The home insurance market could have a better year in 2025, according to Matic’s year-end trends and predictions report.

Heading into the new year, rate increases have begun to slow down. At the beginning of 2024, homeowners saw an average rate surge of 17.4% for new policies as insurers coped with inflation, severe weather and reinsurance costs. But the average increase for new policies dropped from 10.7% in the first half of the year to 6.6% in the second half.

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