Rising homeowners insurance premiums have forced millions of American property owners to rethink their household budgets over the past two years.
A first-of-its-kind analysis from the National Association of Insurance Commissioners (NAIC) suggests that rising costs may be only one part of a much larger coverage threat
The NAIC just published a review covering seven years of homeowners insurance data collected by state regulators. The analysis spans 2018 through 2024 and draws on filings submitted by 715 insurance carriers that wrote coverage across the country. Premium increases on their own are striking, with inflation-adjusted hikes reaching as high as 43% in the West, the NAIC found.
But deeper in the report is a trend that could leave policyholders without coverage, regardless of a consistent history of on-time premium payments. Company-initiated non-renewal rates have climbed across every U.S. region A non-renewal occurs when an insurance company chooses not to extend a policy after its term expires, regardless of the policyholder’s payment history. Across all four NAIC geographic regions, company-initiated non-renewal rates climbed between 96% and 216% during that seven-year span, the NAIC report found.