Newrez Study Finds Homeowners Insurance Premium Rate of Growth Slowed, Despite 64% Increase Since 2021

Key Terms

lender-placed insurance financial

Lender-placed insurance is a policy a lender or loan servicer buys to protect its financial interest when a borrower fails to keep required property or hazard coverage. It matters to investors because the premiums and profits flow to insurers or servicers rather than borrowers, can raise borrower costs and default risk, and therefore affect revenue, regulatory scrutiny and the credit quality of mortgage-related assets — like a landlord insuring a tenant’s unit and billing the tenant for it.

metropolitan statistical areas technical

Metropolitan statistical areas (MSAs) are geographic regions defined by population size and the degree of economic and commuting integration around a central city, similar to how a school district groups nearby neighborhoods that share resources and routines. Investors use MSAs to evaluate local demand, labor markets, real estate trends and regulatory environments — factors that influence company sales, property values and the risk profile of investments tied to specific places.

asset-backed deal financial

An asset-backed deal is a financing arrangement in which a pool of tangible assets—like loans, receivables, leases, or property—is used as the source of repayment for investors who buy the deal. It matters to investors because the cash flow and risk depend on the quality and performance of those underlying assets; think of it like buying a bundle of rental properties where your returns follow the tenants’ rent payments rather than a company’s general profit.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

• Analysis of approximately 1.2 million Newrez-serviced residential mortgage loans finds the average annual homeowners insurance premium rose from $1,597 to $2,625 between year‑end 2021 and year‑end 2025, a 64% increase, but growth slowed to 10% in 2025, the slowest rate since 2021.

• Although insurance costs rose, overall delinquencies are currently below historical averages, signaling resilience among homeowners.

• Arizona recorded the largest average annual insurance premium increase (+94%) from 2021 to 2025, while Alaska had the smallest cost increase (+27%).

• According to 2025 data provided by Matic, a Newrez partner, Newrez customers who switched carriers through Matic saved an average of $928.

FORT WASHINGTON, Pa.--(BUSINESS WIRE)-- Newrez, a top five mortgage lender and servicer, today released findings from an analysis of roughly 1.2 million Newrez-serviced residential mortgage loans. According to the study, the average annual homeowners insurance premium increased 64% between year-end 2021 and year-end 2025 when the average premium grew from $1,597 to $2,625.

The full methodology and study can be found here.

While homeowners saw double‑digit premium increases between 2022 and 2024, the rate of increase slowed in 2025 to 10%, the slowest rate of increase since 2021. Additionally, even as insurance premiums increased, home values continued to rise from 2021 to 2025—by roughly $50,000 according to the Zillow Home Value Index—supporting overall homeowner equity and longer‑term household balance sheets.

“Homeowners insurance has become a much larger component of housing costs for many homeowners since 2021, as more frequent severe weather events and higher rebuilding costs are putting pressure on insurers,” said Newrez Head of Servicing, Shane Ross. “At the same time, while certain borrower segments face more acute affordability pressures, overall mortgage delinquency rates remain below historical averages, suggesting a broader level of homeowner resilience even as insurance and other housing costs rise.”

Carrier Shopping May Present Savings Opportunities
As insurance costs rise, some homeowners could find savings by comparing coverage options across carriers. According to 2025 data provided by digital insurtech platform Matic, a Newrez partner, Newrez customers who switched insurance carriers through Matic and for whom prior premium data was known saved an average of $928.

Matic also indicated that savings opportunities may be available, depending on the homeowner’s circumstances, through deductible changes, home-and-auto bundling, or property improvements that may reduce risk.

“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,” Ross added. “At Newrez, our mission is to make home happen throughout the homeownership journey, and we aim to support homeowners with tools, resources, and strategic partnerships that help them manage costs and make confident decisions at every stage of ownership.”

Insurance Premiums by Region
Premiums varied meaningfully by geography within the Newrez-serviced portfolio. At year-end 2025, Louisiana had the highest average annual premium ($4,238), followed by Florida ($4,060) and Texas ($3,952). Regional differences may reflect a range of market factors, including catastrophe exposure, rebuilding costs, underwriting practices, and other carrier-specific considerations.

The five states with the highest average annual homeowners insurance premiums at year-end 2025 were:

• Louisiana ($4,238)
• Florida ($4,060)
• Texas ($3,952)
• Nebraska ($3,898)
• Colorado ($3,854)

Arizona recorded the largest increase from 2021 to 2025 (+94%), and 11 states recorded increases of at least 75% during that period. Only five states recorded increases below 50%, with Alaska posting the smallest increase at 27%.

The five states with the largest homeowners insurance premium increases from 2021 to 2025 were:

• Arizona (+94%)
• Idaho (+88%)
• Iowa (+83%)
• South Dakota (+83%)
• Utah (+82%)

Among the 20 most populous metropolitan statistical areas (MSAs) reviewed, the Miami area had the highest average annual premium at year-end 2025 ($5,546), while the Seattle area had the lowest ($2,087). Phoenix recorded the largest increase from 2021 to 2025 (+94%), while Miami recorded the smallest increase among the 20 MSAs reviewed (+49%).

Methodology
Newrez analyzed approximately 1.2 million residential mortgage loans that it serviced and that were escrowed for preferred (non-lender-placed) homeowners insurance across two periods: December 31, 2016 through December 31, 2020, and December 31, 2021 through December 31, 2025. Premium data reflects annual homeowners insurance premiums disbursed from borrower escrow accounts, measured as of the final day of each calendar year (December 31). Lender-placed insurance was excluded because of its materially higher cost and non-comparable nature. To improve comparability across periods, the 2021–2025 analysis included loans originated in 2020 or later.

For the full methodology and findings, please visit: https://www.newrez.com/blog/industry-insights/homeowners-insurance-costs-are-rising/.

About Newrez
Newrez LLC (“Newrez”), a Rithm Capital Corp. (NYSE:RITM) company, is a top five mortgage lender and servicer, according to Inside Mortgage Finance, dedicated to providing a customer-first experience throughout the homeownership journey. Newrez offers industry-leading servicing capabilities for owned MSRs and for third-party clients, as well as a robust origination model with presence in the retail, wholesale, correspondent, and consumer direct verticals. Newrez's mission is “to do everything possible to make home happen” through a wide array of products and services. Newrez was established in 2008 and is headquartered in Fort Washington, PA. To learn more about Newrez, visit www.newrez.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260430783450/en/

Media Contacts
Ryan Feldman
Director, Public Relations
Ryan.Feldman@Newrez.com

David Guarino
Immortality PR & Communications LLC
Dave.Guarino@immortality-pr.com

Source: Newrez LLC