Home Insurance Now Makes Up Nearly 10% of Average Monthly Housing Costs

Property insurance costs continue to climb around the U.S., with the average insurance payment now totaling nearly $2,370 per year for single-family homes. This yearly cost now equates to approximately 9.6% of average monthly mortgage-related expenses, according to ICE Mortgage Technology’s September 2025 Mortgage Monitor. In the first half of 2025, average property insurance payments increased by 4.9%, pushing costs up by 11.3%. While costs remain high, growth has slowed slightly from the 7.3% increase seen in the first half of 2024.

“Property insurance costs continue to be the fastest growing subcomponent of mortgage payments among existing homeowners,” said Andy Walden, Head of Mortgage and Housing Market Research at ICE. “While mortgage principal, interest and property tax payments have all increased in recent years, insurance has far outpaced those gains, rising 4.9% in 2025, 11.3% annually and nearly 70% over the past five and a half years. That rapid escalation now means insurance alone consumes almost one in every ten dollars spent on average mortgage-related costs.”