Consumer Insights:
Home Insurance Trends for 2026

Consumer Insights:
Home Insurance Trends for 2025

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STRATEGIC MARKET ANALYSIS BY RATE INSURANCE

About Our Study

This report is based primarily on Rate Insurance’s nationwide premium and policy dataset, which includes approximately 265,000 homeowners insurance policies placed with over 100 carriers and markets across all 50 states. This dataset forms the foundation of our analysis of premium trends, coverage levels, deductible patterns, and geographic variability.

To complement the premium analysis, the study incorporates insights from more than 7,500 home insurance claims filed between 2018 and 2025 through Rate Insurance’s top national carrier partners. These claims provide visibility into loss frequency, severity, and cause-of-loss patterns, and help explain the risk dynamics shaping carrier pricing and underwriting decisions.

Key Findings: A Market in Transition

Homeowners insurance premiums have more than doubled since 2019, rising 107.6% across
Rate Insurance’s portfolio. In 2025, the pace finally slowed. While premiums are still increasing, the cumulative rise has changed what homeowners pay and what their coverage looks like in practice.

This report presents a detailed, data-backed view of the forces driving the current market, the shifts taking place among carriers and homeowners, and the first measurable signs that the rapid premium escalation of recent years may be easing.

Average premiums rose 9.16% in 2025, from $2,020 to $2,205 — the first moderation in the rate cycle since 2019, following two consecutive years of nearly 20% growth
Since 2019, premiums have increased 107.6% while Coverage A has grown only 45.6%,
leaving a widening gap between what homeowners pay and the coverage their policies
support
Deductibles under $2,500 dropped from 73.52% of policies in 2018 to 59.67% in 2025,
shifting meaningful out-of-pocket exposure onto homeowners
Claims volume fell to its lowest point in five years (1,045 claims), but total losses paid
remained nearly flat at $34.1M as severity rose sharply, driven by the January 2025 California wildfires
Replacement costs reached $478,000 on average in 2025, a 40.69% increase over five years, outpacing the automatic Coverage A adjustments most policies rely on
Premium spread between the highest and lowest states now exceeds $2,000 annually — the widest gap in Rate Insurance's dataset