Nearly half of American homeowners — 47% — experienced insurance premium increases in 2025, according to a J.D. Power study, with the increases driving changes in how homeowners respond to property damage events and interact with restoration contractors.
The premium increases reflect a broader trend of rising insurance costs driven by increasing disaster frequency, inflation in construction costs, and the withdrawal of some carriers from high-risk markets.
For restoration contractors, the widespread experience of premium increases among homeowners has several implications. Homeowners who are already paying more for insurance may be more reluctant to file claims for damage that falls near or below their deductible, potentially delaying necessary remediation work.
At the same time, homeowners who have experienced premium increases may be more attentive to maintaining their properties and addressing damage promptly to avoid the risk of coverage disputes or policy cancellation.
The J.D. Power study findings underscore the importance of consumer education about the risks of delayed remediation and the long-term costs of inadequately addressed property damage.
