Homeowners Insurers Reopen and Pay to Grow

US homeowners insurers are reopening to new business and paying to win customers after a year of low catastrophe losses and cheaper reinsurance. Insurance lead marketplace EverQuote (EVER) and personal-lines carrier The Progressive Corporation (PGR) described the shift from opposite sides of the transaction on their third-quarter 2026 earnings calls on November 2 and 3, 2026: EverQuote's home insurance revenue grew 70%[1], and Progressive's homeowners new business applications rose 22%[2].

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Why homeowners insurers stopped rationing new policies

A homeowners insurer collects premiums, pays claims when homes are damaged by fire or storms, and passes part of its hurricane-scale catastrophe risk to reinsurers. Reinsurance is one of its largest costs. After several years of heavy catastrophe losses and expensive reinsurance, carriers wrote new business selectively. In the third quarter of 2025, Progressive prioritized lower-risk properties such as new construction and homes with newer roofs, accepted new homeowners business only when bundled with a Progressive auto policy where permitted, and had raised personal property rates 8% year to date[3].

In 2026 those reasons for restricting are fading. Progressive's CEO called this a very low catastrophe year[2]. Hippo (HIPO) said the property market remains soft, with plentiful reinsurance capacity allowing reduced rates and softer terms[4]. With repaired books now unusually profitable, reopening states and loosening underwriting became the most direct way to grow.

Carriers find new customers through agents and through lead marketplaces such as EverQuote, where they buy referrals of consumers who are shopping for coverage. EverQuote's CFO described the order of events: carriers first fixed auto pricing and have now turned to home[1]. Because carriers face the same reinsurance market and the same catastrophe year, the shift is not limited to one company.

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New business, pricing and lead spend move together

Progressive shows the change most directly. Its homeowners new business applications rose 22% year over year in the third quarter of 2026, which management attributed to broader availability and acceptability[2]. In the same quarter, personal property rates fell by less than 1% in aggregate[5], compared with cumulative increases a year earlier[3]. The CEO added that a combined ratio in the 70s probably is not long-term strategic if Progressive wants to grow[2]. The combined ratio is claims plus expenses as a share of premium, and a reading below 100 means an underwriting profit, so the remark signals a willingness to give back some margin for growth.

The companies selling customers saw a jump at the same time. EverQuote's home insurance vertical grew 70% in the third quarter to $27.7 million, after growth of around 30% in the first half[1]. Its CFO told analysts not to put 70% into their models because the vertical is still small[1]. On its October 28 call, MediaAlpha (MAX) reported record home and renters revenue of $66 million, up 116% year over year, and its CEO attributed the growth to returning homeowners insurance capacity and insurers' appetite to grow[6].

Carriers and lead marketplaces sit on opposite ends of the same transaction, and their figures for the same quarter point the same way. Insurers have moved from controlling new business to paying for it. These numbers measure spending and volume, though; the profit consequences have not yet shown up.

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Growth now depends on buying customers, and price gives way

When carriers restricted underwriting, capacity was scarce and customers waited. Now customers are the scarce input, so acquisition budgets flow to lead marketplaces and agents. Carriers that can sell auto and home together have an advantage; Progressive's CEO called bundles one of the company's largest opportunities over the next couple of years[2]. The cost shows up in price: Progressive's property rates have turned from increases to a small decline[5], and the more new capacity enters, the harder it gets for homeowners specialists to hold new-business pricing.

This view rests on a low-catastrophe year and cheap reinsurance. A normal catastrophe year or a hardening reinsurance market could make carriers tighten again. Florida homeowners specialist Slide Insurance (SLDE) said it sees nothing outsized or problematic in competition[7]. Signals to watch are whether EverQuote and MediaAlpha keep growing their home insurance revenue, and how Progressive's property rates and homeowners combined ratio move.

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Companies exposed to the homeowners reopening

• Heritage Insurance (HRTG): A Florida-focused homeowners carrier whose June reinsurance program saves about $63 million a year and which has reopened nearly all territories to new business; it also said more than 20 new companies entered Florida over the past two years and expects some to start writing voluntary new business in 2027[8], so the same reopening could push down its new-business pricing.
• Universal Insurance Holdings (UVE): Also centered on Florida homeowners insurance, it cut its net loss ratio 5.6 points through a lower ceded premium ratio, while direct written premium outside Florida grew 18.5% and Florida fell 3.3%[9]; management has not reported Florida price competition, so whether new-business price pressure reaches it remains unverified.

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Sources

[1] Drillr · EverQuote (EVER) · 2026-11-02 · Q3 2026 earnings call

First, the carriers focused on getting the right pricing in auto. Now they've switched into home. And we saw that coming.

[2] Drillr · The Progressive Corporation (PGR) · 2026-11-03 · Q3 2026 earnings call

[3] Drillr · The Progressive Corporation (PGR) · 2025-11-03 · Q3 2025 Form 10-Q

[4] Drillr · Hippo (HIPO) · 2026-10-29 · Q3 2026 earnings call

[5] Drillr · The Progressive Corporation (PGR) · 2026-11-02 · Q3 2026 Form 10-Q

[6] Drillr · MediaAlpha (MAX) · 2026-10-28 · Q3 2026 earnings call

[7] Drillr · Slide Insurance (SLDE) · 2026-10-28 · Q3 2026 earnings call

[8] Drillr · Heritage Insurance (HRTG) · 2026-10-29 · Q3 2026 earnings call

[9] Drillr · Universal Insurance Holdings (UVE) · 2026-10-23 · Q3 2026 earnings call

This article highlights industry changes and companies that may be overlooked. It is not a stock recommendation.