Homeowners Insurance Skyrockets 64% by 2025!

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.