Looking Ahead

We hope you’ve had a great start to the new year! As we settle back into routines after the holidays, we wanted to take a moment to say thank you for being part of our community and to share a few updates as we move into the months ahead.

What’s Changed

In 2025, homeowners saw up to a 10% increase in insurance premiums. While these increases are projected to slow in 2026, some may still see increases of 5-8%.

Rebuild Costs

Rebuild costs are up 35-40% over the last 5 years, and prices of materials used for residential construction have seen spikes of approximately 15% in 2025 alone. New or increased tariffs on imported materials like steel, aluminum, and lumber were a major factor in this, causing volatility and pushing costs higher. As these prices increase, so does the cost to repair of replace homes damaged by covered losses.

Labor Shortages

The construction industry is facing a skilled labor shortage, which has resulted in added problems related to wages, supply chain challenges, and other construction issues.

Natural Disasters

With the increase in both the frequency and severity of events such as wildfires, hurricanes, and floods, insurers are facing significantly higher claims costs. As a result, premiums have risen across the board. In some higher-risk states, including Florida and California, several carriers have reduced their presence or exited the market entirely, leaving fewer options and driving prices higher among the remaining insurers.

What We Can Do

While many of these factors are outside of anyone’s control, proactive planning can help minimize their impact. The Cayero Group shops coverage across multiple carriers to avoid reliance on a single insurer’s pricing, reviews policies to ensure coverage reflects current rebuild costs, and identifies opportunities to manage premiums like bundling home and auto policies. By reviewing insurance early, especially for older or higher value homes, we can flag underwriting concerns in advance, help clients secure available discounts, and prevent last-minute issues that could affect affordability or closing timelines.