Homeowners Insurance Premiums Are Rising More Slowly, But Costs Remain High

Homeowners insurance premiums are still climbing, but the pace of those increases may finally be starting to moderate. Even so, most homeowners continue to pay more, and rising construction costs, severe weather, and underinsurance are keeping pressure on household budgets. Tim Lucas and Craig Berry examine what Matic’s 2026 Home Insurance Report says about premiums, why some insurers are becoming more competitive, and how insurance costs are increasingly affecting housing affordability.

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In this episode you'll learn:

• Why premium increases may be slowing: Insurers appear to be shifting some of their focus from restoring profitability back toward growth, helping bring more competition into the market.
• How many homeowners are actually paying less: Only 11.7% of homeowners saw their premiums decline in the first half of 2026, meaning most policyholders still paid the same or more.
• How much premiums are increasing: New policies rose 5.9%, while existing policyholders saw a 10.6% increase, both well above the broader inflation rate.
• What continues to drive insurance costs: Higher construction expenses, costly reinsurance, and major catastrophe losses are keeping upward pressure on premiums.
• Why severe weather still matters: Winter storms, hail, tornadoes, straight-line winds, and wildfires continue to generate billions of dollars in insured losses.
• Why shopping around can help: Increased competition among insurers may create better opportunities for homeowners to compare premiums, coverage, and deductibles at renewal.
• Why underinsurance is a major concern: Matic estimates that a large share of U.S. homes may not carry enough coverage to fully rebuild after a major loss.
• How AI is changing insurance pricing: Insurers are increasingly using detailed property data, satellite imagery, and other technology to assess risk at the individual-home level.
• How homeowners may be able to reduce risk: Maintenance issues, overhanging trees, and other visible property conditions can affect an insurer’s assessment of a home.
• The big takeaway: Home insurance trends may be moving in a better direction, but affordability remains a serious problem. Most homeowners are still paying more, and in high-cost states such as Texas, rising premiums can meaningfully affect whether a home is affordable at all.

Read the full article: https://www.mortgageresearch.com/articles/homeowners-insurance-premiums-rising-more-slowly/