Home Insurance Is Getting Cheaper: How to Lock In Savings

Home insurance is still expensive.

But the market may be turning a corner.

According to Matic’s 2026 Mid-Year Home Insurance Report, released in August 2026, more homeowners are finally seeing relief at renewal. Carrier competition is returning. Premium growth is slowing. Some insurers are becoming more willing to compete for new customers.

That is good news.

It is not a reason to assume your next renewal will be cheaper.

Nearly 9 in 10 homeowners still paid the same or more than they paid the year before. Rates remain at historic highs. In states such as Florida and California, many homeowners are still facing double-digit increases.

So what should you do?

Re-shop your policy. Check your coverage. Ask about bundling. Close gaps before you need to file a claim.

Free for you, always. Takes 60 seconds to start.

What is changing?

For several years, home insurance shoppers faced a difficult market.

Premiums climbed quickly. Some carriers reduced business in higher-risk areas. Others tightened their rules for roofs, older homes, wildfire exposure, storm risk, and property maintenance.

That made it harder to find a better policy.

Matic’s latest data points to a shift. Insurers are beginning to compete for buyers again. As carriers improve their financial position and adjust to new market conditions, they are easing some underwriting restrictions and offering more options in certain areas.

That does not mean every homeowner will get a lower price.

It means shopping may be more worthwhile than it was a year or two ago.

The best opportunity is not simply finding the lowest premium. It is finding the right coverage at a fair price.

What do the numbers say?

Matic’s report highlights several important changes during the first half of 2026.

11.7% saw a lower renewal premium

A record 11.7% of homeowners saw their renewal premium decrease during the first half of 2026.

That is the highest share Matic has ever recorded.

For comparison:

• 4.9% saw a decrease in 2024.

• 7.4% saw a decrease in 2025.

• 11.7% saw a decrease in the first half of 2026.

This is a meaningful change. More homeowners are receiving renewal offers that are lower than their previous policy term.

But keep the number in context.

About 88% of homeowners still paid the same or more than the prior year. A lower renewal is becoming more common, but it is not yet the typical result.

Renewal increases fell to 10.6%

For homeowners whose renewal premiums increased, the average increase was 10.6% in the first half of 2026.

That is still a large increase. But it is much lower than recent years:

• 28% average increase in 2024.

• 19.4% average increase in 2025.

• 10.6% average increase in the first half of 2026.

The pace is slowing.

That gives you a reason to compare your current policy with new options. Your current carrier may have raised your premium based on older market assumptions. Another carrier may now be more competitive in your ZIP code.

New-policy increases slowed to 5.9%

Premiums for new home insurance policies increased 5.9% year over year during the first half of 2026.

That is down from:

• 18.7% in 2024.

• 8.1% in 2025.

• 5.9% in the first half of 2026.

New-policy pricing is still higher than it was in prior years. But growth is slowing.

That matters when you shop. More carriers may be willing to quote your property, and the difference between your renewal offer and a new policy may be worth checking.

Why should you re-shop now?

Your renewal notice only tells you what your current carrier wants to charge.

It does not tell you what the rest of the market may offer.

Insurance pricing changes. Carrier goals change. Local risk changes. Your home changes.

A company that offered a strong price two years ago may now be expensive. Another carrier may have improved its pricing or become more willing to insure homes like yours.

Re-shopping can help you:

• Compare your renewal with current offers.

• Check whether your coverage limits still fit your home.

• Find available discounts.

• Review your deductible.

• Look for a home and auto bundle.

• Identify exclusions or missing coverage.

• Get help before a claim happens.

You do not need to spend an entire afternoon calling insurance companies.

A licensed independent agent can do the comparison work for you.

What should you review first?

Start with your current declarations page.

This is the summary of your policy. It normally lists your premium, limits, deductibles, and key coverage details.

Look at these areas.

Your dwelling limit

Your dwelling limit should reflect the estimated cost to rebuild your home. That is different from the home’s market value.

The market value includes the land, location, demand, and other factors. Rebuilding cost focuses on labor, materials, permits, cleanup, and construction.

Construction costs can change quickly. If your dwelling limit has not been reviewed recently, ask whether it still makes sense.

Do not lower this limit simply to reduce your premium. A lower limit could leave you short after a major loss.

Your roof coverage

Your roof can have a major effect on both price and claims.

Check:

• The age of your roof.

• The material used.

• Whether the policy pays replacement cost or actual cash value.

• Whether there are special roof-related limitations.

• Whether your carrier requires an inspection.

Replacement cost generally aims to pay for a covered replacement, subject to the policy terms. Actual cash value factors in depreciation. That could mean a much smaller claim payment for an older roof.

Ask a licensed agent to explain the difference in plain English.

Your wind or named-storm deductible

In some areas, wind or named-storm losses may have a separate deductible.

It may be a flat dollar amount. It may be a percentage of your dwelling limit.

That difference matters.

For example, a 2% deductible on a home insured for $400,000 would equal $8,000. Make sure you understand what you would need to pay after a covered loss.

Flood and water backup

A standard home policy may not cover every type of water damage.

Flood coverage may require a separate policy. Water backup from a drain, sump pump, or sewer may also require a separate option or endorsement.

Do not guess.

Ask what is covered. Ask what is excluded. Ask what limits apply.

Personal property

Make sure your personal property limit reflects what it would cost to replace your belongings.

Create a simple home inventory. Use your phone to record each room. Open closets and cabinets. Save photos, videos, receipts, and serial numbers in a secure cloud folder.

It does not need to be perfect.

Start with 10 minutes. Add to it later.

Loss of use

If a covered loss makes your home unsafe, loss-of-use coverage may help pay for temporary housing and certain increased living costs.

Review the limit. Consider how long repairs could take in your area.

A short repair estimate may not reflect a major regional disaster where contractors and materials are in high demand.

Can bundling lower your cost?

Often, yes.