Rising Property Insurance Costs Linked to Mortgage Delinquencies

New data shows higher premiums may be a significant factor behind mortgage delinquency rates

Mar. 12, 2026 at 9:08pm

Got story updates? Submit your updates here. ›

According to a new report from mortgage data firm Intercontinental Exchange (ICE), rising property insurance costs have contributed to higher mortgage delinquency rates. The average annual home insurance payment rose by 6.6% in 2025, reaching a record $201 per month. Homeowners whose property insurance accounted for the largest portion of their annual housing costs were delinquent 7.6% of the time, compared to a 2.9% delinquency rate for those with the smallest insurance portion.

Why it matters

Rising insurance costs are straining household budgets and may increase the risk of missed mortgage payments. For homeowners, higher premiums could directly affect financial stability, with more of their housing expenses going toward property insurance.

The details

Since 2019, home insurance costs have risen by 72%, more than twice the growth seen in other subcategories of principal, interest, taxes, and insurance. However, there are some signs of moderation, with the increase in costs in 2025 being the slowest since 2020. One reason for the slowdown is that home prices are flattening, and another is that more people are finding new insurance policies, with policy switching hitting an all-time high in 2025.

  • Home insurance costs have risen 72% since 2019.
  • The average annual home insurance payment rose by 6.6% in 2025, reaching a record $201 per month.
  • Policy switching hit an all-time high in 2025, with 11.4% of homeowners finding new policies, up from the pre-pandemic average of around 8%.

The players

Intercontinental Exchange (ICE)

A mortgage data firm that released a report on the relationship between rising property insurance costs and mortgage delinquency rates.

Andy Walden

The head of mortgage and housing market research at ICE, who commented on the report during a recent webinar.

Got photos? Submit your photos here. ›

What they’re saying

“As more of homeowners' housing expenses go toward property insurance, the more likely they are to be past due on payments.”

— Andy Walden, Head of Mortgage and Housing Market Research (ICE)

What’s next

The report suggests that rising property insurance costs may continue to be a factor in mortgage delinquency rates, and homeowners may need to explore options to reduce their insurance expenses, such as shopping for new policies or taking advantage of any available discounts.

The takeaway

This report highlights the significant impact that rising property insurance costs can have on household finances and the risk of mortgage delinquency. As insurance premiums continue to rise, homeowners may need to carefully manage their budgets and explore ways to mitigate the financial strain, such as finding new insurance providers or taking advantage of any available discounts.