Newrez LLC released results from an internal review of about 1.2 million mortgages it services, showing homeowners insurance bills climbed sharply from 2021 through 2025. The company said the average annual premium rose 64% over that span, and the rate of increase slowed in 2025 compared with prior years.
Newrez, which is owned by Rithm Capital Corp. (NYSE: RITM), said the analysis excluded lender‑placed coverage and focused on premiums paid from escrow accounts at each year‑end.
Homeowners Insurance Costs Surge
According to Newrez's portfolio data, the average annual homeowners insurance premium increased to $2,625 by year‑end 2025 from $1,597 at year‑end 2021, a 64% jump. Premium hikes were in the double digits in 2022, 2023 and 2024 before easing to a 10% gain in 2025, the slowest rate of increase since 2021.
Shane Ross, Newrez's head of servicing, tied the run‑up to weather‑related losses and higher rebuilding expenses, saying homeowners insurance has become a much larger component of housing costs as more frequent severe weather and higher construction costs put pressure on insurers.
Ross also pointed to borrower performance, noting that while certain borrower segments face more acute affordability pressures, overall mortgage delinquency rates remain below historical averages, suggesting resilience even as insurance and other housing costs rise.
The company's release also noted that home values rose from 2021 to 2025 by roughly $50,000 based on the Zillow Home Value Index.
Geographic Gaps in Premium Levels
Newrez said pricing differences were wide across states in its serviced book, with Louisiana showing the highest average annual premium at year‑end 2025 at $4,238. Florida and Texas followed at $4,060 and $3,952, respectively, with Nebraska and Colorado rounding out the top five.
The study also highlighted how quickly costs moved in certain places, noting Arizona posted a 94% increase from 2021 to 2025 and that 11 states saw increases of at least 75% over the same window. Alaska had the smallest rise at 27%, and only five states recorded increases below 50%.
In large metro areas, Newrez said the Miami region carried the highest average annual premium among the 20 most populous MSAs it reviewed, at $5,546 by year‑end 2025. Seattle was the lowest in that set at $2,087, while Phoenix had the biggest jump over 2021-2025 at 94%.
How Homeowners are Trying to Manage Bills
Homeowners may be able to reduce insurance spending by adjusting deductibles, bundling home and auto policies, making property upgrades that lower risk, or shopping carriers. Using 2025 data from Matic, a Newrez partner, the company said customers who switched insurers through the platform and had prior premium information available saved an average of $928.
Ross urged borrowers to keep insurance in mind as part of total ownership costs, emphasizing that, for many Americans, a home is their largest and most important asset, and that borrowers should understand how insurance fits into their overall cost of homeownership and stay proactive in reviewing coverage.
The analysis examined escrowed premiums for preferred homeowners insurance at year‑end across 2021-2025 and excluded lender‑placed insurance.