Homeowners insurance premiums for loans serviced by Newrez rose 64% from year-end 2021 to year-end 2025, even as the pace of increases slowed last year. The top five mortgage lender and servicer said Wednesday that the average annual premium in its portfolio climbed from $1,597 to $2,625 across roughly 1.2 million residential mortgage loans.
The company’s findings, released April 30, 2026, show how fast insurance costs have become a larger part of housing expenses. The increase in 2025 was 10%, the slowest rate of growth since 2021, but premiums were still up after double-digit gains in each of the previous three years.
Shane Ross, who was quoted in the analysis, said homeowners insurance has become a much larger component of housing costs for many homeowners since 2021, with more frequent severe weather events and higher rebuilding costs putting pressure on insurers. He said that while certain borrower groups 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.
The pattern was not uniform across the country. Arizona recorded the largest average annual insurance premium increase over the four-year period at 94%, while Alaska saw the smallest rise at 27%. The highest premiums at year-end 2025 were in Louisiana, where the average annual cost reached $4,238. Florida followed at $4,060, and Texas was third at $3,952.
Newrez also said customers who switched insurance carriers through Matic in 2025 saved an average of $928. That figure points to the pressure some borrowers are under as insurance bills continue to rise even after the broader pace of increases began to cool.
The study also put the insurance surge in the context of a housing market that stayed expensive on more than one front. Home values continued to rise from 2021 to 2025 by roughly $50,000, according to the Zillow Home Value Index used in the article, adding another layer to the affordability strain. The slower increase in 2025 may be a sign that the worst of the escalation has eased, but the level of premiums now being paid leaves homeowners with a much higher baseline than four years ago.
