Homeowners Reduce Insurance Coverage Costs
By Chad T. Wilson Law Firm Staff — based on reporting by JC Hallman and John Dobberstein December 3rd, 2025
As we head into 2026, many homeowners are renewing their insurance policies only to find higher deductibles and more complex coverage terms than in past years. Escalating insurance expenses have become increasingly prevalent over the last several years, forcing homeowners to make difficult decisions about coverage.
According to a recent home insurance study by J.D. Power, “47% of homeowners in 2025 have experienced a premium increase in the past year.”
A Growing Trend Toward Higher Out-of-Pocket Costs
To manage rising insurance expenses, more homeowners are opting to accept the risk of a higher deductible. According to the Insurance Information Institute, “increasing your deductible from $500 to $1,000 may decrease your premium by approximately 10% to 25%” (Realtor.com).
Deductibles are the amount you must pay before your insurance coverage applies, and they are rising across many markets. One strategy homeowners are using to lessen premium increases is “opting for higher deductibles” (Realtor.com). While this can reduce insurance costs, it also means homeowners bear more of the financial risk if property damage occurs.
What Areas Are Being Impacted the Most
Homeowners in risk-prone areas are experiencing the most significant changes. According to the National Bureau of Economic Research, insurance premiums often rise fastest in areas with the highest risk of natural disasters, such as hurricanes or wildfires (“insurance premiums often rise in areas with the highest risk of natural disasters such as hurricanes or wildfires”) (Realtor.com).
Additionally, Rick McCathron, President and CEO of Hippo Home Insurance, has stated that “higher deductibles are becoming more common across the Midwest and other regions heavily affected by hail and convective storms,” highlighting the increasing severity of weather patterns (Realtor.com).
Start the Year by Reviewing Your Coverage
Before renewing your homeowners insurance policy, it is important to take the time to evaluate your current coverage. Insurance companies routinely adjust policy terms year to year, and 2026 is no exception.
With rising construction costs, inflation, and more frequent severe weather events, insurers are changing how policies are structured by including how deductibles are calculated and applied. A careful review now can help homeowners avoid unpleasant surprises later and better prepare for potential claims.
Protect Yourself Before a Claim Happens
Taking the time to review your policy now is critical, but understanding how those provisions are applied during a claim is equally important. If your claim is delayed, underpaid, or denied, you do not have to face the insurance company alone.
At Chad T. Wilson, we help businesses and homeowners hold insurers accountable for the full benefits they are owed under their policies. If you need assistance with a property insurance claim, contact our firm today for a free consultation.
