Newrez Finds 64% Homeowners Insurance Rise Since 2021

newrez said average annual homeowners insurance premiums rose 64% from year-end 2021 to year-end 2025, even as the growth rate slowed to 10% in 2025. For homeowners, that leaves costs far above the 2021 level even after the pace eased.

Across about 1.2 million serviced residential mortgage loans, the average annual premium climbed from $1,597 to $2,625. Shane Ross, Newrez head of servicing, said homeowners insurance has become a much larger component of housing costs and that mortgage delinquency rates remain below historical averages.

Arizona and Alaska split 94%

Arizona recorded the largest average annual insurance premium increase from 2021 to 2025 at 94%, while Alaska posted the smallest rise at 27%. That spread shows how uneven premium pressure has been across states, with some borrowers facing a much steeper jump than others over the same period.

At year-end 2025, Louisiana had the highest average annual homeowners insurance premium at $4,238, followed by Florida at $4,060 and Texas at $3,952. Those three states sat well above the Newrez average of $2,625, putting a sharper cost burden on borrowers in the most expensive markets.

Matic savings average $928

Newrez said customers who switched carriers through Matic saved an average of $928 in 2025, a concrete offset against the higher premium base. For a borrower already paying above the national average, that kind of reduction can narrow the gap without changing the mortgage itself.

Ross said: “For many Americans, their home is their largest and most important asset, and this is why it’s especially important for borrowers to understand how insurance fits into their overall cost of homeownership and to stay proactive about reviewing coverage.” The study pairs that advice with a broader resilience signal: even as insurance and other housing costs rose, overall mortgage delinquency rates remained below historical averages.

Newrez also said home values continued to rise from 2021 to 2025 by roughly $50,000 according to the Zillow Home Value Index. That puts higher insurance bills into a larger housing-cost picture, where owners may have more equity on paper but still need to manage annual carrying costs closely.