Newrez LLC released results from an internal review of about 1.2 million mortgages it services, showing homeowners insurance bills climbed sharply from 2021 through 2025. The company said the average annual premium rose 64% over that span, and the rate of increase slowed in 2025 compared with prior years.
Newrez, which is owned by Rithm Capital Corp. (NYSE:RITM), said the analysis excluded lender‑placed coverage and focused on premiums paid from escrow accounts at each year‑end.
Homeowners insurance costs surge
According to Newrez’s portfolio data, the average annual homeowners insurance premium increased to $2,625 by year‑end 2025 from $1,597 at year‑end 2021, a 64% jump. Premium hikes were in the double digits in 2022, 2023 and 2024 before easing to a 10% gain in 2025, the slowest rate of increase since 2021.
Shane Ross, Newrez’s head of servicing, tied the run‑up to weather‑related losses and higher rebuilding expenses, saying homeowners insurance has become a much larger component of housing costs as more frequent severe weather and higher construction costs put pressure on insurers.
Ross …
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