Average homeowners insurance premiums in a portfolio increased 9.16% in 2025, rising from $2,020 to $2,205. This was the first notable slowdown after annual increases approaching 20% in 2023 and 2024. Premiums have still grown 107.6% since 2019, outpacing dwelling coverage limit growth of 45.6% over the same period. The report analyzed more than 265,000 policies and more than 7,500 claims from 2018 to 2025. Premiums varied widely by state, with Colorado highest and Washington, D.C. lowest. Replacement costs averaged $478,000 in 2025, and the national cost of coverage rose to $4.61 per $1,000 of replacement cost from $3.24 in 2019.
"The company's 2026 Home Insurance Trends Report found that the average homeowners insurance premium in its portfolio rose 9.16% in 2025, increasing from $2,020 to $2,205. That marked the first notable slowdown since 2019 after annual increases approaching 20% in 2023 and 2024. Even with the moderation, average premiums have climbed 107.6% over the past six years, far outpacing the growth in dwelling coverage limits, which rose 45.6% during the same period, the report said."
"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 analyzed more than 265,000 homeowners policies placed with 100-plus carriers nationwide, as well as more than 7,500 claims filed between 2018 and 2025. Insurance costs varied sharply by state. Colorado had the highest average annual premium in Rate Insurance's portfolio at $3,392, followed by Texas at $3,343, Oklahoma at $3,135 and Florida at $2,946. Washington, D.C., had the lowest average premium at $1,197."
"The report also found widening gaps between premiums and replacement costs. Average estimated replacement costs reached $478,000 in 2025, up more than 40% over five years. Meanwhile, the average national cost of coverage rose to $4.61 per $1,000 of replacement cost, compared with $3.24 in 2019. Oklahoma recorded the highest cost"
#homeowners-insurance #premium-growth #market-stabilization #replacement-cost #state-by-state-pricing
Read at www.housingwire.com
Unable to calculate read time
Collection
[
|
...
]