Around the Industry: Why Urban Homeowners Have Lower Environmental Risk, Higher Home Insurance Premiums (September 2026)
Reading time • 1 min
By Matic
The first five miles surrounding a city’s downtown are the most expensive in American metropolitan areas. Find out why, plus discover new customer satisfaction data and how that impacts insurance retention rates. We’re also covering the most frequently denied claims overlooked by homeowners as well as state news from Utah, California, and Florida.
Despite lower environmental risks, urban homeowners face higher premiums
A new report from Brookings analyzing home insurance premiums found that city homeowners pay higher insurance premiums than suburban areas in the same metropolitan area — even though the risk of wildfires, tornadoes, and flooding is lower. The likely culprits for these higher rates include a greater chance of theft and the cost of repairing older homes common in urban areas.
The biggest trigger for homeowners switching insurance providers
JD Power just released its 2026 U.S. Home Insurance Study. The biggest takeaway? Trust and service are two of the most important factors in customer retention rates for home insurance companies. Another interesting finding is that only 55% of homeowners report fully understanding their policy coverage. For mortgage professionals, the survey results underscore just how much the insurance experience can shape a homebuyer’s overall experience during and after the mortgage process.
The highest claim denial new homeowners may not know about
More than 20% of home insurance claims involve water damage and freezing and 1 in 10 are typically denied by providers. The deciding factor? Whether the event was sudden and accidental, or a result of deferred maintenance. This drives home the theme of why it’s so important for homeowners to review and understand their policy coverage.
UT beats out CA for nonrenewal rates as two major carriers reopen for business; FL gubernatorial candidates offer different home insurance approaches
- Utah’s nonrenewal rates surge: The latest NAIC data reveals that 1 in 20 Utah homeowners did not receive an insurance renewal in 2025 — 1.5% higher than California’s nonrenewal rate.
- Looking up in California: State Farm and Allstate announced plans to reenter the California home insurance market for new policies.
- Sunshine State throwdown: Florida’s gubernatorial race heats up with disagreements over home insurance policy.
