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.”