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Hail and admitted pullbacks lift US E&S homeowners premiums inland
Direct excess and surplus homeowners premiums rose 29.5% in 2025 to $4.14 billion, with roofing claims tied to catastrophe hail reaching 33% versus 19% in 2021.
The excess and surplus lines, or E&S, homeowners market is expanding beyond traditional coastal states as hail and other convective storms coincide with admitted carrier pullbacks, according to Insurance Business citing an S&P Global Market Intelligence report.
S&P Global Market Intelligence data show direct E&S homeowners premiums rose 29.5% in 2025 to $4.14 billion, marking the third straight year of 20% plus growth for the segment. By comparison, the broader E&S market recorded its first single-digit expansion rate since 2018.
Colorado, Texas, and Minnesota are among the fastest-growing inland markets. Colorado’s 2025 E&S homeowners premiums reached $91.9 million, up 63.7%, and the report projects volume will surpass $100 million in 2026; Texas premiums grew 63.4% to $453.6 million; and Minnesota’s premiums more than tripled from $7 million to $22.8 million.
Severe hail is a key driver, with S&P Global Market Intelligence citing Verisk data that catastrophe hail was used to designate 33% of all roofing claims in 2025, up from 19% in 2021. The average roof replacement cost reached $17,631 in 2025, and S&P Global Market Intelligence also notes the active-season insured-loss potential can rival that of a major hurricane. California, Florida, and Texas still account for about 64% of total US E&S homeowners direct premiums, and S&P Global Market Intelligence said Chubb was the largest E&S homeowners insurer nationally in 2025 with $416.5 million in premiums.