PERSONAL LINES
HOW AGENTS CAN SUPPORT HOMEOWNERS AS THE MARKET STABILIZES by Olivia Overman, IA magazine
Over the past few years, rising premiums and tightening coverage options in the U. S. homeowners insurance market have added significant financial pressure on consumers.
Almost half( 47 %) of homeowners insurance customers in the U. S. experienced a premium increase in 2025, the highest rate of insurer-initiated rate raises in more than a decade, according to the JD Power“ 2025 U. S. Home Insurance Study.”
Yet, as millions of U. S. homeowners continue to grapple with the challenge of affording coverage, there are some signs that the market may be beginning to stabilize, according to the“ 2025 Homeowners Insurance Issues Brief” from the Insurance Information Institute( Triple-I).
While“ weather volatility and availability and affordability challenges were key over the past several years, both have taken some encouraging turns in the last 12 months,” says Helen Simonett, vice president, property line leader at Nationwide.“ Many carriers reported significant underwriting losses in the first half of 2025, but the second half told a very different story.”
The indicators are now leaning more toward a“ market that has definitely moderated,” says Chris Bacon, chief operating officer at Openly.“ The last couple of years were pretty difficult, primarily because we had a lot of weather events and a lot of reinsurance tightening, which a lot of carriers reacted to with reduced availability and eligibility.”
While there may be a beacon of light in the homeowners market, several trends, in addition to weather volatility, have impacted and will continue to adversely impact premium rates.
“ The No. 1 thing that’ s driving premium is replacement costs, which have continued to increase post the COVID-19 pandemic,” Bacon says.“ You are seeing carriers having to increase their prices to match the
16 KANSAS INSURANCE AGENT & BROKER