Around the Industry: Premium Rate Changes Easing Toward Pre-Pandemic Levels (May 2026)
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By Matic
Premium rate changes ease towards pre-pandemic levels
A large number of home insurance claims over the last few years have driven expensive annual rate increases for homeowners nationwide. But that pressure is easing, reflected in lower annual changes that are more on par with what consumers experienced before the pandemic. In 2025, state-approved price increases averaged just 8.3%, a 5.2% drop from the previous year.
Insurance rates increase for 71% of homeowners
While the rate of increase may be moderating, premium hikes are still impacting seven out of 10 American homeowners. Survey respondents believe prices have gone up due to insurance companies wanting to increase profits and rising repair and rebuilding costs. Homeowners in the West had the highest share of individuals who said that the cost of their insurance has gone up a lot.
“Hurricane tax” hits hard in Florida and Louisiana
High-risk coastal areas are more likely to face an additional “tax” in the form of a separate hurricane deductible. Homeowners in Florida and Louisiana bear the highest costs in the country, averaging an extra $4,500 per year.
North Carolina gets second rate hike, Florida replaces insurer of last resort coverage, and Oklahoma changes rate approval process
- NC rates scheduled on increase: On June 1, North Carolina homeowners will see an average premium increase of 7.5%. It’s the second of two rate hikes agreed on between insurance companies and the state.
- Florida shrinking its insurer of last resort: The state’s insurance regulator recently approved two property and casualty carriers to take on up to 40,000 policies previously maintained by Citizens Property Insurance Corp.
- OK switches to file-and-wait system: A new Oklahoma law prohibits home insurers from raising rates before notifying the state. Now they must receive state approval before implementing rate changes.
