The results of a new Newrez study of almost 1.2 million residential mortgage loans have been released, informing consumers more about the state of home insurance premiums. The analysis found that between year-end 2021 and year-end 2025, the average yearly premium for homeowners insurance jumped by 64%, from $1,597 to $2,625.
Homeowners’ premiums increased by double digits between 2022 and 2024, but in 2025, the rate of increase fell to 10%, the lowest since 2021. Furthermore, according to the Zillow Home Value Index, home values climbed by around $50,000 between 2021 and 2025 despite rising insurance premiums, bolstering longer-term household balance sheets and overall homeowner equity.
Key Findings:
- An examination of over 1.2 million The average yearly homeowners insurance premium increased from $1,597 to $2,625 between year-end 2021 and year-end 2025, a 64% rise, according to Newrez-serviced residential mortgage loans. However, growth decreased to 10% in 2025, the lowest pace since 2021.
- Despite an increase in insurance prices, total delinquencies are still lower than historical averages, indicating homeowner resiliency.
- Between 2021 and 2025, the average yearly increase in insurance premiums was highest in Arizona (+94%) and lowest in Alaska (+27%).
- Newrez customers who switched carriers through Matic saved an average of $928, according to data from Matic, a Newrez partner, from 2025.
“Homeowners insurance has become a much larger component of housing costs for many homeowners since 2021, as more frequent severe weather events and higher rebuilding costs are putting pressure on insurers,” said Shane Ross, Head of Servicing at Newrez. “At the same time, while certain borrower segments face more acute affordability pressures, overall mortgage delinquency rates remain below historical averages, suggesting a broader level of homeowner resilience even as insurance and other housing costs rise.”
By comparing coverage options across carriers, some homeowners may be able to save money when insurance costs climb. Newrez clients who switched insurance companies through Matic and for whose past premium data was known saved an average of $928, according to statistics from the digital insurtech platform Matic, a Newrez partner, from 2025. According to Matic, homeowners may be able to save money through deductible adjustments, home-and-auto bundling, or risk-reducing property upgrades.
Regional Trends, Data & More — 2026
The Newrez-serviced portfolio showed significant regional variations in premiums. Louisiana had the highest average yearly premium at year’s end 2025 ($4,238), followed by Florida ($4,060) and Texas ($3,952). A variety of market characteristics, like as catastrophe exposure, rebuilding costs, underwriting procedures, and other carrier-specific concerns, may be reflected in regional variations.
At the end of 2025, the following five states had the highest average annual premiums for homeowners insurance:
- Louisiana ($4,238)
- Florida ($4,060)
- Texas ($3,952)
- Nebraska ($3,898)
- Colorado ($3,854)
Some 11 states saw rises of at least 75% between 2021 and 2025, with Arizona having the biggest increase (+94%). Alaska had the lowest rise at 27%, while just five states had increases below 50%.
From 2021 to 2025, the following five states saw the biggest increases in homeowners insurance premiums:
- Arizona (+94%)
- Idaho (+88%)
- Iowa (+83%)
- South Dakota (+83%)
- Utah (+82%)
At year-end 2025, the Miami region had the highest average yearly premium ($5,546) among the 20 most populated metropolitan statistical areas (MSAs) examined, while the Seattle area had the lowest ($2,087). Of the 20 MSAs examined, Phoenix had the biggest growth between 2021 and 2025 (+94%), while Miami had the lowest increase (+49%).
“For many Americans, their home is their largest and most important asset, and this is why it’s especially important for borrowers to understand how insurance fits into their overall cost of homeownership and to stay proactive about reviewing coverage,” Ross said. “At Newrez, our mission is to make home happen throughout the homeownership journey, and we aim to support homeowners with tools, resources, and strategic partnerships that help them manage costs and make confident decisions at every stage of ownership.”
To read the full report, click here.
