Insurance Changes and the New Reality for Homeowners: Understanding Rising Rates, Non-Renewals, and the Role of Home Watch
December 9, 2025
Diane Pisani
Across the United States, homeowners are experiencing unprecedented change in the insurance market. Premiums are rising sharply, long-time policyholders are receiving non-renewal notices, and certain regions are seeing major insurers withdraw entirely. Although the reasons vary by state, the trend is national. For homeowners who spend extended time away from their property, this shift introduces additional challenges and responsibilities.
Why Insurers Are Raising Rates or Leaving Certain Areas
Home insurance companies base pricing and availability on risk. Several national factors have dramatically changed that risk profile over the last decade.
1. More Frequent and Severe Weather Events
Many parts of the country have experienced stronger and more frequent hurricanes, wildfires, hailstorms, and flooding. When a single weather event affects thousands of homes, insurers may face losses far beyond what they collected in premiums. Repeated high-cost events cause companies to reconsider where they can sustainably operate.
2. Increased Cost to Repair or Rebuild
Even small claims have become more expensive. Construction materials, labor, and specialized services cost significantly more than they did a few years ago. As the cost to repair homes rises, insurance companies adjust premiums to match the financial exposure.
3. Rising Reinsurance Costs
Insurance companies also carry their own protection, known as reinsurance. When global losses climb, reinsurers raise their prices. Those increases are passed along to homeowners. In some markets, reinsurance has become the largest contributing factor to higher premiums.
4. Regulatory and Legal Pressures
Insurance regulations differ by state. In certain regions, insurers say they cannot charge premiums that reflect emerging risk. In others, litigation trends have increased the cost of settling claims. When the business environment becomes too unpredictable, insurers may reduce their presence or stop writing new policies.
Why Seasonal, Second, and Frequently Unoccupied Homes Are Under Increased Scrutiny
From an insurance perspective, there is a significant difference between a home that is occupied daily and a home that sits empty for weeks or months at a time. A property that is not being seen on a routine basis is more likely to experience a larger loss because early signs of trouble may go unnoticed.
Examples:
A minor plumbing leak in a regularly occupied home is often noticed quickly. In a home left unattended, that same leak can saturate floors and walls, lead to microbial growth, and cause significant deterioration before the owner is aware of the problem.
A loose shingle on an occupied home might be seen and repaired promptly. On an unoccupied property, water intrusion may continue for weeks.
These are the types of situations insurers factor into underwriting decisions. Many policies contain conditions related to occupancy, vacancy, heat maintenance in cold weather, and prompt reporting of damage. If a property is left unoccupied for extended periods, owners may be required to take additional steps to maintain coverage. In some cases, certain types of damage may not be covered if the home was not being checked as required by the policy.
What Homeowners Can Do to Strengthen Their Insurance Position
Although homeowners cannot control weather patterns or marketplace decisions, they can take practical steps to demonstrate responsible ownership and reduce the likelihood of large losses.
1. Reduce Risk Where Possible
Consider the home as an underwriter would. Address visible maintenance issues, keep trees trimmed away from structures where appropriate, maintain the roof, and ensure water is directed away from the foundation. Updating older systems may also lower the risk of a major claim.
2. Understand Your Policy Conditions
Policies vary widely. Homeowners should review requirements related to unoccupied time, temperature settings during winter months, and what constitutes a vacant property. If you plan to be away for an extended period, speak with your agent and ask what steps are required to remain in full compliance.
3. Document Maintenance and Improvements
Clear documentation can be beneficial when changing insurers or filing a claim. Keep records such as receipts for roof work, HVAC service, plumbing or electrical updates, and photographs that show the condition of the property. Organized documentation demonstrates that the home is being cared for and not neglected.
4. Review Options and Shop When Necessary
In a challenging market, shopping for insurance can produce significantly different outcomes. Rates can vary between companies, and underwriting guidelines change frequently. An independent agent may have access to carriers that others do not.
Where Home Watch Services Fit Into Today’s Insurance Landscape
Home Watch services provide scheduled visual observations of a property and report any obvious issues to the homeowner. This aligns directly with what many insurers expect when a property will be unoccupied for extended periods.
Home Watch does not replace licensed trades, does not perform repairs, and is not a home inspection, property management, or security service. It is a structured, documented process designed to help homeowners stay informed about the visible condition of their property when they cannot be there themselves.
Professional Home Watch visits can support homeowners in three important ways:
1. Demonstrating Reasonable Care
Many insurance policies contain an expectation that the homeowner will take reasonable steps to care for the property. Regular Home Watch visits create a clear record showing that the home has not been ignored. This can be useful if questions arise regarding how long a condition existed or whether it was addressed promptly.
2. Identifying Issues Earlier
While Home Watch does not prevent damage, routine visual observations can bring attention to visible concerns before they escalate. Early detection often results in smaller repairs rather than large claims.
3. Providing Organized Documentation
Home Watch reports, often including date-stamped photos and structured checklists, become part of the homeowner’s maintenance records. This documentation helps tell a clear story: the property is seen on a consistent schedule, and any concerns are communicated for the owner to address through appropriate professionals.
For insurers evaluating overall risk, a well-documented pattern of responsible ownership is favorable.
Home Watch is a visual observation of a home or property, looking for obvious issues and reporting them to the owner. It is not a home inspection, property management, or security service.
The home insurance environment is changing rapidly, and homeowners face new challenges related to rising rates, reduced availability, and stricter underwriting standards. While these broader trends are beyond individual control, homeowners can strengthen their position by reducing risk, maintaining documentation, understanding policy requirements, and ensuring that the property is being seen regularly when unoccupied.
For those who spend significant time away from their home, or for anyone who wants an added layer of oversight and documentation, professional Home Watch services offer a structured and reliable solution. They support the homeowner’s responsibility to remain informed about the visible condition of the property while maintaining clear boundaries about what the service does and does not provide.
