Why Insurance Premiums Are Rising in 2026

When you’re securing a mortgage in Arizona, homeowners insurance isn't just a recommendation—it’s a requirement for your loan approval. As a Certified Mortgage Advisor, Karen Jones understands that in today’s 2026 market, your insurance premium is a critical piece of your debt-to-income (DTI) puzzle.

Think of homeowners insurance as the shield for your property and your financing. NerdWallet breaks down its core functions:

• Property Protection: Pays to repair or rebuild your home after fire, wind, or Arizona’s intense monsoon storms.
• Asset Security: Covers personal items like electronics and furniture if they are stolen or damaged.
• Liability Shield: Provides a legal and medical safety net if an accident occurs on your property.

While insurance is non-negotiable, the cost of that "shield" has been shifting. Here is what Karen Jones wants you to know about budgeting for your Arizona home loan.

The 2026 Outlook: Insurance vs. Mortgage Rates

The Insurance Research Council (IRC) identifies two main culprits for rising premiums: an increase in severe weather claims and the skyrocketing costs of construction labor and materials.

However, we are seeing a "balancing act" in 2026 that benefits savvy buyers:

Karen’s Insight: "While insurance costs have stabilized at a higher level, falling mortgage rates are the game-changer. Even a half-percent drop in your interest rate can more than offset a higher insurance premium, keeping your monthly 'all-in' payment affordable."

How to Optimize Your Loan Approval in Arizona

Strategic Ways to Lower Your Costs:

• Shop Early: Don't wait until the week of closing. Getting multiple quotes early allows us to lock in your DTI accurately.  And be sure to shop service providers for not only the price, but the coverage as well.
• Bundle & Save: Most carriers offer significant discounts (often 10-20%) if you bundle your home and auto policies.
• Home Hardening: If you're buying in areas prone to wildfires or storms, ask about "Firewise" credits or discounts for newer, impact-resistant roofs.

Meet Karen Jones: Your Trusted Arizona Mortgage Advisor

With over 40 years of financial expertise, Karen Jones is a Certified Mortgage Advisor based in the Phoenix Metro area. She specializes in the financing of home loans across Maricopa, Pinal, Coconino, and Navajo Counties, providing a local advantage from the Valley to the White Mountains.

As a seasoned professional, Karen offers expert guidance on:

• Purchase Loans: FHA, VA, Conventional, and Jumbo Loans.
• Specialized Programs: Arizona Down Payment Assistance and Investor-focused lending.
• Home Equity: Professional solutions for 2nd mortgages and refinancing.

Whether you are buying in Show Low, refinancing in Flagstaff, or moving to the Phoenix Valley, partner with an advisor dedicated to your long-term financial success.