Home claims cost more than ever, even as they happen less often

LexisNexis Risk Solutions released its 2026 U.S. Home Trends Report, and the headline number is claim severity: the average cost of a home insurance claim reached an all-time high in 2025, up roughly 26% from the year before. Claim frequency, how often claims get filed, went the other direction and declined.

That combination explains a renewal notice a lot of Florida homeowners find confusing. You had no claims, your neighbors had no claims, and the premium still went up. Rates follow what a claim costs to settle, and repair labor, materials, and roof replacement have all gotten more expensive. The practical response is to check that your Coverage A limit still reflects what rebuilding costs today, because underinsuring is what turns a covered loss into an out-of-pocket one.

An independent agent can rerun your replacement-cost estimate and re-shop the policy so you are not paying a hard-market rate on a softening market.