2026 MARKET TRENDS

Home & Property

Key Takeaways

Rate increases are moderating after several years of corrective adjustments, though results vary regionally
The Southeast and parts of Florida are seeing softening for well-mitigated risks, while the Northeast, New England and wildfire-exposed Western regions continue to face upward pressure
Climate-driven catastrophes remain central to underwriting, pricing and capacity decisions, with hurricanes, severe convective storms, nor’easters, wildfires and inland flooding continue to drive severity and influence carrier appetite
Capacity is expanding in many standard markets for newer or well-mitigated homes, while high-risk regions—such as the West and coastal markets—often continue to rely on FAIR Plans or E&S placements
Regulatory and legislative developments, including catastrophe-modeling transparency and mitigation-credit programs, are shaping pricing, underwriting guidelines and customer expectations across states

Customers are seeking more transparency into underwriting decisions. In response, carriers are offering mitigation credits, technology-based incentives and clearer communication on pricing drivers.

Market Conditions

The homeowner market is entering a period of gradual stabilization after several years of corrective rate actions. While conditions are moderating, outcomes remain highly dependent on region and risk profile. Catastrophe exposure, construction inflation, underwriting discipline and reinsurance costs continue to determine where and how carriers deploy capacity.

Climate-driven risks, including severe convective storms, hurricanes, nor’easters, wildfires and inland flooding, remain primary influences on pricing and how much coverage insurers are willing to offer, in which locations, and under what terms. Carriers and reinsurers are using more granular modeling to assess risk, and high-quality submissions that clearly document mitigation efforts can secure better terms, particularly for homes with updated systems and strong maintenance records.

Capacity is expanding in many standard markets for well-mitigated, non-CAT risks, supported by new entrants. In contrast, wildfire-exposed Western markets, affluent areas and coastal ZIP codes continue to see constrained capacity and increased reliance on FAIR Plans or E&S placements, especially for older homes and more complex property risks.

Carriers have strengthened mitigation expectations, often requiring detailed information on roof age, structural upgrades, water-shutoff devices, temperature monitoring and wildfire defensible space. Homes lacking these improvements may face higher premiums, deductibles or more restrictive coverage terms.

Construction inflation continues to elevate claim severity by increasing replacement values, raising premiums even when rates soften across all segments. This also heightens the risk of underinsurance when customers reduce limits to manage costs. Peril-specific deductibles, such as wind, hail or wildfire, remain common, and determine out-of-pocket expenses based on the cause of loss.

Customers are seeking more transparency into underwriting decisions. In response, carriers are offering mitigation credits, technology-based incentives and clearer communication on pricing drivers. Regulatory efforts aimed at modeling transparency and insurer-of-last-resort frameworks are also shaping availability in high-risk regions for all types of homes and properties.

Claims Trends

Catastrophe activity remains a significant source of homeowners losses. Hurricanes, hailstorms, severe convective storms, flash floods and nor’easters continue to push severity higher, and construction inflation amplifies rebuilding costs even as claim frequency varies.

Weather-related claims — such as hail, wind-driven damage and heavy-rainfall or runoff-related water losses — remain a major pressure point and continue to influence underwriting guidelines and the use of peril-specific deductibles. Carriers are also applying more scrutiny to roof conditions and overall property resilience.

Non-weather losses are shifting. Plumbing and appliance-related water damage has declined, and theft claims have decreased; however, replacement costs for high-value items such as fine art and jewelry remain elevated, resulting in meaningful losses when they occur. Liability exposures also remain important for high-net-worth customers.

Carriers continue tightening standards, refining terms and raising deductibles to manage loss volatility. Capacity is being recalibrated based on regional loss patterns, while specialty carriers expand selectively where conditions are favorable. For customers with complex or high-value properties, proactive mitigation, accurate valuations and thorough submissions remain essential.

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Geographic & Regional Differences

Rate Outlook

Impacts & Customer Considerations

Consider adding flood insurance

Flood policies help protect against heavy rainfall, runoff and rising groundwater — events often not covered by standard homeowners insurance.

Strengthen cyber resilience

Cyber incidents are increasing, and coverage varies by insurer. A comprehensive personal cyber policy can provide meaningful protection.

Schedule a comprehensive coverage review

An annual review helps align coverage with lifestyle changes, home updates and current valuations.

Invest in resilience and mitigation

Low-temperature alarms, automatic water shutoff devices, upgraded roofing, improved drainage and sensor-based monitoring can reduce losses and support more favorable underwriting.

In wildfire regions, defensible space planning and coordination with local fire departments add further protection.

Maintain thorough documentation

Detailed records of construction, maintenance and mitigation strengthen submissions and support better terms and limits, especially in high-risk areas.

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