Households with complex property portfolios are entering 2026 in a market where insurance availability and pricing remain difficult. Carriers are selective, capacity is limited in many regions, and rate pressure persists, even if the dynamics are more nuanced than simple across-the-board increases.


Insurers are tightening guidelines based on local CAT exposure and loss experience, with factors like roof age, materials, and proximity to brush or coastlines now driving decisions.

For many families, the priority in 2026 is maintaining insurability and making more deliberate decisions about coverage as conditions remain tight.


Overall Market Conditions: Still Hard, but Uneven
Carrier capacity remains tight going into 2026, creating a tougher environment for homeowners. Fewer companies are willing to underwrite large homes, coastal exposures, or high-wildfire-risk locations, and available options often come with higher deductibles, tighter terms, or new exclusions.


True ‘low risk’ profiles are becoming the exception. For most households, continued rate increases and fewer alternatives are the baseline expectation.


Many have turned to state-backed programs, like the California FAIR Plan, in search of lower premiums. As those programs absorb heavy losses, they’re now implementing significant rate hikes of their own. The idea of finding a carrier untouched by this pressure simply isn’t realistic.


Regional Instability and CAT Exposure
Catastrophe exposure remains one of the biggest forces shaping personal insurance in 2026. Across the country, carriers are recalibrating their appetites based on the frequency and severity of regional risks:

  • Southeast: Flood challenges continue to intensify, especially in coastal Florida, where homes within a few hundred feet of the shoreline or those needing seven-figure flood limits face the strictest terms.
  • Midwest: Hail remains a costly and consistent threat, with carriers heavily focused on roof age and condition.
  • West: Wildfire activity in parts of California, Colorado, and neighboring states has become more frequent and severe. In high-risk zones, combustible materials such as wood-shake roofs or wood siding are often automatically declined.


These exposures create broader capacity constraints. On the surplus lines side, some quotes are valid for only 14 days, applying additional pressure on homeowners to make hasty decisions on coverage selection as it is becoming a “first come, first serve” marketplace.  Navigating this environment requires a broker with access to multiple markets and the ability to time submissions strategically.


Capacity and Timing Pressures
With capacity tight, timing has become a strategic part of placement. Carriers may send nonrenewal or rate-change notices 60-90 days ahead of expiration but going to market too early can be as limiting as waiting until the final week when underwriters are inundated. For families with multiple or high-risk properties, renewal season increasingly resembles a chess match:

  • Know when quotes become available and how long they’re valid.
  • Ensure your broker is targeting the right markets at the right time.
  • Be ready to move quickly once acceptable terms surface.

Line-by-Line Expectations for 2026
Looking ahead, primary shifts expected across the major personal insurance lines include:

  • Property Insurance – Expect property rates to rise 15%-20% in many areas, with higher spikes in catastrophe-prone regions or where there have been losses. Carriers are increasingly factoring in reinsurance costs on large homes and portfolios, and older roofs or higher-hazard locations may face surcharges, sublimits, or fewer options.
  • Auto Insurance – Auto rates are generally trending 10%-15% higher. Just as important, your auto behavior now affects your entire personal portfolio. Carriers often review your overall loss ratio across property and auto. Multiple violations or small auto claims can tip the scales toward nonrenewal, even if you’ve never had a property loss.
  • Umbrella and Personal Liability – Umbrella and excess liability are experiencing 14%-15% or higher rate increases, driven by nuclear verdicts and a growing litigation funding industry. Historically, eight-figure awards were more likely to hit corporations. Increasingly, individuals with substantial net worth are becoming targets.


Best Practices to Protect Your Insurability and Wealth
In this environment, the most effective strategy is to protect your insurability and align your coverage with the reality of your risk. A few priorities for 2026:


1. Understand the FAIR Plan (and Its Limits) – If you’re in California, recognize that the FAIR Plan is not a traditional homeowner’s policy. It’s a dwelling fire policy, generally capped at $3 million in total insured value across dwelling, other structures, contents, and loss of use, and it focuses on named perils such as fire, smoke, lightning, and internal explosion. It does not automatically include ordinance or law, mold, water damage, or many of the additional coverages people assume they have. If you’re relying on the FAIR Plan, make sure you understand the gaps and how they’re being addressed.


2. Protect Your Insurability by Re-Thinking Deductibles – The industry is moving away from low deductibles on small, preventable losses. In many cases, shifting to a $5,000 or even $10,000 deductible can be a smart way to:

  • Avoid turning minor incidents into claims that hurt your record.
  • Reallocate premium dollars more efficiently.
  • Demonstrate to carriers that you’re willing to share in the risk.


3. Stay Educated and Ask Better Questions – Regulations, carrier appetites, and coverage forms are changing quickly. Rather than relying on social media or hearsay, lean on trusted professionals and ask specific questions:

  • What exactly is excluded under this policy?
  • Are there limitations on fire, water, or mold damage?
  • How would this policy respond if I had a total loss?
  • What steps can I take at this property to improve my risk profile?


4. Work With the Right Broker and Manage Timing – For families with complex profiles, the broker you choose can have as much impact as the carrier. Look for someone who:

  • Has access to multiple admitted and non-admitted markets.
  • Understands multi-state and catastrophe-exposed portfolios.
  • Communicates clearly about timing, deadlines, and what is realistic.

5. Invest in Risk Mitigation and Maintenance – Take seriously the factors you can control:

  • Update older roofs and keep documentation of inspections and repairs.
  • Use noncombustible materials and defensible space in fire-prone areas.
  • Install automatic water-shutoff devices and maintain plumbing and HVAC.
  • Upgrade windows and shutters in hurricane-prone regions.

 

Intentional Risk Management Is Key
The challenges shaping 2026 won’t ease overnight, but they do create an opportunity for more intentional risk management. By staying educated, managing timing carefully, and strengthening the factors within your control, you can navigate a tighter market with greater confidence. Thoughtful planning—supported by the right broker—remains the most reliable way to protect what you’ve built.