Quick answer: A renewal increase is the new premium minus the old one. In the example, $2,400 rising to $2,880 is $480 a year, a 20% increase, or $40 a month. Before you accept, check whether the coverage or deductibles changed, since that changes what you are paying for.
Worked example (made-up numbers)
This year you pay $2,400 a year. The renewal is $2,880.
- Yearly change: $480 more.
- Percent change: 20%.
- Monthly change: $40 more a month. If insurance is paid through your escrow, the escrow payment rises by about this amount once the servicer adjusts it.
Now assume premiums rise 4% a year after this renewal. Over five years, with the renewal price as year one, the total is about $15,600. That is about $3,600 more than five years at $2,400. The 4% is an assumption for illustration, not a forecast for your policy.
What the national data show
The U.S. Bureau of Labor Statistics publishes a producer price index for homeowners' insurance, which tracks the prices insurers charge. It rose more than 5% in the 12 months to August 2026. It is a national average, so it does not show your policy's change, and it does not predict your renewal. Your state, your home and your insurer change the result.
Before you accept the renewal
- Check the dwelling coverage. If the rebuild cost went up, your limit may need to rise too, and that changes the premium on its own.
- Check whether wind, hail and flood are included, and whether they are separate policies.
- Check the deductible. A percentage deductible, such as 1% or 2% of home value, can cost far more than a flat deductible when you file a claim.
- Get at least one other quote with the same coverage, so you compare like with like.
Questions people ask
My premium went up but I did not file a claim. Why?
Premiums can reflect many things, including your area, rebuilding costs and the insurer's own pricing. Ask the insurer for the reasons in writing.
Should I shop around at renewal?
Yes, if you can compare the same coverage. Get at least two quotes with the same dwelling limit, deductibles and covered perils.
What is a percentage deductible?
A deductible set as a percent of your home's insured value. For example, 2% on a $400,000 home is $8,000 before the insurer pays a wind or hurricane claim.
Where this does not apply
If the increase came from a coverage change you asked for, such as a higher limit or a lower deductible, the new premium buys something different, and the percentage is not a fair comparison. If you changed carriers or lost a discount, compare the policies line by line. A higher dwelling limit may be the right change even though it raises the premium.
To run your own numbers, use the insurance renewal calculator, and compare quotes side by side in the Free Toolbox. Planners and workbooks are on our shop page.
Last reviewed: November 3, 2026.
This article is general educational information, not financial, legal, tax or insurance advice.
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