Head of Mortgage and Housing Market Research at ICE, explains:

“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.”

Premiums are still rising. ICE puts the annual increase at 8.7%, and insurance reached a record average of $209 a month in the second quarter. But the slower pace is a step in the right direction for anyone budgeting for a purchase.

Shopping Around Can Pay Off

This is where homeowners have real leverage. ICE found that homeowners who shopped around and switched insurance companies saw their premiums drop 6.6% on average, while those who stayed with their current company saw an increase of 10.4% (see graph below):

That works out to about $440 a year in savings for those who switched compared with those who stayed. And they did not have to give up coverage to get it. Their deductibles dipped 1.4%, and their coverage limits actually rose 7.3%.

The same principle applies to buyers. Get several quotes before choosing a provider, and once settled in, review the policy every year at renewal. The first price is not the price for life.

What To Compare Besides the Premium

The cheapest quote is not always the better policy. When comparing options, it helps to line up the details that determine what a claim would actually pay:

• Deductibles. Some policies use a flat dollar deductible, while others use a percentage of the home's insured value for certain events like wind or hail. A percentage deductible can mean a much larger out-of-pocket cost.
• How the roof is covered. Some policies pay to replace a damaged roof at today's cost, while others pay a depreciated value based on the roof's age. That difference can be thousands of dollars.
• Dwelling coverage limits. The limit should reflect what it would cost to rebuild the home, which is not the same as its market value.
• Discounts. Bundling policies, security systems, and recent roof or system updates can lower the premium, but they are not always applied automatically.

Comparing quotes on these points, not just the monthly number, is how buyers avoid saving a little now and paying much more after a claim.

The Home Itself Affects the Premium

According to John Burns Research and Consulting (JBREC), newly built homes are about 10% to 15% less expensive to insure than older homes nationally. A brand-new home will not be the right fit for every buyer, but for those open to one, it can be one more way to keep monthly costs down.

For existing homes, the condition of the major systems often matters as much as age. The roof in particular can drive both price and eligibility with many insurers, along with the age and condition of the electrical, plumbing, and heating systems. A newer roof or updated systems can make a meaningful difference in what a home costs to insure.

When To Get Insurance Quotes During a Purchase

Timing is where many buyers get caught off guard. A quote obtained after the inspection period ends leaves little room to react if the premium is much higher than expected or a carrier declines to cover the home. A better sequence:

1. Ask for rough quotes while shopping, especially on older homes, to build a realistic monthly budget.
2. Get firm quotes as soon as a home is under contract, and share the inspection report with insurance agents if they ask about roof or system condition.
3. Factor the quote into the inspection response. If a roof issue is driving up the premium, that may belong in the repair or credit negotiation.
4. Confirm coverage well before closing, since lenders require proof of insurance.

Christopher Munkel's multigenerational background in construction and homebuilding shapes how Munkel Real Estate Solutions looks at this. Understanding how a roof, foundation, or older system is likely to affect insurability helps buyers ask better questions during inspections and negotiate with the full monthly cost in view. Insurance questions themselves belong with a licensed insurance professional.

Bottom Line

Home insurance is a bigger part of monthly housing costs than it used to be, but it is not a fixed number. Compare quotes before buying, revisit the policy every year, and factor the home's age and condition into the decision from the start.

Sources: Intercontinental Exchange (ICE) Mortgage Monitor; John Burns Research and Consulting (JBREC).