If you’ve opened a home insurance bill over the last few years, you probably braced yourself for bad news. Between sky-high inflation, supply chain snags, and relentless weather events, homeowners have been hit with massive premium hikes year after year. But if you’re looking for a silver lining, the latest data suggests the market might finally be turning a corner.
According to the 2026 Home Insurance Report released by digital insurtech platform Matic, premium growth is moderating, and insurance carriers are stepping back into the market to compete for your business. Drawing from an extensive dataset of 3 million quotes and policies during the first half of 2026, Matic found that policy renewal rate hikes slowed to an average of 10.6%—a huge relief compared to the 19.4% jump in 2025 and 28% in 2024. Even better, a record 11.7% of renewing policyholders actually saw their premiums decrease, up from 7.4% last year and under 5% in 2024.
For new policies, the average annual premium now sits at $2,057, representing a modest 5.9% increase year-over-year. That is down significantly from the 18.7% peak recorded in 2024. Why the shift? Insurers spent the last couple of years raising rates to restore their financial footing. Now that pricing has caught up with baseline risks, carriers are opening their doors again. In fact, Matic reported that the average number of quotes available per individual jumped 27% over 2025 and 74% from its 2024 low point.
As Ben Madick, CEO and Co-founder of Matic, explained in the report:
“The home insurance market is beginning to look very different. After several years of tightening underwriting guidelines and raising premiums to restore profitability, many carriers are now loosening those restrictions and competing for customers again. For homeowners, that means more options to choose from and slower premium growth than we’ve seen in recent years.”
However, this doesn’t mean overall housing costs are cheap. Matic notes that nearly nine out of 10 homeowners are still paying the same or more than they did last year. In state-specific markets like Florida, California, and New Jersey, severe climate risks and local regulations are still driving double-digit premium increases. Additionally, insurance now makes up roughly 14% of the average monthly mortgage payment, according to Federal Reserve Bank of Dallas research cited in the report.
To manage ongoing risks, carriers are adopting hyper-precise underwriting tools. Insurers now evaluate specific features like roof condition and age using aerial imagery. Matic’s data reveals that homeowners with roofs aged 1 to 5 years save $189 on average compared to those with roofs aged 11 to 15 years. Carriers are also incentivizing smart home technology like automatic leak detectors to prevent losses before they happen.
The takeaway for homeowners in 2026? Shopping around is finally worth your time again. With more carriers competing for coverage, taking time to compare quotes could translate into meaningful savings on your annual bill.
Sources
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