While I don’t have a crystal ball, I can tell you my professional opinion on the coming year’s home insurance industry.
After years of being in the business, I have my finger on the pulse of upcoming changes. I keep an eye on things at all times to ensure my clients get the very best coverage at the very best price. And 2026 may have some updates you should be aware of, so let’s talk about it.
Climate Change and Technology
It may sound like a strange place to start, but two major impacts on the year’s insurance prices will revolve around climate change and technology.
As we increasingly experience extreme weather (yes, even in Minnesota), more homes are damaged during storms and floods. And because construction costs have risen dramatically, insurance companies are charging higher premiums to cover them.
Still, technology could help even this out as we go forward. With better tools for predicting weather, the ability to enter far more detailed data, and more accurate estimation software, insurance companies can better estimate the risk to your home. These advances could potentially save homeowners money, since companies can more precisely determine their likelihood of a claim.
Insurance Gaps Can be Costly
The biggest issue I see with homeowners’ insurance isn’t what they have, but what they don’t. People aren’t always prepared for the news when a policy covers only an “actual cash value” for items like roof repairs, high winds, or hail damage. I like to be sure clients are fully informed about their policy’s coverage and also help point out any areas where coverage may be lacking.
Learn more about roofing and its cost expectations in my blog here.
Disasters like flooding, hail damage, or even siding repairs can cost more than many expect. Just because you have a sensible policy doesn’t mean every incident is fully covered. Be sure to review yours and fill any gaps ahead of 2026’s cost increases.
Minimum Policy Cost Increases
Nothing in life seems to ever get cheaper, but the positive news for 2026 is that I expect very minimal rate increases. As policyholders have endured fairly hefty price hikes for the past several years, most will be relieved to hear little change is expected this year.
Inflation overall was a major culprit of the big increases over the past few years. But thankfully, things should calm as pricing stabilizes across the economy.
Your Best Protection
While no one can completely predict the future, you can prepare for it. Your best bet in preparing for 2026, and whatever it may hold, is to review your policies with a trusted agent. Together, you can get a better understanding of what really is and what may not be covered. An agent can also help you fill those concerning gaps to be sure your finances aren’t the real victim in any home damages.
As an independent agent, I can work with a variety of carriers offering a wide range of policies. This helps me find the very best fit for you. Reach out today for a no-obligation quote, and we can get you fully protected at a price that makes sense for your household.
