The news: Home insurance has become the fastest-growing bill of owning a home. A new study by Zillow and Thumbtack, released on October 22, 2026, finds that US homeowners insurance premiums have risen 54% in the past five years — and in several big metros, annual insurance bills now exceed property taxes. The typical US homeowner pays about $16,566 a year (roughly $1,380 a month) for maintenance, property taxes and insurance on top of the mortgage, reported by RISMedia on October 23, 2026.
In this guide
The headline numbers: insurance up 54% in five years
The Zillow/Thumbtack report puts the average US homeowner's insurance bill at about $2,266 a year — but averages hide the real story. Insurance premiums have climbed 54% over the past five years, driven by more frequent and more destructive storms, higher rebuilding costs and rising labor and materials prices. Nationally, property taxes still average a bit more, at roughly $3,129 a year — but insurance is closing that gap fast, and in many local markets it has already overtaken it.
Where insurance now beats property taxes
The report names the metros where premiums have surged the most. The biggest five-year jumps are in Dallas, Texas (up about 75%), Tampa, Florida (about 71%), Denver, Colorado (about 70%) and Houston, Texas (about 69%). The highest absolute bills land in Miami, Florida, where homeowners now pay nearly $5,000 a year — up roughly 62% in five years. Miami, Dallas, Houston, Tampa, Orlando and Denver all now top $3,000 a year in insurance premiums alone.
This echoes a separate Bloomberg Intelligence analysis (reported October 20, 2026) that found home insurance now exceeds the average property-tax bill in two-thirds of US counties — with hail and winter weather pushing rates up across the Midwest and Mountain West, led by Colorado, Utah and Minnesota. Claims Journal's writeup of that analysis notes homeowners in the Southeast, where property taxes are low, can see insurance run 2.5 to 4 times the local tax levy. If you are buying in one of the high-jump metros, our guide to home insurance for first-time buyers covers what to insure first and which extras are worth the money.
The biggest hidden cost is not insurance — it is maintenance
Despite the insurance surge, the report found that upkeep remains the largest hidden cost of homeownership: households typically spend about $11,171 a year on maintenance — roughly two-thirds of the total hidden costs. The most expensive markets blow past that average: Seattle homeowners spend about $12,594 a year on maintenance, and Boston about $12,486. Total hidden costs are highest in New York ($25,111), San Francisco ($24,383), Los Angeles ($22,915), Boston ($22,096) and Seattle ($21,354).
There is one mildly encouraging signal: Thumbtack's home trends expert Kendra Sinclair noted that the pace of maintenance-cost growth is slowing, and that "planning for regular upkeep throughout the year can help prevent bigger repair bills and protect your savings when something unexpected happens." Deferred maintenance is the hidden cost that becomes a claim — a worn roof that finally leaks is an insurance problem, not just a repair bill.
What it means for buyers, owners and renters
For buyers: rising hidden costs are already showing up in deal activity. Redfin data cited in the report found buyer cancellations at post-pandemic highs, with about 14.5% of buyers dropping out of deals — and the average 30-year fixed mortgage still sits in the mid-7% range, so financing has not softened much either. If insurance in your target metro has risen 50–75% in five years, a quote pulled at pre-approval may be stale by closing: get fresh insurance quotes before you go firm.
For current owners: if your premium has been climbing every renewal, you are not alone — and loyalty is expensive. In markets where insurers are competing again (Texas officials recently reported downward rate pressure — see our writeup of Texas's 2026 rate trend), shopping around can recover hundreds of dollars a year. Raising your deductible, bundling home and auto, and documenting wind- and hail-mitigation upgrades are the levers most owners underuse.
For renters on the fence: renting is getting relatively cheaper, at least for now. Realtor.com's September data showed the US median asking rent at $1,694 — the 38th consecutive year-over-year decline. Economist Jiayi Xu cautions that rents are still well above pre-pandemic levels and the relief ahead may be limited, but for price-sensitive households in the highest-cost metros, renting remains the safer near-term bet while insurance bills keep climbing.
What to do now: 6 steps
- Quote insurance before you fall in love with a house. Premiums vary wildly by city and even by neighborhood (flood zones, wildfire zones, hail belts). Get at least three quotes for the specific address before making an offer. Our home insurance estimator gives a quick ballpark to sanity-check quotes against.
- Re-shop your existing policy every year. With premiums up 54% in five years, last year's renewal rate is almost certainly beatable. Auto-quote tools take minutes; an independent agent can check regional carriers too.
- Raise your deductible deliberately. Moving from a $1,000 to a $2,500 deductible often cuts premiums 10–20%. Only do it if you have the difference in emergency savings.
- Budget 1–3% of home value per year for maintenance. The report's $11,171 average is roughly 2.5% of a typical home's value — the textbook rule of thumb still holds. A roof, water heater and HVAC system all age on schedule; funding them ahead of time beats emergency repairs.
- Ask about mitigation discounts. In storm-prone metros, hail-resistant roofs, hurricane shutters, storm straps and updated electrical/plumbing can earn meaningful credits. Photograph upgrades and send proof to your insurer.
- Compare total cost of ownership, not just the mortgage. Add insurance, taxes, maintenance and HOA fees to the mortgage payment. If that total exceeds a comfortable rent-plus-savings alternative in your market, renting another year is not losing — it is strategy.
Frequently asked questions
Is home insurance really more expensive than property taxes now?
In many markets, yes. The Zillow/Thumbtack report found insurance now exceeds property taxes in several large metros — including Miami, Dallas, Houston, Tampa, Orlando and Denver, where annual premiums top $3,000. A separate Bloomberg Intelligence analysis found insurance above the property-tax bill in about two-thirds of US counties. Nationally, the average property-tax bill (roughly $3,129 a year) still edges out the average insurance bill (roughly $2,266), so check your specific county, not the US average.
Why have home insurance premiums risen 54% in five years?
The report points to more frequent and more destructive weather (storms, hail, hurricanes, winter freeze events) plus higher rebuilding costs — labor, roofing and building materials all cost more. In Florida and Texas the rise also reflects outsized reinsurance costs and insurer losses; in the Mountain West, hail and winter-weather claims are the main driver.
What are the "hidden costs" of homeownership, exactly?
Per the Zillow/Thumbtack study: maintenance (about $11,171 a year, two-thirds of the total), property taxes (about $3,129 a year) and homeowners insurance (about $2,266 a year) — totaling roughly $16,566 a year, or $1,380 a month, on top of the mortgage. Homeowners association fees and utilities sit on top of that.
Is it cheaper to rent or buy in 2026?
It depends heavily on the market. Median asking rent has fallen to about $1,694 (Realtor.com, September 2026) while mortgage rates remain in the mid-7% range and insurance premiums keep rising — so renting looks relatively better than it did a few years ago, especially in the highest-cost metros. The honest answer is local math: add mortgage + insurance + taxes + maintenance, and compare against rent plus what you could save or invest with the difference.