Key Takeaways
- Homeowners insurance premiums hit a record $2,412 annually in 2025, up 71.8% since 2019.
- Insurance costs now affect mortgage qualification and are rising faster than all other housing expenses.
- Analysts project 5-8% annual premium increases through 2030, forcing STR operators to adjust underwriting models.
Average monthly homeowners’ insurance premiums are continuing to skyrocket.
In 2025 alone, they rose nine percent.
Since 2019, homeowner insurance premiums have risen more than 70 percent, outpacing every other component of mortgage payments, including principal, interest, and property taxes, according to ICE Mortgage Technology data.
They reached $2,412 annually on average in 2025, the highest on record, per the data.
That number hits harder for short-term rental investors who are trying to make a profit after covering expenses.
For STR operators in high-risk markets like Florida, Texas, and Colorado, the squeeze is tighter.
STR operators face compounding cost pressures
Higher insurance costs are affecting the mortgage process by increasing borrowers’ debt-to-income ratios and delaying closings, with some borrowers no longer qualifying when insurance premiums push monthly housing costs higher.
Average deductibles rose 22% in 2025, shifting more risk onto property owners who operate Airbnb and Vrbo listings.
Parts of Florida and Texas posted annual declines in insurance costs in 2025, with Cape Coral, Florida, seeing premiums fall 6.1 percent and El Paso, Texas, down 5.6 percent. But most markets saw continued increases.
Related: Wister and Freewyld partner on insurance gaps
Most analysts expect homeowners’ premiums to rise by around 5 percent to 8 percent annually through 2030, with premium increases continuing to outpace overall inflation and wage growth.
STR operators acquiring properties today need to model insurance at 8-10% annual growth, not the 3-5% that held for decades.
