FORT WASHINGTON, PA — Homeowners insurance premiums for borrowers serviced by Newrez rose 64% between the end of 2021 and the end of 2025, though the pace of increases slowed this year and mortgage delinquencies remained below historical averages, according to an analysis released by the mortgage lender and servicer.
Newrez reviewed approximately 1.2 million serviced residential mortgage loans and found the average annual homeowners’ insurance premium increased from $1,597 to $2,625 over the four-year period.
The rate of premium growth slowed to 10% in 2025, marking the smallest annual increase since 2021 after multiple years of double-digit increases.
The company attributed rising insurance costs to more frequent severe weather events, higher rebuilding expenses, and broader pressure on insurers.
Shane Ross, head of servicing at Newrez, said delinquency rates have remained relatively stable despite rising housing-related expenses, indicating that many homeowners continue to maintain financial resilience.
Louisiana recorded the highest average annual homeowners insurance premium in the Newrez-serviced portfolio at year-end 2025, reaching $4,238. Florida followed at $4,060, while Texas averaged $3,952.
Arizona posted the largest premium increase between 2021 and 2025 at 94%, followed by Idaho at 88%. Alaska recorded the smallest increase at 27%.
Among the 20 largest metropolitan statistical areas reviewed, the Miami region had the highest average annual premium at $5,546, while Seattle had the lowest at $2,087.
Phoenix recorded the largest premium increase among major metro areas at 94%, while Miami posted the smallest increase at 49%.
Newrez also cited data from insurtech platform Matic showing that borrowers who switched insurance carriers through the platform saved an average of $928 in 2025 when prior premium information was available.
The analysis excluded lender-placed insurance policies because of their higher costs and focused on escrowed residential mortgage loans serviced between December 31, 2021, and December 31, 2025.
Full methodology and findings are available at https://www.newrez.com/blog/industry-insights/homeowners-insurance-costs-are-rising/.
Support the local news that supports Chester County. MyChesCo delivers reliable, fact-based reporting and essential community resources—free for everyone. If you value that, click here to become a patron today.