Property Insurance Costs Grow 11.3%

The average annual property insurance payment for single-family mortgage holders has reached nearly $2,370 per year, according to new data from ICE Mortgage Technology. This sum accounts for 9.6% of average monthly mortgage-related expenses when factoring in principal, interest, taxes and insurance (PITI), and it marks the highest share on record.

The newly published ICE Mortgage Monitor Report for September also found average property insurance payments rose 4.9% in the first half of the year, pushing annual costs up 11.3% year-over-year. Over the past five years, property insurance costs have surged by 70%, compared to increases of 23% for principal, 27% for interest, and 27% for property taxes.

California saw the largest increases in the first half of the year, with premiums in Los Angeles up 9% in six months and 19.5% year-over-year. Florida experienced a sharp reduction in homeowners relying on state-backed insurance plans, dropping from 25% to 16% over the past 18 months, while reliance on such plans continued to rise in states including California and North Carolina.

“As property insurance costs continue to climb and account for a larger share of monthly mortgage expenses, homebuyers and homeowners are facing increased affordability pressures,” said Tim Bowler, president of ICE Mortgage Technology. “These dynamics highlight the need for better data and connectivity. At ICE, we provide insights and integrated technology that help market participants anticipate risks, manage costs and deliver more sustainable solutions for homeowners. For instance, our solutions support helping borrowers and homeowners shop for the best home insurance rates. By bringing together origination, servicing and real-time data assets with our end-to-end technology platform, we enable our clients to respond to these pressures with greater confidence and efficiency.”