2025 Homeowners Insurance Outlook: What It Means for You
Will Your Home Insurance Rates Increase Again in 2025?
The short answer: For many homeowners, yes.
But there’s more to the story. Rising premiums, policy restrictions, and new industry trends will make securing the right home insurance more challenging than ever.
So, what’s changing—and how can you protect yourself? Let’s dive into what’s driving these shifts and what you should do to stay ahead.
What’s Driving Home Insurance Changes in 2025?
Several factors are shaping the 2025 homeowners’ insurance market:
✔ Climate risks are increasing – More severe weather events are leading to higher claims.
✔ Construction costs are rising – Repairs and rebuilding are getting more expensive.
✔ Insurance companies are tightening restrictions – Some are limiting coverage or dropping high-risk policies.
At Trailstone Insurance, we sit on agency councils for major insurers like Progressive, Allstate, and National General—so we have an inside look at the industry trends impacting you.
Let’s break down six key changes coming in 2025.
6 Major Home Insurance Changes in 2025 (and How They Affect You)
1. Higher Deductibles Will Become Standard
Many insurance companies are increasing minimum deductibles, meaning homeowners will pay more out of pocket before insurance kicks in.
🚨 Example: Some carriers now require:
✔ A minimum $2,500 deductible
✔ A 1% deductible based on home value (e.g., a $5,000 deductible for a $500,000 home)
💡 Tia Tip: Start building an emergency fund now to cover higher deductibles when needed.
2. Fewer Insurance Options in High-Risk Areas
🚨 Some insurers are restricting new policies based on:
✔ Location (especially in wildfire or hurricane-prone areas)
✔ Claim history (e.g., State Farm now limits new policies to homeowners with no more than ONE claim in five years).
If you’ve had multiple claims, finding coverage may become harder.
💡 Tia Tip: If you’re buying a home, check the insurance requirements before you purchase.
3. Roof Coverage Is Changing (ACV vs. Replacement Cost)
🚨 Many insurers are switching from Replacement Cost Value (RCV) to Actual Cash Value (ACV) for roof coverage.
✔ RCV: Pays for the full cost to replace your roof.
✔ ACV: Pays for the depreciated value (which could be much lower).
🔹 Example: If a 10-year-old roof costs $20,000 to replace, ACV coverage might only pay $8,000, leaving you with a big out-of-pocket cost.
💡 Tia Tip: Keep your roof well-maintained and check your policy to see how your roof is covered.
📺 Watch my video on ACV vs. RCV here:
[LINK: https://youtu.be/Whs4gbPDVVQ]
4. Home Insurance Premiums Will Keep Rising
Home insurance costs are increasing due to higher reinsurance rates.
✔ Reinsurance = Insurance for insurance companies
✔ Higher reinsurance costs = Higher homeowner premiums
🚨 Even if you haven’t filed a claim, your premium could still go up because of these industry-wide increases.
💡 Tia Tip: Shop around annually to ensure you’re getting the best deal.
5. Bundled Policies Are Becoming the Standard
Many insurance companies now require you to bundle home and auto insurance to qualify for lower rates.
🚨 Example: A standalone homeowners’ policy could cost 30% more compared to a bundled home & auto policy.
💡 Tia Tip: Bundling can save you hundreds—ask your agent if it’s right for you.
6. More Policy Non-Renewals
🚨 One of the most concerning trends: Insurers are canceling long-time customers’ policies based on:
✔ Fire zone risk
✔ Credit score changes
✔ Frequent claims
🚨 Example: State Farm is non-renewing policies for homeowners with two or more claims—even after decades of coverage.
💡 Tia Tip: If you receive a non-renewal notice, act quickly—securing a new policy can take time.
📺 Watch my video on non-renewals and what to do next:
[LINK: https://youtu.be/puuLjM122_k]
How to Navigate These Changes & Stay Protected
Now that you know what’s coming, here’s what you can do to stay ahead:
1. Work with an Independent Insurance Broker
🚀 Why? Unlike captive agents (who work for one company), we shop over 40 A-rated carriers to find you the best rates and coverage.
At Trailstone Insurance Group, we:
✔ Compare multiple policies so you don’t overpay
✔ Find hidden discounts and coverage options
✔ Provide expert guidance based on your needs
2. Shop Your Insurance Annually
✔ Insurance rates change every year—if you’re not shopping around, you could be overpaying.
✔ We recommend reviewing your coverage annually to find better pricing and avoid coverage gaps.
3. Build an Emergency Fund for Higher Deductibles
✔ Set aside extra savings to cover increasing home insurance deductibles.
✔ Consider a deductible buyback policy if you’re concerned about out-of-pocket costs.
4. Keep Your Home Well-Maintained
✔ A well-maintained home = lower risk = better rates.
✔ Focus on your roof, HVAC, and plumbing systems to prevent costly claims.
Final Thoughts: Be Proactive & Stay Protected
🚨 Home insurance is changing—but you don’t have to navigate it alone.
✔ Rates are rising—but shopping around can save you hundreds.
✔ Insurers are getting stricter—but knowing the rules helps you stay covered.
✔ Trailstone Insurance Group is here to help—we’ll find you better rates, better coverage, or both.
📞 Ready to Get the Best Coverage for 2025?
🔹 Call us today for a free quote
🔹 Let us compare 40+ insurers to find your best option
📌 Don’t wait until renewal time—act now and lock in the best rates!