The Home Insurance Crisis: What Every Homeowner Needs to Know in 2026

Something broke in the homeowners insurance market, and it happened faster than most people realized. Premiums jumped 33% nationally between 2023 and 2025. In Florida, Louisiana, and California, increases hit 50–100%. Some carriers pulled out of entire states. Others stopped writing new policies altogether.

This isn't a blip. It's a structural shift driven by escalating climate losses, rising rebuild costs, and an insurance industry that spent decades underpricing risk. If you own a home — or plan to buy one — understanding this market matters as much as understanding mortgage rates.

The insurance crisis has three interconnected drivers, and none of them are going away: