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Personal Insurance Rates Continue to Climb in Q1 2025

HOMEOWNERS COVERAGE SEES LARGEST INCREASES

Personal insurance rates in the United States continued their upward trend in the first quarter of 2025, with the composite rate increasing to 4.9%, up from 4.0% in Q4 2024, according to the latest market data.

Homeowners insurance led the surge, particularly for high-value properties. Policies for homes valued over $1 million rose by 7.3%, while those under $1 million increased by 4%, up from 3.3% in the previous quarter.

“Homeowners insurance saw notable increases in Q1 — likely due to the lingering impact of recent California wildfires,” said Richard Kerr, CEO of Novatae Risk Group. “It often takes time for the market to respond to catastrophic events. Rates are now trending upward and could rise further as we head into hurricane season.”

Personal articles/fine art insurance rates also jumped significantly, moving from 2.3% to 4.3% over the quarter.

These findings are supported by the Risk & Insurance Alliance, which tracks market shifts and emerging trends across both commercial and personal insurance sectors.

A summary of the first quarter 2025 personal lines rates is set forth below

Personal Lines
Homeowners under $1,000,000 value	Up 4%
Homeowners over $1,000,000 value	Up 7.3%
Automobile	Up 4.3%
Personal Articles	Up 4.3%

About MarketScout, a Division of Novatae Risk Group

Founded in 2000, MarketScout, a Division of Novatae Risk Group, is an insurance distribution and underwriting company headquartered in Dallas, Texas. The company is a Lloyd’s Coverholder and MGA for US insurers with specialty expertise in workers’ compensation, private client solutions, energy, healthcare, fine art, equine, jewelry, professional liability, and many specialty programs. MarketScout’s company culture and sense of community encourages growth, learning and collaboration. The company has been named as one of the Best Places to Work in Insurance by Business Insurance for ten consecutive years. In November 2022, MarketScout joined Novatae Risk Group and Richard Kerr was named the combined companies’ CEO. California license #0D60423.