Consumer Insights:
Home Insurance Trends for 2025

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STRATEGIC MARKET ANALYSIS BY RATE INSURANCE

About Our Study

Rate Insurance, a leading provider of homeowners insurance, conducted a detailed market study using proprietary customer data spanning six years. This analysis examines nearly 70,000 active home insurance policies, placed with over 70 different insurance carriers, representing customers across all 50 states.

This market study provides insights into premium increases, notable shifts in deductibles, state-specific variables, claims analysis, and overall market trends. It also offers actionable recommendations to help homeowners navigate and manage rising insurance costs in 2025. The insights provided in this paper are for informational purposes only. Readers should consult with qualified professionals before making any coverage or business decisions based on this report or its contents.

Key Findings: Record Premium Increases

In 2024, personal insurance pricing reached new highs, driven by severe weather events, mounting claims, and tightening coverage in key markets. As carriers adapt to the impacts of climate change and evolving risks, independent agents play a pivotal role in guiding clients through these challenges. This report breaks down the forces shaping today’s market, from data-driven pricing and technological innovation to the outlook for 2025, so you can stay informed and make confident insurance decisions in an increasingly complex environment.

The 2024 home insurance market continued to experience sharp premium increases. Internal policyholder data comparing January through August 2024 to the same period in 2023, showed a national average annual premium rise to $2,072, a significant 20% increase from $1,723 in 2023. Over the past six years, premiums have increased by 78%, placing persistent financial strain on homeowners.

The combined ratio for homeowners insurance was estimated at 105.7% in 2024, down from 110.9% in 2023 as noted in AM Best’s 2024 Market Segment Report¹.

Factoring in personal auto, the personal lines combined ratio improved to 101.2% in 2024, down from 106.7% in 2023, showing a near return to profitability.

While the personal lines industry’s year-over-year improvement in underwriting losses was an important development, homeowners insurance carriers are still operating at a loss. Pricing is expected to stay high and continue to increase until profitability is restored.