Is a type of insurance that protects physical property — such as homes, buildings, apartments, offices, or personal belongings — against damage, loss, or liability caused by covered events.

The most common forms are:

 

• • Homeowners insurance

• • Renters insurance

• • Commercial property insurance

• • Condo insurance

• • Landlord insurance

What property insurance covers

Typical property insurance policies cover four main areas:

1. Damage to the building or structure

This covers repair or rebuilding costs if the property is damaged by events such as:

 

• • Fire and smoke

• • Windstorms

• • Hail

• • Lightning

• • Theft or vandalism

• • Burst pipes or water damage

• • Falling objects

For homeowners, this is called “dwelling coverage.”

2. Personal belongings

Covers items inside the property, including:

 

• • Furniture

• • Clothing

• • Electronics

• • Appliances

• • Jewelry (usually with limits)

3. Liability protection

Pays legal or medical costs if someone is injured on your property or if you accidentally damage someone else’s property.

Example:

 

• • A visitor slips on icy stairs and sues you.

4. Additional living expenses (ALE)

Pays temporary housing and living costs if your home becomes uninhainable after a covered loss.

Example:

 

• • Hotel stays after a fire.

What property insurance usually does NOT cover

Most standard policies exclude:

 

• • Flood damage (requires separate flood insurance)

• • Earthquakes (separate policy or rider)

• • Normal wear and tear

• • Pest damage

• • Intentional damage

• • Business losses in a home policy

Some insurers also limit coverage in high-risk wildfire or hurricane areas.  

How much property insurance costs in 2026

Costs vary widely depending on:

 

• • Location

• • Property value

• • Rebuilding cost

• • Crime and weather risk

• • Deductible

• • Claims history

• • Coverage amount

Average U.S. homeowners insurance cost in 2026

Most national estimates place average annual premiums around:

Coverage Level	Typical Annual Cost
$200,000 dwelling coverage	~$1,900-$2,200
$300,000 dwelling coverage	~$2,200 $2,700
$350,000 dwelling coverage	~$2,500  $3,000
$500,000+ dwelling coverage	$4,000+

Why prices are rising in 2026

Insurance premiums have increased because of:

 

• • Severe weather and climate-related disasters

• • Higher construction and labor costs

• • Inflation

• • More expensive claims

• • Reinsurance costs

Industry reports show premiums have risen dramatically since 2019, though the pace of increases may be slowing slightly in 2026.