Shopping for Homeowners Insurance With a Mortgage, as ICE Finds Switchers Cut Premiums 6.6%

Shopping for homeowners insurance has paid off for borrowers with a mortgage: homeowners who switched carriers in the year covered by ICE's September 2026 Mortgage Monitor cut their premiums by a record 6.6% on average, while those who stayed with their existing insurer saw costs rise 10.4%, according to Intercontinental Exchange, the mortgage data and technology company known as ICE.

The gap amounted to about $440 a year, ICE said, and switchers did not give up protection to get it. Their deductibles fell 1.4% and their coverage limits rose 7.3%, according to the report. The 6.6% reduction was the largest savings ICE has recorded since it began tracking the data in 2013.

Why is shopping for homeowners insurance worth it?

Insurance has become one of the fastest-growing parts of a monthly mortgage payment. In ICE's September 2026 report, the average single-family mortgage holder paid a record $209 a month for property insurance, nearly 80% more than at the start of 2020, and insurance accounted for 9.6% of the average monthly payment. Annual cost growth had slowed to 8.7% from a peak of 15.1% at the end of 2024, and the second-quarter increase of 1.8% was the smallest quarterly gain since ICE began tracking the measure. About two-thirds of the increase over the 12 months ICE measured came from higher coverage limits rather than higher prices per $1,000 of coverage.

ICE's data show the savings vary widely by market. Insurance takes up as much as 24.3% of the average mortgage payment in New Orleans and as little as 4.3% in San Jose, and some of the fastest annual increases were in Greenville, South Carolina, Honolulu and Minneapolis, according to the report.

How do you switch homeowners insurance when you have a mortgage?

For borrowers with a mortgage, insurance is not optional. Lenders require hazard coverage on the home as a condition of the loan, and most borrowers pay it through an escrow account, in which the servicer collects a portion of the annual premium with each monthly payment and pays the insurer when the bill comes due. Because of that arrangement, changing carriers involves the mortgage servicer as well as the insurance companies.

The process generally begins with comparing quotes for equivalent coverage, including the dwelling limit, the deductible and any separate wind, hail or water endorsements, so that a lower price is not simply the result of less protection. Once a new policy is chosen, the borrower asks the new insurer to list the mortgage servicer as the mortgagee on the policy, using the clause and loan number found on a mortgage statement or the old policy's declarations page. The new policy should take effect before the old one is canceled so the home is never uninsured, and the servicer should receive proof of the new coverage, typically the declarations page, so it pays the correct carrier from escrow.

What happens if your coverage lapses?

A lapse can be costly. Federal mortgage servicing rules allow a servicer to buy coverage on a borrower's behalf, known as force-placed or lender-placed insurance, when it cannot confirm that the home is insured, and that coverage is often more expensive and narrower than a policy the owner would buy. Under the Consumer Financial Protection Bureau's Regulation X, a servicer must send a written notice at least 45 days before charging a borrower for force-placed insurance and a reminder at least 15 days before the charge. If the borrower then shows that coverage was in place, the servicer must cancel the force-placed policy within 15 days and refund any premiums for overlapping coverage.

When a policy is canceled midterm, the old insurer usually refunds the unused portion of the premium. A change in the annual premium will also flow into the servicer's next escrow analysis, which can lower the monthly payment when the new policy costs less or produce an escrow shortage when it costs more.

Frequently asked questions

How much did homeowners save by switching insurance carriers?

Switchers cut their premiums by a record 6.6% on average, while those who stayed with their existing insurer saw costs rise 10.4%, a gap of about $440 a year, according to ICE.

Who needs to know when I change homeowners insurance?

The mortgage servicer. The new insurer should list the servicer as the mortgagee, and the servicer should receive proof of the new coverage, typically the declarations page, so it pays the correct carrier from escrow.

What is force-placed insurance?

It is coverage a servicer can buy on a borrower's behalf when it cannot confirm that the home is insured. It is often more expensive and narrower than a policy the owner would buy, and Regulation X requires notices at least 45 days and 15 days before the borrower is charged.

Sources

• Intercontinental Exchange, "ICE Mortgage Monitor: Property Insurance Costs Rise 8.7% Annually, but Rate of Growth Is Sharply Slowing," Sept. 10, 2026: https://mortgagetech.ice.com/resources/data-reports/september-2026-mortgage-monitor
• Consumer Financial Protection Bureau, Regulation X, 12 CFR 1024.37, "Force-placed insurance": https://www.consumerfinance.gov/rules-policy/regulations/1024/37/