A Rocks Realty Guide to Smarter Homeownership in 2026
Buying a home is one of the biggest financial moves you’ll ever make. And while most buyers focus on the down payment, mortgage rate, and monthly payment, there’s another cost that can have a major impact on affordability in Tampa Bay: homeowners insurance.
Insurance is not optional for most buyers, especially if you’re financing your purchase. And lately, premiums have been rising fast across the country, with Florida continuing to be one of the most expensive states for homeowners coverage.
The good news is this: even though insurance costs are increasing, the pace of those increases may be slowing. But that doesn’t mean buyers can ignore it. It simply means planning ahead is more important than ever.
If you’re considering buying a home in Tampa, St. Petersburg, Clearwater, or anywhere in the surrounding area, here’s what you need to know.
Why Homeowners Insurance Matters More Than Most Buyers Realize
Homeowners insurance is your financial safety net. It protects not just your house, but your entire investment. NerdWallet explains homeowners insurance as a combination of protection in three key areas:
Covers Repairs and Rebuilding Costs
If your home is damaged by a covered event, such as fire, wind damage, or storms, insurance helps pay for repairs. In serious cases, it can also help cover rebuilding costs.
Protects Your Belongings
Most policies cover personal property like furniture, electronics, clothing, and valuables if they are stolen or damaged.
Provides Liability Coverage
If someone is injured on your property, homeowners insurance may help cover medical bills or legal expenses.
In short, it protects your home, your finances, and your peace of mind.
But that peace of mind comes with a rising price tag.
Why Home Insurance Premiums Are Going Up
Insurance costs are rising across the country, and Florida is seeing some of the biggest increases.
According to the Insurance Research Council (IRC), the biggest reasons premiums are increasing come down to two major factors:
More Claims from Major Storms and Natural Disasters
Severe storms and natural disasters are happening more often, leading to more insurance claims.
Higher Building Costs
The cost of materials and labor has increased. That means when insurers pay out claims, it costs more to repair or rebuild homes than it did in previous years.
The result is simple: insurance companies raise premiums to keep up.
The Good News: The Pace of Increases Is Slowing
While premiums are still rising, recent projections suggest the pace is cooling off.
According to ResiClub and Cotality:
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In 2023 and 2024, premiums rose about 14% each year
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In 2025, premiums rose about 10%
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In 2026 and 2027, increases are projected around 8% per year
That is still an increase, but it signals that the market may be stabilizing slightly compared to the steep jumps buyers saw over the last few years.
Florida Insurance Costs Are Higher Than Most States
If you’ve been watching the news, you already know Florida is one of the most expensive states for homeowners insurance.
And in the Tampa Bay area, the cost can vary widely depending on:
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proximity to the coast
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flood zone status
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age of the home
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roof age and materials
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construction type
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wind mitigation features
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updated plumbing and electrical systems
This means two homes with the same price tag can have very different monthly insurance costs, and that can dramatically affect affordability.
For Tampa Bay buyers, insurance is no longer a “small line item.” It is a major part of the budget.
Tampa Bay Buyers: Here’s How Insurance Impacts Your Mortgage Payment
Most buyers escrow their insurance into their monthly mortgage payment. That means your monthly payment includes:
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principal and interest
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property taxes
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homeowners insurance
So even if you negotiate a great purchase price, a higher insurance premium can still push your payment above what you expected.
This is why Rocks Realty encourages buyers to get insurance quotes early, not after you fall in love with a home.
Mortgage Rates Falling Can Help Offset Rising Insurance Costs
Here’s a key point many buyers overlook.
Even though insurance costs are rising, mortgage rates have started to ease compared to recent highs. And that can help balance out the overall monthly payment.
As Michael Gaines, Senior VP of Capital Markets at Cardinal Financial, explains:
“Rising taxes and insurance do create pressure, but they don’t erase the benefits of a lower rate… A small rate improvement, paired with the right loan program and smart planning, can still make homeownership possible…”
In other words, buyers don’t need one perfect factor to fall into place. Instead, success comes from layering smart decisions together.
That includes negotiating, selecting the right loan program, and planning for insurance properly.
What Tampa Bay Buyers Should Budget for at Closing
Many buyers don’t realize their first year of homeowners insurance is often paid upfront as part of closing costs.
Depending on your lender and policy, you may pay for:
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the first year of insurance premium
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several months of escrow reserves
That can add thousands to your closing costs, which is why insurance planning is just as important as your down payment.
How To Lower Your Homeowners Insurance Costs
Even though rates are rising, buyers can still take steps to help reduce premiums.
Here are a few smart strategies recommended by Insurify and NerdWallet that work especially well in the Tampa Bay market.
Shop Around
Different companies price risk differently. Comparing multiple quotes can make a big difference.
Bundle Your Policies
Bundling home and auto insurance often leads to discounts.
Ask About Discounts
Many buyers qualify for discounts they don’t know about, including safety systems, roof upgrades, and mitigation features.
Highlight Home Upgrades
Homes with updated roofs, storm shutters, hurricane-rated windows, and wind mitigation reports can often receive better rates.
Improve Your Credit
Credit score can influence insurance pricing, so strengthening your credit profile can help reduce premiums.
A Tampa Bay Pro Tip: Roof Age Matters More Than You Think
In Florida, the roof can make or break your insurance quote.
Even if a home is beautiful inside, an older roof may cause:
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higher premiums
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limited carrier options
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lender issues during underwriting
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required roof replacement negotiations
At Rocks Realty, we often recommend buyers ask about roof age early, especially if you’re considering older homes in Tampa, Seminole Heights, South Tampa, St. Petersburg, or Gulfport.
What Buyers Should Do Before Making an Offer
If you want to avoid surprises, here are the smartest steps to take before you write an offer:
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Ask your agent for the home’s roof age and condition
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Request flood zone information
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Call an insurance agent for a preliminary quote
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Budget for potential escrow increases after the first year
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Review HOA requirements if purchasing a condo or townhome
Insurance can be a deal-breaker, but only if it catches you off guard.
What Tampa Bay Sellers Should Know Too
This isn’t just a buyer issue.
Sellers in Tampa Bay should understand that insurance costs can impact demand, especially if a property has:
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an older roof
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outdated electrical panels
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aging plumbing
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limited wind mitigation features
Homes that are updated, well-maintained, and insurable are more attractive in today’s market.
In many cases, sellers who provide documentation upfront (roof permits, wind mitigation reports, recent upgrades) can help buyers move forward faster and with more confidence.
Bottom Line: Plan for Insurance Early, Not After You’re Under Contract
Home insurance costs are rising, and in Florida, that reality matters more than almost anywhere else.
But buyers who plan ahead can still purchase confidently, especially as mortgage rates ease and affordability improves. The key is knowing what to expect and building insurance costs into your budget from day one.
If you’re thinking about buying a home in Tampa Bay, Rocks Realty can help you understand the true cost of ownership, explore neighborhoods strategically, and make sure nothing surprises you once you’re under contract.
Because the smartest buyers are the ones who plan before they fall in love with the house.
Annie & Kevin Rocks | Rocks Realty
Annie: 727-777-3264
Kevin: 727-389-6453
