U.S. homeowners insurance premiums have more than doubled over the past six years, according to a new report from Rate Insurance. The pace of increases showed its first signs of slowing in 2025 after two years of sharper growth.
The Home Insurance Trends Report draws on more than 265,000 policy records across all 50 states and claims data from 2018 to 2025.
Average premiums rose 9.16% in 2025, moving from $2,020 to $2,205. That followed two straight years of nearly 20% annual growth.
Since 2019, premiums across Rate Insurance’s portfolio have climbed 107.6%. Coverage A, which protects the dwelling and is meant to cover rebuilding costs, increased only 45.6% over the same period.
That difference widened the gap between what homeowners pay and the rebuilding protection included in their policies. Average replacement costs reached $478,000 in 2025, up 40.69% over five years.
Those rebuilding costs outpaced the automatic Coverage A adjustments built into most policies. For homeowners, the report points to higher premiums and more pressure to review whether coverage still matches replacement cost.
Rate Insurance President Jeff Wingate said the market is beginning to show early signs of stabilization after several years of steep increases. He said premiums remain elevated, but the shift gives homeowners a chance to reassess coverage and make informed adjustments.
The report also found a clear change in deductible structures. Policies with deductibles below $2,500 fell from 73.52% of the portfolio in 2018 to 59.67% in 2025.
That move leaves more homeowners with higher out-of-pocket exposure after a loss. It also shows how policy design has changed alongside rising premiums.
Claims volume fell to its lowest level in five years, with 1,045 claims reported. Total losses paid stayed nearly flat at $34.1 mn.
Average claim severity rose from $24,600 in 2024 to $32,600 in 2025. The January 2025 California wildfires were identified as a main driver of the higher claim severity.
Geographic differences widened across the market. Maine recorded the steepest annual premium increase at 21.4%, followed by Nebraska at 19.6% and Rhode Island at 18.1%.
Florida posted a smaller 4.4% increase, while Iowa rose 1.6%. The gap between the highest- and lowest-premium states now exceeds $2,000 a year, the widest spread in Rate Insurance’s dataset.
The 2026 Home Insurance Trends Report is Rate Insurance’s third annual study of homeowners insurance pricing, coverage, and claims trends across the U.S.
