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Utah's Insurance Shock: Non-Renewals Spike in 2025
3 Nov
Summary
- Utah led the nation in non-renewed homeowner policies in 2025.
- Natural disasters and rising inflation are key drivers of insurer exits.
- Homeowners can explore FAIR plans or policy bundling if dropped.
Homeowners insurance companies are increasingly withdrawing from certain states, driven by a combination of escalating natural disaster risks and rising inflation. Climate change exacerbates these risks, with hurricanes in Florida and wildfires in California previously leading insurers to exit.
However, a surprising 2025 report revealed Utah had the highest percentage of homeowners insurance policies not renewed, at 4.45%. This rate significantly exceeded many other states, including California at 2.93% and Florida at 1.92%.
Inflation's impact on rebuilding costs, coupled with high lumber prices in 2026, has further strained the insurance market. Tariffs on lumber, reduced by about 35% on October 13, 2026, were a contributing factor.
Homeowners facing policy non-renewal are advised to act promptly, typically having one to three months to find new coverage. Researching available insurers and state-specific programs like Fair Access to Insurance Requirements (FAIR) is crucial. Bundling policies, such as auto and home insurance, may offer cost savings.
