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As home insurance costs soar, the financial machinery behind the industry faces growing scrutiny.Delaware TodayA new report from LendingTree found that home insurance rates have been rising nearly twice as fast as inflation in recent years, putting a major strain on family budgets. From 2020 to 2025, home insurance rates increased by 45.8% nationwide, compared to a 26.1% inflation rate over the same period.
Why it matters
The rapid rise in home insurance rates is severely impacting housing affordability, as homeowners insurance is an essential part of homeownership. Experts attribute the trend to an increase in large-scale natural disasters as well as rising costs of building materials and labor.
The details
The report analyzed S&P Global RateWatch data for home insurance rate changes and U.S. Bureau of Labor Statistics data for inflation. It found a 19.7 percentage point gap between the 45.8% home insurance rate increase and the 26.1% inflation rate from 2020 to 2025, meaning home insurance rose about 1.8 times faster than inflation. The widest gap occurred between 2023 and 2024, when home insurance rates rose 12.5% and 10.7% respectively while inflation was only 2.9% and 3.4%.
- From 2020 to 2025, home insurance rates increased by 45.8% nationwide.
- In 2023, home insurance rates rose by 12.5% while inflation was 2.9%.
- In 2024, home insurance rates rose by 10.7% while inflation was 3.4%.
- In 2025, home insurance rates and inflation sat at 5.9% and 2.7% respectively.
The players
LendingTree
A leading online loan marketplace that compiled the report on home insurance rate increases.
Rob Bhatt
LendingTree home insurance expert who commented on the trend putting strains on family budgets.
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What they’re saying
“This trend has put strains on family budgets across the spectrum.”
— Rob Bhatt, LendingTree home insurance expert
What’s next
The report suggests that the easing of the gap between home insurance rates and inflation in 2025 may signal that home insurance prices are stabilizing and inflation is cooling.
The takeaway
The rapid rise in home insurance rates, nearly double the rate of inflation, is severely impacting housing affordability and putting major strains on family budgets. This trend is driven by an increase in natural disasters and rising costs of construction, highlighting the need for solutions to address the growing burden of homeownership.
Alice J. Roden started working for Trending Insurance News at the end of 2021. Alice grew up in Salt Lake City, UT. A writer with a vast insurance industry background Alice has help with several of the biggest insurance companies. Before joining Trending Insurance News, Alice briefly worked as a freelance journalist for several radio stations. She covers home, renters and other property insurance stories.