Homeowners insurance premiums have more than doubled over the past six years, although the pace of increases showed its first signs of slowing in 2025, according to a new industry report.
Rate Insurance, LLC, a national insurance brokerage and subsidiary of Rate, released its 2026 Home Insurance Trends Report on Thursday, drawing on more than 265,000 policy records across all 50 states and claims data spanning 2018 to 2025. The report found that average premiums rose 9.16% in 2025, from $2,020 to $2,205, following two consecutive years of nearly 20% annual growth.
Since 2019, premiums across Rate Insurance’s portfolio have climbed 107.6%. Coverage A, the dwelling protection intended to cover rebuilding costs, increased only 45.6% over the same period, widening the gap between what homeowners pay and the rebuilding protection their policies provide.
Average replacement costs reached $478,000 in 2025, a 40.69% increase over five years, outpacing the automatic Coverage A adjustments built into most policies.
“After several years of sharp increases, we’re starting to see early signs that the market is stabilizing,” said Jeff Wingate, president of Rate Insurance. “Premiums are still elevated, but this shift gives homeowners a window to reassess their coverage, make informed adjustments, and take a more proactive approach to managing long-term costs and their overall financial well-being.”
The report also tracked a notable shift in deductible structures. Policies with deductibles below $2,500 fell from 73.52% of the portfolio in 2018 to 59.67% in 2025, a trend the report said has increased homeowners’ out-of-pocket exposure.
On the claims side, volume dropped to its lowest level in five years, at 1,045 claims, yet total losses paid remained nearly unchanged at $34.1 million as average claim severity increased from $24,600 in 2024 to $32,600 in 2025. The January 2025 California wildfires were identified as a primary driver of the increase in claim severity.
Geographic disparities also widened. Maine (+21.4%), Nebraska (+19.6%), and Rhode Island (+18.1%) recorded the steepest premium increases over the past year, while Florida (+4.4%) and Iowa (+1.6%) saw comparatively modest gains. The gap between the highest- and lowest-premium states now exceeds $2,000 annually, the widest in Rate Insurance’s dataset.
The 2026 Home Insurance Trends Report is the company’s third annual study of homeowners insurance pricing, coverage, and claims trends nationwide.
