2026 MARKET TRENDS

Risk Mitigation

Overview

A strong focus on home resiliency continues to shape underwriting outcomes across both standard market and high-net-worth homeowners programs. As capacity varies by geography and carrier appetite, proactive mitigation has become critical for securing favorable terms. Homes equipped with water-leak detection, central-station alarms, backup generators and wildfire-resilient landscaping are more likely to receive preferred pricing and broader coverage.

Properties without adequate mitigation may face higher deductibles, revised terms or limited coverage availability, particularly in wildfire, hurricane and severe-storm zones.

Market Conditions

With underwriting considerations tightening across many regions, mitigation has become a primary factor in securing and maintaining quality homeowners coverage. Carriers are increasingly differentiating between well-protected properties and those lacking basic safeguards. Homes with recent system upgrades, reliable water-shutoff technology, monitored security, hardened exteriors or wildfire-resistant features are demonstrating stronger insurability and may qualify for more favorable terms.

Properties without adequate mitigation may face higher deductibles, revised terms or limited coverage availability, particularly in wildfire, hurricane and severe-storm zones. In certain jurisdictions, carriers may also require mitigation measures before issuing or renewing coverage. Carrier appetite continues to favor resilient homes — properties designed, maintained, and retrofitted to better withstand climate-driven losses—reflecting broader trends in capacity management and loss prevention.

Use of Technology

Technology is reshaping how homes are assessed, underwritten and protected. The expansion of the Insurtech market has given carriers access to powerful tools that combine claims histories, weather intelligence and property-level attributes to inform underwriting decisions. Online property data now provides insurers with upfront insight into roof age, system conditions and overall property characteristics before formal inspections occur. Carriers are increasingly using virtual inspections, measurement applications and drones to assess homes, often completing inspections without an in-person visit. These tools increase efficiency, particularly in remote or high-demand regions.

Technology also extends to incentives. Many carriers offer credits or equipment discounts for homeowners who install qualified mitigation devices such as automatic water-shutoff systems, temperature alarms, electrical monitoring systems and central-station fire alarms.

Construction Costs & Building Code Impacts

Construction costs continue to rise, driven in large part by increasingly complex building codes and regulatory requirements. Government regulations account for roughly one-quarter of the cost of a new single-family home, including zoning, permit fees and inspections. Compliance often requires specialized materials — such as fire-resistant windows and higher-performance insulation — along with trained labor to install advanced systems. Delays in securing approvals and navigating inspections also extend project timelines and increase overall expenses.

Although the upfront cost burden is significant, updated codes deliver long-term value. Homes built to current standards are better able to withstand events such as hurricanes, wildfires and earthquakes, reducing future losses and improving insurability. Energy-efficient construction can lower utility expenses, and resilient homes may qualify for more competitive insurance terms. Broadly, every dollar invested in mitigation can yield several dollars in avoided future losses.

Geographic & Regional Differences

Catastrophe losses remain elevated, placing continued pressure on premiums, deductibles and underwriting.

Customers can prioritize mitigation actions based on geographic risk factors:

Impacts & Customer Considerations

Mitigation planning should begin well before construction or renovation. Early consultation between the homeowner, builder and broker ensures that local terrain, weather and environmental factors are considered when selecting materials and designing resilient structures.

Proactive Risk Mitigation Actions & Devices:

Whole-home automatic water-shutoff systems
UL-certified security and fire alarms with monitoring service
Proactive identification, monitoring and prevention of electrical hazards
Adoption of IBHS FORTIFIED or equivalent roof standards
Flood-protection improvements including backflow valves, sump pumps and drainage maintenance
Strong family cybersecurity practices

Develop Home Maintenance Plan

Establish formal maintenance routines for roofs, HVAC, plumbing, electrical systems and other critical components
Maintain logs of installation dates, photographs, inspection results and mitigation documentation to support underwriting and renewal discussions

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Brown & Brown, Inc. and all its affiliates, do not provide legal, regulatory, tax guidance and/or advice. If legal advice, counsel or representation is needed, the services of a legal professional should be sought. The information in this document is intended to provide a general overview of the topics and services contained herein. Brown & Brown, Inc. and all its affiliates make no representation or warranty as to the accuracy or completeness of the document and undertakes no obligation to update or revise the document based upon new information or future changes.