Due to inflation and increasingly volatile weather, among other factors, homeowners have been feeling the impact of rate hikes in recent years, according to Insurance.com. The home insurance market is expected to stabilize in 2026, but depending on location, consumers likely shouldn’t expect significantly lower renewal rates.
And even though the overall market is getting better, it might take some time before numerous homeowners notice any indication of reduced rates. A recent article revealed the factors behind rising home insurance rates, the likelihood of rate reductions in 2026, and what homeowners can anticipate regarding their insurance coverage and expenses.
Some driving factors of home insurance growth are:
- Severe weather and natural disasters
- Increased construction costs
- Litigation
- State regulations
Top 10 States with the Highest Home Insurance Rate Increases — 2023 to 2025
| Rank | State | Average (2023) | Average (2025) | Change |
|---|---|---|---|---|
| No. 1 | Louisiana | $3,797 | $5,986 | +58% |
| No. 2 | Michigan | $2,072 | $2,924 | +41% |
| No. 3 | Virginia | $1,517 | $2,074 | +37% |
| No. 4 | Kentucky | $3,028 | $4,042 | +33% |
| No. 5 | Minnesota | $2,115 | $2,729 | +29% |
| No. 6 | South Carolina | $2,387 | $2,974 | +25% |
| No. 7 | Nevada | $1,426 | $1,774 | +24% |
| No. 8 | Rhode Island | $1,972 | $2,445 | +24% |
| No. 9 | South Dakota | $3,054 | $3,760 | +23% |
| No. 10 | Missouri | $3,302 | $3,979 | +21% |
The continuation of rate increases in 2026 and later will be influenced by many factors. To begin with, the rate hikes for which insurers have submitted applications have not yet affected many homeowners, and some are still awaiting approval. Some factors suggest that home insurance rates may stabilize in 2026, while others indicate the possibility of increases.
Home Insurance Stability Varies Nationwide
Aside from the pain of home insurance rate increases, LendingTree’s 2026 Home Insurance Stability Report offers some positivity to aspiring homebuyers that are looking to purchase property and insurance in more affordable states.
Due to increasing construction costs, inflation, and the occurrence of more frequent and severe natural disasters, the home insurance market has experienced considerable volatility. However, this has resulted in increased premiums and a decrease in coverage options in certain areas.
LendingTree analyzed five categories for the study: rate changes, loss ratios, insurance costs as a percentage of household income, percentage of uninsured homes and market share.
Top 10 States with the Most Stable Home Insurance Markets:
| Rank | State | % change in home insurance rates, 2020-25 | Loss ratio, 2020-24 | % of homes w/out insurance | Market share, top 5 insurers | % of household income on home insurance | Average score |
|---|---|---|---|---|---|---|---|
| No. 1 | Massachusetts | 29.6% | 39.2% | 10.7% | 38.2% | 1.8% | 92.7 |
| No. 2 | Vermont | 19.6% | 45.5% | 10.7% | 49.6% | 1.6% | 91.3 |
| No. 3 | New Hampshire | 26.9% | 45.5% | 10.0% | 46.5% | 1.8% | 90.4 |
| No. 4 | Maine | 20.0% | 43.2% | 13.2% | 43.7% | 2.4% | 89.0 |
| No. 5 | New York | 25.5% | 51.2% | 12.0% | 51.7% | 2.2% | 84.8 |
| No. 6 | New Jersey | 32.1% | 59.7% | 11.2% | 47.2% | 1.7% | 84.2 |
| No. 7 | Connecticut | 39.4% | 56.2% | 11.4% | 39.2% | 2.7% | 82.4 |
| No. 8 | District of Columbia | 32.9% | 52.2% | 10.8% | 70.4% | 1.6% | 79.5 |
| No. 9 | Rhode Island | 45.6% | 50.5% | 12.3% | 45.8% | 2.7% | 79.1 |
| No. 10 | Nevada | 30.4% | 59.8% | 13.6% | 57.0% | 2.0% | 78.5 |
The report revealed that New England states boast the most stable markets in the U.S. from 2020 to 2025, having the lowest growth in home insurance rates (19.6% to 29.6%), a lower percentage of homes lacking insurance coverage (10.0% to 13.2%), and relatively minor household insurance burdens.
Insurance rates generally reflect insurance companies’ costs of covering claims in each state,” he says. “We haven’t seen the same level of destruction in these New England states,” said Rob Bhatt, LendingTree Home Insurance Expert and licensed insurance agent. “This has helped keep insurance companies’ expenses predictable, which has also helped keep rates stable for many of the area’s homeowners.”
According to Bhatt, the stability in New England may be due to the fact that it has not been impacted by natural disasters as frequently as other regions.
“Insurance rates generally reflect insurance companies’ costs of covering claims in each state,” he said. “We haven’t seen the same level of destruction in these New England states. This has helped keep insurance companies’ expenses predictable, which has also helped keep rates stable for many of the area’s homeowners.”
Examining Stability Among Volatile Housing Markets Statewide
On a broader scale, the Northeast stands as the most stable region for home insurance, comprising eight of the top 10 states with the strongest home insurance markets. These states each allocate less than 3.0% of their household income to insurance, which is significantly lower than the 50-state average of 3.7%. As a result, loss ratios are low, aiding in predictability for both insurers and consumers.
In general, the markets in the West and Midwest are volatile, as they comprise half of the ten states with the steepest premium hikes (five from each region). In addition to the South, these regions also experience the highest loss ratios, with four of the top 10 in the Midwest and three each in the West and South.
These areas also experience significant cost burdens, especially the Southern states, which allocate the highest proportion of their income to home insurance. Seven of the ten states that allocate the highest share of income are located in the South, while two are situated in the Midwest and one is in the West.
On the other hand, Louisiana, Iowa, and Arkansas have the least stable home insurance markets, primarily influenced by loss ratios (the comparison of a company’s claim payouts to its premium collections). The state with the highest loss ratio is Louisiana (142.8%), followed closely by Iowa (118.0%) and Arkansas (99.8%), which holds the fourth position.
The most significant increases in insurance premiums have occurred in Colorado, Iowa, and Minnesota. From 2020 to 2025, home insurance rates in Colorado increased by 100.8% cumulatively, outpacing Iowa (96.0%) and Minnesota (88.2%).
According to Bhatt, the main reasons for the significant rise in premiums during the first half of this decade were the rise in natural disasters and inflation.
“Insurance companies had to pay to rebuild more homes than normal, and the cost of repairing each one was more expensive,” he said. “That said, 2025 was a relatively calm year on the disaster front, and inflation has calmed down. This is creating optimism that we may see rates stabilize, at least for a while. Of course, any future uptick in disasters, inflation or both could roil the home insurance marketplace once again.”
To read the full report, click here.
The post Report: 2026 Home Insurance Markets & Nationwide Stability first appeared on The MortgagePoint.
