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Homeowners Insurance Skyrockets 64% by 2025!
1 May
Summary
- Average annual premiums surged 64% from 2021 to 2025.
- Arizona saw a 94% increase, while Louisiana's premiums hit $4,238.
- Despite rising costs, mortgage delinquency rates remain low.
Homeowners insurance premiums saw a dramatic increase, with average annual costs rising 64% between the end of 2021 and the end of 2025. Although the rate of increase slowed to 10% in 2025, premiums remained significantly elevated compared to 2021 levels. The average annual premium for approximately 1.2 million mortgage loans climbed from $1,597 to $2,625.
Geographic variations in premium hikes were substantial. Arizona experienced the largest average annual increase at 94%, while Alaska saw a more modest 27% rise. By the end of 2025, Louisiana reported the highest average annual premium at $4,238, followed by Florida at $4,060 and Texas at $3,952.
Despite these escalating insurance expenses, which have become a larger part of overall housing costs, mortgage delinquency rates have stayed below historical averages. Customers who switched insurance carriers through Matic in 2025 reported average savings of $928. Home values also continued to rise, increasing by roughly $50,000 from 2021 to 2025, according to the Zillow Home Value Index.
