Could You Be Paying Too Much for Homeowners Insurance?

When was the last time you shopped around for homeowners insurance?

If you’re like a lot of homeowners, you probably compared several companies when you bought your house, chose a policy, and haven’t thought much about it since. Each year, the renewal notice arrives, the premium changes, and you keep paying. But that might be costing you more than you realize.

Recent research suggests that homeowners who compare insurance options may find meaningful savings. With the cost of owning a home continuing to put pressure on household budgets, it’s worth taking a closer look.

Homeowners Insurance Is Taking a Bigger Bite Out of the Budget

According to Intercontinental Exchange (ICE), homeowners insurance now accounts for about 9.6% of the average monthly mortgage payment. That’s a significant expense when you add it to property taxes, maintenance, utilities, and everything else that comes with owning a home.

There is some encouraging news. National insurance premium increases have started slowing down. In mid-2024, premiums were increasing at a quarterly rate of 4.3%. By the second quarter of 2026, that rate had dropped to 1.8%.

That doesn’t mean your insurance bill is going down. It means the pace of increases has slowed nationally. Here in North Texas, factors like hail, wind damage, roof age, and your home’s location can still make a real difference in insurance costs.

Could Shopping Around Save You Money?

Here’s the part of the research that caught my attention.

ICE found that homeowners who switched insurance companies experienced an average premium decrease of 6.6%, while those who stayed with their existing companies saw an average increase of 10.4%. For homeowners who switched, that worked out to approximately $440 in annual savings.

Those are national averages, not a promise that everyone can save $440. Your results will depend on your home, your coverage, and the insurance options available to you. But it certainly makes a good case for getting a few quotes before your next renewal.

Interestingly, homeowners who switched didn’t necessarily sacrifice coverage to save money. On average, their deductibles decreased slightly while their coverage limits increased.

Don’t Compare Premiums Without Comparing Coverage

This is particularly important for homeowners in North Texas. Suppose you receive two insurance quotes, and one is $400 less per year. That sounds like an easy decision, but what if the less expensive policy has a much higher wind and hail deductible?

Or what if one policy provides replacement cost coverage for your roof while the other pays actual cash value, which accounts for depreciation? Those differences could become expensive if you ever need to file a claim.

Before changing companies, make sure you understand:

• What your policy covers and excludes
• Your deductible, particularly for wind and hail damage
• Whether your roof is covered at replacement cost or actual cash value
• Your coverage limits and whether they’re appropriate for your home
• Available discounts and any restrictions in the new policy

You don’t have to become an insurance expert, but you do need to know what you’re buying. I’ve put together a resource called Understanding Homeowners Insurance that explains coverage options and some of the things to consider when choosing a policy. It’s a good starting point if you haven’t reviewed your coverage in a while.

What About People Buying a Home?

If you’re planning to buy a home, insurance deserves attention before closing. Two similarly priced homes may have very different insurance costs, particularly when their roofs differ in age or condition.

National research from John Burns Research and Consulting suggests that newly built homes can cost approximately 10% to 15% less to insure than older homes. That’s not true in every situation, but it’s another reason I encourage buyers to get insurance quotes early, before their lender finalizes the monthly payment.

One More Reason for an Annual Homeowner Checkup

Most of us understand the importance of maintaining our homes. We service our air conditioners, check for plumbing leaks, and take care of repairs before they become bigger problems. But when was the last time you reviewed the financial side of owning your home?

That’s one of the reasons I offer my Annual Homeowner Checkup. It’s an opportunity for us to sit down, look at how your home’s value may have changed, discuss improvements you’ve made, and talk about some of the responsibilities that come with homeownership. Reviewing your insurance is one of those things worth keeping on your annual checklist.

I’m not an insurance agent, but I can encourage you to ask the right questions and help connect you with someone who can review your options. My goal isn’t just to help people buy or sell a house. I want to continue being a resource long after closing.

A Little Time Could Be Worth the Effort

If your homeowners insurance is coming up for renewal, take a little time to review it. Ask about available discounts, get a couple of additional quotes, and compare the coverage carefully.

You might save money, or you might discover that your current policy is still your best option. Either way, you’ll have a better understanding of how your home is protected.

And if you’d like to schedule an Annual Homeowner Checkup, I’d be glad to sit down with you. You can reach me through rob-hurt.com.

Research source: Keeping Current Matters, November 2, 2026, citing Intercontinental Exchange and John Burns Research and Consulting.