Utah Leads in Homeowners Insurance Nonrenewals in 2025
Utah stunned the insurance industry by leading the nation in homeowners policy nonrenewals in 2025, a dramatic shift from its 17th place just a year prior.
An analysis using data from the National Association of Insurance Commissioners (NAIC) reveals that Utah insurers nonrenewed 4.45% of homeowners policies in 2025. This rate is alarmingly high, as noted by Weiss Ratings, marking an 8.4-fold increase since 2018 and more than doubling from 2024. For Utah homeowners, this surge indicates growing challenges in maintaining insurance coverage, with significant implications for both affordability and policy terms.
Rising Nonrenewals and Market Dynamics
Industry leader Dr. Martin D. Weiss of Weiss Ratings describes Utah's rapid ascension to the top of the nonrenewal chart as a "loud alarm bell" for homeowners. Many affected homeowners face the prospect of turning to surplus-lines insurers under such conditions. While these policies can provide coverage when traditional options contract, they often come with higher costs, insufficient regulatory oversight, and little protection against insurer insolvency.
California, in tandem with Utah, has faced its own challenges. With a 2.93% nonrenewal rate in 2025, California remains high on the list despite a slight decrease from 2024. As a result, surplus-lines premiums have soared, skyrocketing from $85 million in 2018 to $1.3 billion in 2025.
The Rise of Surplus-Lines Insurance
| Year | Utah Surplus-Lines Premiums | California Surplus-Lines Premiums |
|---|---|---|
| 2018 | $1.1 million | $85 million |
| 2025 | $13.7 million | $1.3 billion |
As traditional insurers withdraw, surplus-lines options have become increasingly popular despite the higher cost and heightened risk involved. In Utah, premiums grew over 12-fold from 2018 to 2025, and analogous patterns are visible in California. Surplus-lines insurers, however, typically return less money in claims payouts—49 cents per premium dollar compared to 71 cents from regular insurers over the past five years—leaving policyholders with reduced financial returns when claims arise.
Implications for Industry Stakeholders
For insurance professionals, understanding this shifting landscape is crucial. The rise in nonrenewals and a shift towards surplus-lines underscore an emerging risk scenario that demands attention from insurers, brokers, and risk managers. Carriers need robust strategies to assess and adjust their underwriting practices in response to escalating natural disasters and evolving state regulations. Meanwhile, agents and brokers must better educate their clients on these developments and the implications for coverage costs and security.
As Dr. Martin D. Weiss emphasizes, these trends present multifaceted challenges that could affect the integrity of the insurance market and protection for homeowners. It's a call for stakeholders to proactively anticipate market changes, ensuring policyholders remain well-informed and adequately protected.