Buying a Home? What You Should Know About Homeowners Insurance Costs

If buying a home is on your radar, you’re probably paying close attention to home prices, mortgage rates, and your monthly payment. But there’s another important expense you’ll want to factor into your budget: homeowners insurance.

Insurance has always been part of the cost of owning a home, but premiums have increased significantly in many areas over the past few years. When buyers are already working hard to make homeownership affordable, an unexpected insurance bill can make a big difference.

The good news is that recent data suggests insurance premium increases are beginning to slow. That doesn’t mean costs are coming down, but it may signal some relief for homeowners and buyers.

Here’s what you should know before purchasing a home.

Home Insurance Costs Have Increased

If you’ve heard friends or family talk about their homeowners insurance premiums going up, you’re not alone.

According to data from the Pew Research Center, 71% of homeowners say their insurance costs have increased over the past few years.

While rising insurance costs can be frustrating, knowing about them ahead of time can help you plan a more realistic homebuying budget.

Homeowners insurance is typically included in your closing costs through your initial premium and escrow setup. After closing, your insurance payment may become part of your monthly mortgage payment if your lender requires an escrow account.

That’s why it’s important to look beyond the purchase price when determining what you can comfortably afford.

Premiums Are Still Rising, But the Pace Has Slowed

Much of the conversation around homeowners insurance has focused on how much more expensive coverage has become. And while premiums are still increasing, there is some encouraging news.

According to recent data from Rate Insurance, 2025 marked the first slowdown in annual homeowners insurance premium increases since 2019.

That doesn’t mean insurance is suddenly getting cheaper. Instead, it suggests that the rapid pace of increases seen over the past several years may be beginning to ease.

For buyers, that’s worth keeping in mind—but your individual insurance costs will depend heavily on where you live and the property you purchase.

Where You Buy Can Make a Big Difference

Homeowners insurance costs can vary dramatically from one location to another.

Factors such as weather risks, claim history, construction costs, local regulations, and the likelihood of natural disasters can all influence premiums. Even two homes in the same general area can have different insurance costs based on their age, condition, roof, construction type, and other features.

Your insurance premium will ultimately depend on the location, the home itself, the coverage you choose, and the insurance company you use.

For buyers in South Georgia, getting a quote for the specific property you’re considering is much more useful than relying on a national average.

A Few Ways You May Be Able to Save

You can’t control every factor that determines your insurance premium, but there are steps you can take to shop smarter.

Here are a few strategies recommended by insurance and personal finance experts:

Shop around. Get quotes from multiple insurance companies rather than automatically choosing the first option.

Ask about bundling. If you already have auto insurance, see whether combining your policies could save you money.

Look for available discounts. Ask your insurance provider about discounts you may qualify for based on the home, security features, policy type, or other factors.

Consider the home’s condition. Features such as a newer roof, updated electrical or plumbing systems, storm-resistant improvements, and other upgrades may affect your insurance costs.

Maintain good credit. In states where credit-based insurance scoring is permitted, a stronger credit profile may help you qualify for better rates.

Get an Insurance Quote Before You Make an Offer

One of the smartest things you can do as a homebuyer is get an insurance quote before you make an offer.

You may know exactly what the home's purchase price and estimated mortgage payment will be, but your actual monthly housing costs could look very different once property taxes, homeowners insurance, HOA fees, and other expenses are included.

Getting an insurance quote early gives you a clearer picture of what owning the home will actually cost—and can help you avoid surprises after you're under contract.

An experienced insurance professional can also help you understand your coverage options and determine what makes sense for your particular situation.

The Bottom Line

Homeowners insurance is an important part of the homebuying equation, and it’s a cost buyers shouldn’t overlook.

While insurance premiums have increased in recent years, the pace of those increases may be beginning to slow. More importantly, getting informed early can help you make a smarter decision about the home you buy and the budget you set.

Before making an offer, get an insurance quote for the property, factor that cost into your monthly budget, and work with trusted local professionals who can help you understand the full picture.

At Dove Realty, we believe buying a home should feel exciting—not overwhelming. Having the right information before you make a decision can give you greater confidence throughout the process.