The market for high-net-worth (HNW) property insurance in the U.S. has seen a major change over the last year to year and a half, with shifts happening quickly and unevenly across different ZIP codes. Yas Nahali, executive vice president at Amwins, says the biggest factor today isn’t so much how much carriers want to write business, but how much capacity they actually have.
While overall demand has eased a lot since late 2024, Nahali points out that some areas still have strong pockets of activity — often varying block by block. In places like Malibu, Monroe County, and parts of The Hamptons, a few homes valued at $30 million to $40 million can easily use up a carrier’s entire line size. Even if companies want to underwrite these homes, limits on balance sheets and reinsurance can restrict the amount of coverage available.
At the same time, excess and surplus (E&S) carriers, as well as those using E&S policies, are starting to take on risks they wouldn’t have considered a year ago, especially if the homes meet certain mitigation standards. This shift isn’t about opportunism; it’s a careful strategic move. Many insurers spent the past 3-4 years pulling back, reviewing their books, and reconsidering risk exposure. With recent hurricanes being less severe and better underwriting data now available, some are stepping back into the market in focused ways.
New players, including recently recapitalized managing general agents (MGAs) and carriers rated by agencies like Demotech, are increasing competition for business. For brokers, this means they can compare offers more easily and push carriers for better terms, like broader water coverage or lower wildfire deductibles. Nahali notes brokers are using these options to pressure carriers to improve their deals—though capacity still remains limited, especially because HNW insurance involves large line sizes and finite capacity.
Given the tight market, Nahali stresses that brokers need to start client conversations early with clear questions about budget, risk tolerance, and must-have coverages. This is especially important in areas prone to natural disasters, such as Key West or wildfire zones in Colorado and Washington. Knowing details like premium limits, client willingness to share risk, and acceptance of higher deductibles helps match policies to clients and find the right carrier. According to Nahali, this upfront clarity helps set realistic expectations and makes marketing the risk much smoother.
One notable feature of the current market is the rise in higher deductibles, especially for catastrophe-exposed properties. Wildfire deductibles of 50% and multimillion-dollar deductibles for other perils are common in areas like brush-heavy regions with high fire risk. Some clients buy back deductibles or add excess wildfire layers to reduce risk, but many ultra-wealthy homeowners prefer to keep higher risk, seeing it as a smart financial choice. Nahali mentions some clients don’t mind paying to rebuild out of pocket if their luxury homes are damaged—they’d rather save money on premiums.
Mitigation measures have become essential. Features like water shutoff valves, leak detection, ember-resistant vents, brush clearing, and impact-resistant roofing are now often required, not just nice extras. Nahali says this shift is a positive one. These precautions have proven their value through better underwriting results and lower claims in many markets. Clients often see savings on premiums over time that cover the cost of installing these safety features, especially for secondary or vacant homes.
As for what lies ahead in 2026, Nahali describes the market as a “patchwork.” Some neighborhoods have stabilized, but others remain volatile just a street away. There are two possible trends this year: a gradual calming where more MGAs grow and disciplined underwriting lets standard insurers return to prime risks, or a possible setback caused by a major, widespread catastrophe that strains capacity again. Still, Nahali is hopeful that strong mitigation rules and careful risk selection will keep the market steady. She notes that recent wildfire losses in January were manageable and that the industry is prepared to handle a few more events without major disruption.
Overall, the market for insuring high-value homes remains challenging but is adjusting. With some capacity coming back and more tools for brokers and clients, the landscape is evolving. Still, careful conversations about risk and coverage choices have never been more important.