Home Insurance Rates Rising 2X Faster Than Inflation [LendingTree Report]

Home insurance costs are rising nationwide, and they’re significantly outpacing both inflation and income growth. From 2020 through 2025, regulator-approved home insurance rates rose 45.8% nationally, while inflation rose 26.1%. 

Key findings:

• Nationally, the gap between home insurance rate hikes and inflation reached 19.7 percentage points from 2020 through 2025, or nearly double (about 1.8X) inflation. 

• The biggest gaps came in 2024: home insurance rates rose 12.5% versus 2.9% inflation, meaning insurance rates skyrocketed at around 4.3 times the inflation rate.

• In 44 states and Washington, D.C., home insurance rate increases outpaced inflation, led by Colorado, Iowa and Minnesota.

• It’s not just inflation: from 2020 through 2024, home insurance rate increases outpaced median household income growth in all but nine states.

You can find our state-by-state breakdown of where home insurance rates are outpacing inflation here: https://www.lendingtree.com/insurance/rates-inflation-income-study/ 

According to LendingTree’s home insurance expert and licensed insurance agent, Rob Bhatt:

“Rising home insurance costs are having a ripple effect on household budgets. Homeowners insurance is essential, and rising costs can cut into necessities like groceries, utilities and even mortgage payments.”

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