Insurers ease underwriting as carriers compete for buyers again

Home insurance premium growth is slowing, as competition among providers has returned, a new industry report found.

A record 11.7% of homeowners renewing their insurance policy saw their fee decrease, up from 7.4% last year and 4.9% in 2024, according to Matic's mid-year trends report. On average, homeowners who extended coverage experienced a 10.6% cost jump in the first half of this year, down from 19.4% in 2025 and 28% two years ago.

Premiums for newly written home insurance policies also increased 5.9% year over year, continuing steady moderation after growth peaked at 18.7% in 2024. The average cost for new policies sit at $2,057.

"The home insurance market is beginning to look very different," said Ben Madick, CEO and co-founder of Matic, in a press release. "After several years of tightening underwriting guidelines and raising premiums to restore profitability, many carriers are now loosening those restrictions and competing for customers again." 

The average number of quotes available per person rose 27% from 2025 and 74% since its low point two years ago, giving homeowners more opportunities to compare pricing and coverage, the report found.

While conditions have improved, affordability remains a concern. Premiums still rest at historic highs following years of significant increases, and insurance is becoming a larger portion of the cost of homeownership. Home insurance accounted for 14% of the average monthly mortgage payment in 2025, up from 10% in 2013, according to a report from the Federal Reserve Bank of Dallas.

Insurers also face pressure from frequent and costly weather events. Severe convective storms, winter weather, flooding, wildfires and other disastrous events have generated billions of dollars in insured losses this year, according to the report.

"The insurance industry is adapting to a new risk environment," Madick said. "We're seeing weather events become less predictable, with major losses no longer limited to a specific season. The challenge ahead will be finding ways to balance affordability for homeowners with the need for a financially sustainable insurance market."

Regional divides

Progress was not limited to a single region in the United States. Several of the individual states Matic analyzed experienced nearly flat or declining average premiums, such as New York, Wisconsin, Missouri, Oregon and Colorado.

While conditions have improved nationally, the pace of recovery varies widely across the country. Six states, including California, Florida and New Jersey, continued to see double-digit premium increases this year, as insurers responded to each state's unique market conditions, the report said.

For many homeowners, where they live was still the biggest factor influencing insurance cost and availability.