The Zebra, an online insurance comparison platform, has released its 2026 State of Insurance™ | Home Report, detailing the increasing costs of home insurance and the distinct challenges faced by first-time homebuyers in a competitive market.
The report indicates a shift in the profile of first-time homebuyers, who are now a smaller, older, and more cost-conscious demographic. This segment currently represents 21% of all home purchases, a decline from 24% in 2024 and 40% before 2008. Concurrently, the median age for a first-time buyer has reached a record 40 years old.
David Seider, Chief Commercial Officer at The Zebra, noted that while housing affordability is projected to improve, first-time buyers still face significant financial hurdles, particularly with rising insurance costs. He advised prospective buyers to compare quotes, regularly review their coverage, and inquire about potential discounts for new or first-time homeowners.
A national survey conducted by The Zebra provided further insights into these trends. Key findings include: 74% of respondents view homeowners insurance as a substantial part of their housing budget, and 47% indicated they would struggle with mortgage payments if premiums increased. First-time buyers anticipated paying an average of $2,692 for premiums in 2025 but ultimately paid $2,887. Additionally, 40% of first-time homebuyers purchased homes built in 2020 or later, significantly higher than the 8% of other homeowners with similar-aged properties. Amid increasing environmental threats and economic instability, 83% of first-time buyers are considering adding extra coverage to their policies in the coming year. These buyers also demonstrate savvier shopping habits, with 55% reporting a thorough review of their insurance policy, compared to 22% of other homeowners.
According to The Zebra’s data, the national average annual home insurance premium in the U.
S. stands at $2,966, an increase of almost 6% from 2025. These costs vary significantly based on factors such as a home’s age, condition, value, and location. Florida continues to record the highest premiums nationwide, averaging $9,449 annually, attributed to hurricane risks, high insurance fraud rates, and increasing operational expenses. Other states with average annual costs exceeding $5,000 include Oklahoma, Mississippi, Louisiana, and Nebraska, primarily due to the threat of wind and hail.
Seider emphasized the importance of adequate coverage in light of escalating climate risks. He recommended that individuals shop for insurance prior to making a home offer to accurately factor costs into their budget. He also suggested considering additional coverage beyond standard policies, as they may not cover risks like floods, earthquakes, or hurricanes, depending on the geographic location.
