Honestly, if you've looked at your homeowners insurance renewal lately and felt like someone made a typo with an extra zero, you aren't alone. It’s a mess out there. Even though we’re hearing a lot of chatter about the market "stabilizing" in 2026, the reality on the ground feels a lot different for the average person in Florida, California, or Texas.
Property insurance news us has been dominated by a weird paradox lately. On one hand, big insurance companies are finally making money again. On the other, your premiums are probably still going up. It's weird. It’s frustrating. And frankly, it’s expensive.
The 2026 Rate Reality Check
Let’s get the numbers out of the way. Between 2022 and 2025, the average cost of home insurance in the U.S. jumped by a staggering 62%. We went from paying around $1,582 to over $2,500 for the same $350k house.
Now, the "good" news hitting the wire is that the rate of growth is slowing down. Instead of the 18% or 20% jumps we saw a couple of years ago, many experts are predicting a more modest 3% to 8% increase for 2026.
But let’s be real: an 8% increase on a premium that already doubled is still a massive hit to the wallet.
For some people, the news is actually better. In Florida, Governor DeSantis just announced that Citizens Property Insurance (the state’s insurer of last resort) is actually cutting rates by an average of 8.7%. If you’re in South Florida, you might see even more of a dip. That’s a huge shift after years of the state’s insurance market being on life support.
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Why the Math Doesn't Add Up for Your Wallet
You’d think that if the insurance companies are healthy, your bill would go down. It doesn’t work like that. There are three big ghosts haunting the property insurance news us world right now that keep rates high.
1. The "Rebuild" Lie (or Mistake)
Have you noticed that your insurance company thinks it costs $600,000 to rebuild your $400,000 house?
Texas brokers are calling this out right now. They’re seeing models where insurers use 6% to 9% inflation values for projected rebuild costs, even as actual construction inflation slows. If the "replacement cost" is overinflated, your premium stays high because the company is technically "covering" more value than exists.
2. The Tariff Factor
This is a new one for 2026. With new tariffs on Canadian lumber and Mexican steel, the cost of building materials is spiking. Insurance companies see those headlines and think, "Great, if a roof blows off, it's going to cost us 20% more to fix it than it did six months ago."
They bake that risk into your premium immediately.
3. Secondary Perils Are the New Hurricanes
We used to only worry about the "Big One"—a massive Category 5 hurricane. But 2025 was the year of "secondary perils." We’re talking about massive hail storms in the Midwest and those "convective storms" that basically drop a lake’s worth of water on a town in twenty minutes. These smaller, frequent events cost insurers $108 billion globally last year.
California and the "Sustainable Insurance Strategy"
California is always its own animal. Starting January 1, 2026, a bunch of new laws pushed by Commissioner Ricardo Lara kicked in. The goal is to stop the "insurance desert" where companies like State Farm and Allstate just stop writing new policies altogether.
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The trade-off? The state is finally letting insurance companies use "forward-looking" catastrophe models and bake the cost of reinsurance into their rates.
Translation: It’s going to be easier to find a policy, but it’s definitely going to cost you more.
There is a silver lining, though. The new Safer from Wildfires regulations mean companies have to give you a discount if you do the work—clearing brush, upgrading your roof, and ember-resistant venting. It’s not just a "nice to have" anymore; it’s a legal requirement for them to recognize your mitigation efforts.
AI Is Watching Your Roof (Literally)
If you see a drone hovering over your neighborhood, it might not be a hobbyist. It might be your insurance company.
One of the biggest pieces of property insurance news us homeowners are dealing with is the "AI inspection."
Companies like CAPE Analytics are now providing ultra-high-res satellite and drone imagery to insurers. They aren't just looking at your house; they’re using AI to count the number of granules missing from your shingles or checking if that "temporary" blue tarp from two years ago is still there.
Honestly, it’s a bit creepy. But they’re moving toward a world where inspections are 100% remote. The problem is that AI can be wrong. It might see moss and think it’s structural rot.
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The Rise of the "Shadow" Market
Because traditional companies like Farmers or State Farm have pulled back in high-risk areas, a huge chunk of Americans are moving to the Excess & Surplus (E&S) market.
In states like California and Texas, E&S policies went from being 2% of the market to over 16% in just two years.
E&S is basically the "Wild West" of insurance. They aren't bound by the same state rate caps. They can charge whatever they want, and they can change the rules on a whim. It’s a lifeline, but a very expensive one.
How to Not Get Robbed by Your Renewal
If you’re staring at a massive bill, don’t just pay it.
- Audit your "Replacement Cost": If your insurer says it costs $300 a square foot to rebuild but local contractors say $220, call your agent. Challenge the valuation.
- The 10-Year Roof Rule: If your roof is over 11 years old, your premium gap can be hundreds of dollars compared to a new one. Some people are finding that the insurance savings over three years actually pay for a significant chunk of a new roof.
- Check for "Hidden" Discounts: Ask about the "Strengthen Washington Homes" or "Safer from Wildfires" equivalents in your state. Many states are launching grant programs in 2026 to help you pay for the upgrades that lower your rates.
- Shop the E&S Market: If you’re in a "high risk" zone, don't just settle for the state FAIR plan. New MGAs (Managing General Agents) are entering the market in 2026 with fresh capital and might give you a better deal than the government-backed "last resort" options.
The market is shifting, and for the first time in years, the "soft market" (where companies compete for your business) is starting to peek through the clouds. It’s not a total win for homeowners yet, but the era of 20% annual hikes might finally be cooling off.
Take Action Now
Don't wait for the renewal notice to arrive 30 days before it’s due. Contact an independent broker today—not a "captive" agent who only sells one brand—and ask for a comprehensive market review. Specifically, ask them to check if your property qualifies for any new legislative discounts that went into effect this month.