Homeowners insurance premiums are set to rise 8% in 2025, driving state-level reforms in California and Florida aimed at stabilizing markets impacted by natural disasters and regulatory challenges.

Homeowners insurance premiums in the U.S. have risen 9.3% since 2024, driven by climate risks and increased deductibles, challenging affordability and complicating mortgage closings. The E&S market grows in catastrophe-prone states.