Overview
- Rate Insurance’s 2025 data show the average homeowners premium rose 9.2% to $2,205, the slowest annual increase since 2020.
- Average premiums have climbed roughly 107.6% since 2019 while standard dwelling limits (Coverage A) increased about 45.6%, widening the gap between cost and protection.
- Submitted claim counts in Rate’s sample fell to a five-year low, down about 25.5%, yet total losses stayed near 2024 levels because individual claims grew larger.
- Price and coverage swings vary sharply by state, with Maine posting the largest 2025 increase and Colorado and Texas among the states with the highest average premiums.
- Sustained higher costs are squeezing household budgets and feeding mortgage stress, and the report links the rise to severe weather, higher construction costs, pricier claims and tighter insurer risk models.