Home insurance rates are expected to rise an average of 4% in 2026, continuing a five-year trend of increases due to severe weather and natural disasters. States like California, Nebraska, New Mexico, and Georgia may see double-digit hikes, with California projected at 16%. Recent costly events include $52 billion in storm damages and over $250 billion from wildfires in Southern California. Insurers are adjusting policies to reduce claims exposure, increasing homeowner risk.