Rising Home Insurance Costs in 2025
The 2025 Home Insurance Trends Report from Rate Insurance LLC has revealed significant premium increases in the home insurance market. Drawing from nearly 70,000 active policies across all 50 states and more than 70 carriers, the report provides a comprehensive analysis of current trends and cost pressures facing homeowners.
Key Findings of the Report
The report highlights a national average annual premium of $2,072 for 2024, representing a substantial 20% increase from $1,723 in 2023. Over the past six years, premiums have surged by 78%, placing considerable financial strain on homeowners. Despite a slight improvement in the combined ratio for homeowners insurance to 105.7% in 2024 from 110.9% in 2023, insurance carriers continue to operate at a loss.
Trends and Strategies for Homeowners
The report identifies a growing trend toward higher deductibles as homeowners seek to offset premium hikes by assuming greater upfront risk. State-specific variations are becoming increasingly pronounced, driven by factors such as increased storm activity, wildfire exposure, and regulatory shifts. To navigate these challenges, homeowners are advised to explore strategies such as adjusting deductibles, bundling coverage, and shopping across carriers to keep their policies both affordable and effective.
“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.”
For those looking to access the full report, it is available by visiting the Rate Insurance website. The company, a subsidiary of Guaranteed Rate, operates as one of the fastest-growing national personal lines and small commercial insurance brokers, licensed in all 50 states.
About the Author
Andy Beth Miller is a seasoned journalist with over 20 years of experience in magazine, newspaper, and editorial writing. She has contributed to various journalistic publications and luxury magazines, honing her skills in storytelling and delivering compelling content across diverse topics.
