Columbus, Ohio, Dec. 18, 2025 (GLOBE NEWSWIRE) -- Matic, a leading digital insurtech platform, today released its annual year-end trends and predictions report, analyzing key developments in the 2025 home insurance market and their implications for consumers and the housing market. Drawing on proprietary data from Matic-quoted and insured properties, the report examines trends in premium growth, coverage availability, and the role of technology in underwriting and risk management, while offering predictions for what’s ahead in 2026.
Report findings show that after several years of historically high rate increases, the home insurance market showed signs of stabilization in 2025. The average premium for a new policy rose 8.5% year over year, a notable slowdown compared to the 18% jump in 2024. While this moderation signals some relief, premiums remain at record levels, now representing roughly 9% of the typical homeowner’s monthly mortgage payment.
"Carriers are back to rate adequacy, technology is helping them assess risk more accurately, and calmer weather in the latter half of the year gave the market a chance to steady," said Ben Madick, CEO and Co-founder of Matic. "Even so, homeowners are still facing very high costs, and climate-related uncertainty will continue to drive pricing and affect affordability in 2026."
The report shows that more financial responsibility is shifting to homeowners. Average deductibles rose 22% in 2025, and insurers are increasingly scrutinizing property-specific risk factors, such as roof age. Advanced technologies, including AI-driven inspections, satellite imagery, and drone assessments, are helping carriers evaluate homes more accurately and price policies based on actual conditions rather than assumptions.
The report also highlights that insurance pricing and availability remain highly dependent on geography. Colorado, Texas, and Georgia experienced steep premium increases due to a combination of climate exposure and regulatory factors. Nationally, overall coverage availability improved, with the average number of quotes per person rising 78% from the market’s low point in 2024. However, high-risk areas — particularly California, Florida, and Texas — continue to rely heavily on the Excess & Surplus (E&S) market. E&S products accounted for 16% of Matic policies in these states by the end of 2025, up from less than 2% in 2023.
For the mortgage industry, these trends are becoming increasingly difficult to ignore. Elevated insurance costs are directly impacting borrowers’ debt-to-income ratios, delaying closings, and, in some cases, preventing borrowers from qualifying altogether. As insurance consumes a larger share of monthly housing costs, lenders are facing more pressure to help borrowers navigate the insurance process.
"Insurance is playing a much bigger role in housing outcomes than it did even a few years ago," said Madick. "When premiums are high and options vary widely by location, having clarity on cost and coverage earlier in the process can make a meaningful difference for both borrowers and lenders."
Looking ahead to 2026, Matic expects several trends to shape the home insurance market:
- Climate and catastrophe risk will remain a primary driver of pricing and underwriting decisions, with severe convective storms, wildfires, and flooding creating ongoing uncertainty across many regions.
- Affordability and coverage availability challenges are likely to persist as premiums remain elevated, particularly in high-risk ZIP codes, prompting continued discussions around consumer protections and programs like the National Flood Insurance Program.
- AI adoption will accelerate and change the way consumers shop for and understand their insurance coverage, while also enabling insurers to assess property-level risk more precisely and refine pricing strategies.
- Proactive risk mitigation efforts are expected to expand, with carriers investing in programs such as roof reinforcement and electrical system monitoring to reduce future claims and loss severity.
Visit matic.com to read the full report, including details on the data and methodology.
About Matic
Since 2014, Matic has changed the landscape of the insurtech industry by integrating insurance within the home and auto ownership experience. Today, Matic’s digital marketplace has over 70 insurance carriers, as well as distribution partners in industries ranging from mortgage origination and servicing to banking, real estate, personal finance, and more. With a single-minded focus on advocating for policyholders, Matic has created an easy and transparent shopping process, saving customers hours of work and over $800 each year. For more information, visit matic.com.
Matic press@matic.com
