PLEASANTON, Calif.– Homeowners are spending a growing share of their mortgage payments on property insurance, which is now rising faster than principal, interest and taxes, according to a new report.
“Insurance costs continue to be the fastest growing subcomponent of mortgage payments among existing homeowners,” Andy Walden, head of mortgage and housing market research at ICE Mortgage Technology, said in a statement. “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 $10 spent on average mortgage-related costs,” Walden added.
Key Findings
According to ICE Mortgage Technology, key findings in its newest report include:
- Slower but steady growth: Property insurance payments rose 4.9% in the first half of 2025, driving an 11.3% increase year-over-year. That is lower than the 7.3% increase reported during the same period in 2024 but still represents historically high growth.
- Outpacing other costs: Over the past five years, insurance has climbed nearly 70%, compared to increases of 23% for principal and 27% for interest.
- Higher cost per coverage: The cost per $1,000 of coverage rose by $0.29, or 5%, over the past 12 months, and by $0.85, or 16%, since 2022. The increases show that higher premiums reflect not only rising risk but also more expensive coverage, ICE Mortgage Technology said.
- Regional differences: According to the analysis, California saw the largest increases in the first half of 2025, with Los Angeles premiums up 9% in six months and 19.5% year-over-year. Florida, which has historically had among the highest property insurance costs, showed signs of moderation with smaller increases and even some declines.
- State-backed plans: Florida has seen a sharp drop in reliance on programs, from 25% to 16% in the last 18 months. Usage of such programs is rising in California and North Carolina, ICE Technology said.
