The Personal Lines insurance market in the US continues to face regional instability and underwriting challenges, creating a market in flux — neither fully hard nor truly soft. Carriers, brokers and insureds are all navigating changing appetites, capacity restrictions and risk exposures that vary dramatically by region.

“The personal lines space is constantly changing. In recent years, there has been additional need to access the E&S markets to gain proper coverage capacity,” says RPS Personal Lines Practice Leader Adrianna Rivera. “At RPS we constantly monitor industry trends and needs to provide the expertise and coverage solutions our clients and their insureds need.”

"There's still plenty of rate shopping happening, especially from clients facing policy restrictions on wind or roof age," adds Sherri Hicks, RPS Personal Lines underwriting manager. "It feels like a soft market in some areas, but the limitations on placement, particularly concerning older roofs and storm exposure, make it a hard market at the same time. The market is somewhere in the middle."

Personal Lines in the Southeast

Clients in the Southeast continue to seek better pricing and broader coverage terms, as standard markets impose roof age limitations of 10 or 15 years for writing Homeowners insurance. This has resulted in having alternative markets step in to provide coverage.

Despite this, the Homeowners insurance market in the Southeast has not yet reached a crisis point. Insureds in Georgia, the Carolinas and Alabama continue to find coverage options, although often outside the standard admitted market.

Flood coverage, too, remains relatively stable in the Southeast, other than in specific high-risk zones like Florida.

"The only place we're really hitting a wall for Flood coverage is in Florida, within 500 feet of the coast and especially for properties needing more than $1 million in coverage," Hicks notes. "Other areas, however, such as North Carolina and South Carolina, are seeing an uptick in private flood placements."

Personal Lines in the Midwest

Insureds in the Midwest with homes that have roofs older than 10 years are also experiencing challenges, with standard markets no longer willing to write these dwellings, according to Amy Sanchez, RPS area senior vice president for Personal Lines.

In addition, insureds with higher value homes in an unprotected class are unable to get terms, or carriers are capping the value they will insure up to.

"Insureds with prior claims histories are having a hard time when purchasing new homes," explains Sanchez.

The Midwest has experienced many catastrophic hail losses over the last few years, with several standard carriers pulling out of the market.

Personal Lines on the West Coast

While the Southeast contends with wind and flood issues, the West Coast is facing a wildfire crisis that is reshaping the personal lines landscape.

Amber Sellers, RPS Senior underwriter/broker for Personal Lines, reports a growing inability to write homes in even semi-elevated wildfire score areas, regardless of mitigation efforts. Capacity is drying up, particularly for homes with wood shake roofs, which are viewed as too high-risk by most carriers.

"The biggest issue is the inability to write in wildfire-prone areas," Sellers explains. "Even homes with newer roofs or fire-resistant construction can be declined purely based on their wildfire score."

Beyond Property insurance, Umbrella and stand-alone Auto Liability policies are becoming harder to place, especially when a client has any motor vehicle record (MVR) activity. Carriers that continue to write Umbrella policies are increasing rates and tightening underwriting.

There's also growing scrutiny around solar panels and energy storage batteries, which are raising concerns for insurers due to potential fire hazards and complex claims handling. Prior loss history is under the microscope more than ever, with carriers rejecting risks that previously would have been considered acceptable.

The High-Net-Worth Segment

The high-net-worth market has remained relatively stable so far.

According to Hicks, "We haven't seen a lot of disruption in the high-net-worth space. The exceptions are coastal properties, homes with secondary or seasonal occupancy or clients with multiple luxury vehicles and complex risk profiles. In those cases, custom solutions are still available but require proactive placement strategies and carrier relationships."

Hicks also highlighted the challenges in the Umbrella insurance market for high-net-worth individuals across the country.

Down the Road

Whether it's wind and flood in the Southeast, stricter underwriting guidelines in the Midwest or wildfires in the West, one theme is clear: Flexibility and specialization are critical.

Hicks sums it up best: "It's a really odd year. Nothing is straightforward. The market feels like it's shifting under our feet and in transition. We're having to get creative, especially when working around exclusions and tightening guidelines."

Carriers are watching loss trends closely, re-underwriting books and making rapid adjustments — often leaving brokers scrambling to keep up. For agents and clients alike, the best approach is to stay ahead of renewal dates, work with specialty markets when needed and prepare for more scrutiny on previously "easy" placements.

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