Home Insurance Costs Are Rising Fast. Here's What It Means If You're Buying or Selling in Ohio
Home Insurance Costs Are Rising Fast. Here's What It Means If You're Buying or Selling in Ohio.
By Amy Warren, Ohio REALTOR®
Everyone talks about mortgage rates and home prices when they think about the cost of buying a house. The line item that is quietly becoming just as important, and that far fewer buyers think to check before writing an offer, is homeowners insurance. Premiums have climbed sharply nationwide over the last several years, and while Ohio is in a better position than most states, the trend is showing up here too. Here is what is actually happening and what it means whether you are buying, selling, or just staying put.
The National Picture
The average U.S. home insurance premium rose 24% between 2021 and 2024, according to theConsumer Federation of America, outpacing overall inflation by 11 percentage points over the same span. Looking ahead,Insurify projectsaverage premiums will climb another 4% in 2026, pushing the national average to roughly $3,057. A survey conducted by insurer Kin for its inaugural Homeownership Trends Report found that 82% of homeowners expect their premiums to rise again in 2026, with 16% bracing for increases of more than 10%.
This is not just an abstract cost. Insurance is showing up as a real factor in how people decide where and whether to buy. Nearly half of homeowners surveyed, 49%, said insurance costs weigh "very heavily" or "seriously" on their purchasing decisions. About a third said they are not confident they will be able to maintain adequate coverage through the year.
Where Ohio Stands
The good news is that Ohio remains one of the more affordable states for home insurance. Average annual premiums here run around $2,106, roughly 40% below the national average, largely because Ohio does not face the hurricane, wildfire, or major flood exposure driving costs up in states like Florida, California, and Louisiana. That relative affordability is a real advantage for Ohio buyers compared to what buyers face in higher-risk states.
That said, Ohio is not immune to the broader trend. Tornado and straight-line wind events in western and central Ohio generate the largest share of weather-related homeowners claims statewide, and those claims have been gradually pushing local premiums higher even as Ohio stays cheaper than the national average. If you have noticed your own renewal notice creeping up over the past couple of years, you are not imagining it.
Why This Matters More Than Buyers Expect
Insurance premiums are typically rolled into your monthly mortgage payment through an escrow account, which means a higher premium has the same effect on your budget as a higher mortgage rate: it reduces how much home you can actually afford at a given monthly payment. Yet insurance is often the last thing buyers think to check, usually happening in the final days before closing rather than before an offer is even written.
Lenders require proof of bindable homeowners insurance before they will fund a purchase loan. In high-risk states, a meaningful share of purchase loans have fallen through entirely over insurance cost or availability. That is far less common in Ohio, but it is not zero, particularly for older homes, homes with an aging roof, or properties with a claims history that an insurer flags during underwriting. Getting a real insurance quote for a specific property early in your search, rather than after you are already under contract, can save you from an unpleasant surprise close to closing. For a fuller picture of what closing actually involves, seeWhat Happens at Closing in Ohio: A Step-by-Step Guide.
What This Means If You Are Buying
Before you fall in love with a specific home, especially an older one, it is worth getting a preliminary insurance quote so the number is baked into your budget from the start rather than discovered at the eleventh hour. Roof age and material matter enormously to insurers in Ohio given wind and hail exposure, so a home with an aging roof may carry a higher premium than a similar home nearby with a newer one, even if the purchase prices are identical. That is a detail worth factoring into your offer and your negotiations. For a broader breakdown of what buying a home actually costs beyond the purchase price, seeThe True Cost of Buying a Home in Ohio.
What This Means If You Are Selling
If your home has an older roof, prior storm damage, or other conditions that could affect insurability, it is worth knowing that going into your listing rather than being surprised by it during a buyer's underwriting process. A roof replacement or other proactive repair before listing can sometimes pay for itself by keeping a deal from stalling over an insurance issue discovered late in the transaction. If you are weighing what is actually worth fixing before you list,The Ohio Home Maintenance Checklist is a useful starting point for prioritizing.
Frequently Asked Questions
How much has home insurance gone up in 2026?
The average U.S. home insurance premium rose 24% between 2021 and 2024, according to the Consumer Federation of America, outpacing inflation by 11 percentage points over the same period. Insurify projects average premiums will climb another 4% in 2026, reaching roughly $3,057 nationally. A survey by insurer Kin found 82% of homeowners expect their premiums to rise in 2026, with about 16% expecting increases of more than 10%.
Is home insurance expensive in Ohio compared to other states?
No, Ohio remains one of the more affordable states for home insurance, with average annual premiums around $2,106, roughly 40% below the national average due to moderate overall weather risk. However, tornado and straight-line wind events in western and central Ohio generate the largest share of weather-related homeowners claims statewide, and those claims have been gradually pushing local premiums higher even as Ohio stays cheaper than the national average.
Can rising insurance costs delay or derail a home closing?
Yes. Lenders require proof of bindable homeowners insurance before they will fund a purchase loan, and in some high-risk states a meaningful share of purchase loans have fallen through over insurance cost or availability. In Ohio this is less common, but it is still a real risk for older homes, homes with outdated roofs, or properties with a history of claims. Getting an insurance quote early in the process avoids last-minute surprises.
How does home insurance affect what I can afford to buy?
Insurance premiums are typically rolled into your monthly mortgage payment through escrow, so a higher premium directly reduces how much home you can qualify for at a given budget. Nearly half of U.S. homeowners, 49%, say insurance costs weigh heavily on their purchasing decisions. Getting a real insurance quote for a specific property before writing an offer gives a more accurate picture of the true monthly cost.
Want Help Factoring Insurance Into Your Budget?
I work with a handful of Ohio insurance agents I trust who can turn around a real quote quickly, before you write an offer, so there are no surprises later. Reach out at[email protected]and I will connect you.
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Amy Warren is a licensed Ohio REALTOR® serving buyers and sellers across Plain City, Dublin, Powell, and Central Ohio. She started her real estate career in 2016 as a Transaction Coordinator in Denver, where she helped close over 650 transactions before relocating to Central Ohio in 2022 and earning her Ohio license in 2025. Visit amywarrenohiorealtor.com.
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