Property Insurance Costs Soar to Record Highs in 2024
According to the ICE Mortgage Monitor, property insurance costs for mortgaged single-family homes experienced a record surge in 2024. This increase is largely attributed to the escalating costs associated with losses from natural disasters.
Key Findings from the ICE Mortgage Monitor:
- The average annual property insurance premium rose by a record $276 (14%), reaching $2,290 in 2024.
- This is the largest single-year increase since 2013 when ICE began tracking the metric.
- The 2024 increase follows a $245 (14%) increase in 2023, resulting in a 61% ($872) rise over the past five years.
- Property insurance costs are now the fastest-growing component of monthly home payments compared to principal, interest, and property taxes.
- The total average mortgage payment (principal, interest, taxes, and insurance – PITI) increased by 6% last year.
- The 14% rise in property insurance costs significantly outpaced the 8% increase in interest payments and the 5% rise in property taxes among all outstanding mortgages.
- While all other components experienced increases, the principal paid on the average mortgage remained flat from 2023.
- Over the past five years, principal, interest, and tax payments have increased by 21-22% among the active mortgage population—roughly one-third of the rise in property insurance costs.
This data underscores the growing financial strain on homeowners, highlighting the impact of unpredictable natural events on the real estate market. Further details are available in the full ICE Mortgage Monitor report.
