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.
Our 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.
Download the full 2026 market report
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
- 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
This is Rate Insurance’s third consecutive annual market study, created to give homeowners, lenders, real estate professionals, and industry partners a clear, comprehensive understanding of where the homeowners insurance market stands and how it is evolving. The 2026 edition expands on several trends that have grown more pronounced across our portfolio: the widening gap between premiums and actual coverage value, the shift toward higher deductibles, tightening carrier underwriting around roof age, the emergence of deductible buy-down products, and the first meaningful deceleration signal the market has produced since 2019.
Read the full 2026 market report
Disclaimer:
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.
All information provided in this publication is for informational and educational purposes only, and in no way is any of the content contained herein to be construed as financial, investment, or legal advice or instruction. Rate Insurance does not guarantee the quality, accuracy, completeness or timelines of the information in this publication. While efforts are made to verify the information provided, the information should not be assumed to be error free. Some information in the publication may have been provided by third parties and has not necessarily been verified by Rate Insurance. Rate Insurance, its affiliates and subsidiaries do not assume any liability for the information contained herein, be it direct, indirect, consequential, special, or exemplary, or other damages whatsoever and howsoever caused, arising out of or in connection with the use of this publication or in reliance on the information, including any personal or pecuniary loss, whether the action is in contract, tort (including negligence) or other tortious action.