Rate Insurance LLC has released its 2025 Home Insurance Trends Report, offering a detailed look into the home insurance market. Drawing from nearly 70,000 active policies across all 50 states and more than 70 carriers, the report highlights premium increases, shifting deductible preferences, and state-specific developments that are driving up costs for homeowners.
“Insurance costs are climbing, but that doesn’t mean customers are powerless,” said Jeff Wingate, President of Rate Insurance. “This report is designed to demystify what’s driving those increases and give homeowners practical ways to keep their policies both affordable and effective—whether adjusting deductibles, bundling coverage, or shopping across carriers.”
The report provides a comprehensive analysis of customer data collected over the past six years, painting a clear picture of current cost pressures. In addition to premium trends, the report delves into claims data, identifying areas where coverage is becoming more difficult to obtain or more expensive, particularly in disaster-prone states. It also outlines strategies for homeowners to save on premiums without sacrificing essential coverage.
Key Report Findings
- The 2024 home insurance market experienced sharp premium increases. Internal policyholder data comparing January through August 2024 to the same period in 2023, showed a national average annual premium rise to $2,072, a significant 20% increase from $1,723 in 2023. Over the past six years, premiums have increased by 78%, placing persistent financial strain on homeowners.
- The combined ratio for homeowners insurance was estimated at 105.7% in 2024, down from 110.9% in 2023 as noted in AM Best’s 2024 Market Segment Report.
- Factoring in personal auto, the personal lines combined ratio improved to 101.2% in 2024, down from 106.7% in 2023, showing a near return to profitability.
- While the personal lines industry’s year-over-year improvement in underwriting losses was an important development, homeowners insurance carriers are still operating at a loss. Pricing is expected to remain high and continue to increase until profitability is restored.
Notably, the 2025 report identifies a trend toward higher deductibles, as more homeowners look to offset premium hikes by assuming greater upfront risk. Meanwhile, state-specific variations continue to grow. Factors like increased storm activity, wildfire exposure, and regulatory shifts are contributing to dramatically different experiences for homeowners depending on where they live.
Rate Insurance, a subsidiary of Guaranteed Rate, is licensed in all 50 states and operates as one of the fastest-growing national personal lines and small commercial insurance brokers. The company offers a range of personal, commercial, specialty, and life insurance products, and has earned recognition as a Top 50 Personal Lines Agency and Top 100 Property & Casualty Agency in the U.S.
Click here to access the 2025 Home Insurance Trends Report.
