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Homeowners insurance costs have climbed sharply across the U.S. in recent years and policyholders looking to reduce their premiums have several relatively straightforward options, CNBC reports.
Average homeowners insurance premiums increased 24% between 2021 and 2024, reaching $3,303 annually, according to a 2025 report from the Consumer Federation of America. The U.S. Treasury Department reported last year that average premiums outpaced inflation by 8.7% between 2018 and 2022.
In Louisiana and Nebraska, average premiums now exceed $500 per month, or more than $6,000 annually, according to a February report from Bankrate.
Rising home construction costs, climate-related risks and higher reinsurance expenses have all contributed to the increase in premiums.
Homeowners can take several steps to help lower their insurance costs or slow future rate increases. These include:
- Fortifying your home
- Raising your deductible
- Avoiding ‘small’ claims
- Not paying for more than you need
- Strategizing about insurers
- Improving your credit
- Weighing insurance costs when buying a home
