Homeowners Insurance Premiums to Rise in 2026
Homeowners will likely see 6.4% premium growth in 2026, while auto policyholders may benefit from a slight 0.6% decline.
Updated on Oct. 26, 2026 in Insurance
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Property and casualty insurers in the United States expect an industrywide underwriting profit for 2026, with a projected net combined ratio of 94.0. This performance suggests insurers will spend 94 cents on claims and expenses for every dollar of premiums collected, largely due to lower catastrophe losses compared to the prior year.
Why it matters
A stable industry outlook provides a foundation for insurance markets as homeowners face premium increases, even as some personal auto costs begin to soften. Understanding these broad underwriting trends helps households anticipate potential adjustments in the price and availability of their essential insurance coverage.
The projected 2026 industrywide net combined ratio of 94.0 indicates an underwriting profit, supported by a homeowners insurance direct incurred loss ratio of 49% in the first half of the year. Homeowners may see premium growth of 6.4%, while personal auto premiums are forecast to decline by 0.6%.
The details
The net combined ratio measures an insurer's financial health by comparing claims costs and administrative expenses against the premiums received from policyholders. When this ratio falls below 100, the company earns an underwriting profit. The 2026 projection of 94.0 reflects reduced catastrophe losses following the significant impact of wildfires in Los Angeles during the first half of 2025.
Timeline
First half 2025: Los Angeles wildfires occurred.
First half 2026: Homeowners insurance loss ratio hit 49%.
2026: Industrywide net combined ratio is projected at 94.0.
2027: Slower industry growth is anticipated.
2028: Replacement cost acceleration is expected.
Money Landscape
The insurance industry is navigating a multi-year cycle of claims-cost pressures balanced against interest-rate impacts. This 2026 outlook follows a period of heightened catastrophe activity, such as the first half 2025 Los Angeles wildfires, which pressured loss ratios across the sector.
Homeowners should budget for a 6.4% increase in premiums, while those covering vehicles may find minor relief with projected 0.6% declines in personal auto premiums. Consult with a licensed insurance agent to review your current policy terms and verify if your coverage aligns with your budget.
The takeaway
Insurance industry performance remains sensitive to catastrophe losses and interest rate shifts. Review your annual premium notices carefully to identify changes and consult a financial professional to ensure your risk coverage aligns with your household budget.
Further reading
For more on managing your coverage costs, visit Insurance.
Source note: This article includes information reported by MyChesCo.
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