The property insurance market is starting to show signs of easing after several tough years. While the market still holds onto some strict rules set during the hard times, there are clear signs that things are beginning to soften.
Travis Hodges, managing director at VIU by HUB, shared his thoughts on the changes with Insurance Business. He explained that insurers aren’t dropping the tough underwriting standards they put in place before. However, some places where insurance used to be outright denied are now seeing the possibility of coverage.
In 2025, insurance companies had a strong financial year and are using those gains to make rates more attractive for customers. That optimism has turned into action, bringing more choices and better prices for clients.
According to Swiss Re’s US property and casualty outlook, premium growth is expected to slow down but remain steady, with returns on equity around 10% in both 2025 and 2026. Marsh’s Global Insurance Market Index also reported a 9% drop in US property insurance rates in the third quarter of 2025, highlighting growing competition and more available capacity.
Hodges pointed out three main reasons for this improved mood: a relatively calm US hurricane season so far, strong investment returns by insurers, and insurers wanting to take on more risks again. Still, companies are holding onto many strict guidelines from the hard market days.
Certain areas with less risk are seeing better coverage options and softer rates. But places prone to natural disasters like hurricanes and wildfires, such as coastal regions, California, and the Gulf Coast, remain a challenge. Insurers are carefully re-entering these high-risk zones, keeping tougher rules, higher deductibles, and expecting clients to share more of the risk.
Looking ahead to 2026, Hodges advises brokers and agents to actively shop around instead of accepting renewal offers as is. Clients who are willing to take on more risk, like choosing higher deductibles, might find better coverage matches.
He also highlighted the growing role of technology in reducing losses. Water damage, often caused by freezing or burst pipes, made up nearly a quarter of homeowners’ insurance claims in 2021. Many insurers now offer smart devices at attractive prices to help detect issues early. Placing sensors in places like bathrooms or near water heaters can catch problems before they cause big damage.
Even with the market improving, Hodges reminds everyone to stay cautious in high-risk regions. The insurance landscape is changing, but careful planning and smart choices can help clients get the coverage they need.