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Facts + Statistics: Facts + Statistics: Homeowners and Renters

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Facts + Statistics: Facts + Statistics: Homeowners and Renters Facts + Statistics: Homeowners and renters insurance Homeowners IN THIS FACTS + STATISTICS Homeowners insurance expenditures Home inventories Sinkhole claims Causes of homeowners insurance losses Homeowners Insurance Losses, 2015-2019 (1) Homeowners Insurance Losses By Cause, 2015- 2019 (1) Average Homeowners Losses, 2015-2019 (1) Homeowners Losses Ranked By Claims Severity (Average Claim), 2015-2019 (1) Homeowners Losses Ranked By Claims Frequency, 2015-2019 (1) Consumer prices Consumer Price Indices For Insurance And Related Items And Annual Rates Of Change, 2011-2020 (Cont'd) Expenditures for homeowners and renters insurance Average Premiums For Homeowners And Renters Insurance, 2009-2018 Average Premiums For Homeowners And Renters Insurance By State, 2018 (1) Average Homeowners Insurance Premiums Ranked By State, 2018 (1) Top 10 Writers Of Homeowners Insurance By Direct Premiums Written, 2020 Homeowners Insurance Industry Underwriting Expenses, 2020 (1) Home injuries Unintentional Home Deaths And Injuries, 2019 Principal Types Of Home Unintentional Injury Deaths, 2019 High-risk markets Renters and homeowners demographics Percent Of Occupied Housing Units That Are Owner Occupied, 2019 Percent Of Mortgaged Owners Occupied Units Spending 30 Percent Or More Of Their Income On Homeownership Costs (1) Percent Of Renter Occupied Units Spending 30 Percent Or More Of Their Income On Rent And Utilities, 2019 SHARE THIS DOWNLOAD TO PDF Homeowners insurance expenditures The average homeowners insurance premium rose by 3.1 percent in 2018, following a 1.6 percent increase in 2017, according to a January 2021 study by the National Association of Insurance Commissioners, the latest data available. The average renters insurance premium fell 0.6 percent in 2018 marking the fourth consecutive annual decline. Renters insurance premiums fell 2.7 percent in 2017. (See tables in Expenditures for homeowners and renters insurance section). Home inventories On average, over nine survey years ending in 2020, 49 percent of homeowners said they prepared an inventory of their possessions to help document losses for their insurers, according to polls conducted for the Insurance Information Institute (Triple-I). Forty-three percent of homeowners said they had an inventory in the 2020 Triple-I Consumer Poll. The survey showed that homeowners in the South and West were more likely to have a home inventory (48 percent and 41 percent), followed by homeowners in the Northeast and Midwest (both regions at 39 percent). Sinkhole claims In March 2013 an entire house fell into a huge sinkhole in a suburb of Tampa, Florida, garnering national attention. Although such large, sudden and destructive sinkholes are relatively rare, thousands of small sinkholes appear in the U.S. each year. The most damage from sinkholes occurs in Florida, Texas, Alabama, Missouri, Kentucky, Tennessee and Pennsylvania, according to the U.S. Geological Survey. Most homeowners insurance policies exclude coverage for sinkhole damage. However, homeowners insurance companies in Florida and Tennessee are required to offer the coverage. In Florida catastrophic ground cover collapse is mandatory; comprehensive sinkhole coverage is optional. (Note: For information on the Florida law see http://www.insuringflorida.org/articles/sinkholes.html. For statistics on Florida sinkholes see http://www.floir.com/sections/pandc/sinkholepage.aspx). Causes of homeowners insurance losses In 2019, 5.1 percent of insured homes had a claim, according to ISO. Property damage, including theft, accounted for 97.2 percent of homeowners insurance claims in 2019 (latest data available). Changes in the percentage of each type of homeowners loss from one year to another are partially influenced by large fluctuations in the number and severity of weather-related events such as hurricanes and winter storms. There are two ways of looking at losses: by the average number of claims filed per 100 policies (frequency) and by the average amount paid for each claim (severity). The loss category “water damage and freezing” includes damage caused by mold, if covered. Every state except Alaska, Arkansas, New York, North Carolina and Virginia has adopted an ISO mold limitation for homeowners insurance coverage, which allows insurers to exclude the coverage unless the condition results from a covered peril. In 2019, 5.1 Homeowners Insurance Losses, 2015- percent of 2019 (1) insured homes experienced a claim, compared with 6.2 percent in 2018. Total homeowner losses Total homeowners losses Year Claim Claim Year Claim Claim Homeowners frequency (2) severity (3) frequency (2) severity (3) insurance losses, net of 2015 5.75 $11,440 2018 6.21 $14,826 reinsurance, 2016 5.03 11,973 2019 5.13 13,653 rose to $63.8 2017 6.24 15,501 Average 5.67 $13,582 billion in 2020 from $54.2 (4) billion in 2019, (1) For homeowners multiple peril policies (HO-2, HO-3, HO-5 and HE-7 for North Carolina). Excludes according to tenants and condominium policies. Excludes Alaska, Texas and Puerto Rico. (2) Claims per 100 house-years (policies). One house-year represents policy coverage on a dwelling for S&P Global 12 months. Market (3) Average amount paid per claim; based on accident year incurred losses, excluding loss adjustment Intelligence. expenses, i.e., indemnity costs per accident year incurred claims. (4) Weighted average, 2015-2019. Source: ISO®, a Verisk Analytics® business. View Archived Tables Homeowners Insurance Losses By Cause, 2015- 2019 (1) (Percent of losses incurred) Cause of loss 2015 2016 2017 2018 2019 Property damage (2) 96.1% 96.2% 97.6% 97.7% 97.2% Wind and hail 22.5 33.4 41.0 36.3 34.3 Water daCmauagse aonfd l ofrsesezing 204125.4 202196.0 201187.7 202138.7 202199.4 Fire and lightning 23.7 26.2 32.2 30.2 25.1 Theft 1.9 1.9 1.1 1.0 1.0 All other property damage (3) 5.6 5.7 4.5 6.5 7.4 Liability (4) 3.9% 3.8% 2.4% 2.3% 2.8% Bodily injury and property damage 3.7 3.5 2.2 2.1 2.4 Medical payments and other 0.2 0.2 0.2 0.2 0.4 Credit card and other (5) (6) (6) (6) (6) (6) Total 100.0% 100.0% 100.0% 100.0% 100.0% (1) For homeowners multiple peril policies (HO-2, HO-3, HO-5 and HE-7 for North Carolina). Excludes tenants and condominium owners policies. Excludes Alaska, Texas and Puerto Rico. (2) First party, i.e., covers damage to policyholder's own property. (3) Includes vandalism and malicious mischief. (4) Payments to others for which policyholder is responsible. (5) Includes coverage for unauthorized use of various cards, forgery, counterfeit money and losses not otherwise classified. (6) Less than 0.1 percent. Source: ISO®, a Verisk Analytics® business. View Archived Tables In the five- Average Homeowners Losses, 2015-2019 year period, (1) 2015-2019, 5.7 percent (Weighted average, 2015-2019) of insured homes had a claim. Wind Cause of loss Claim frequency (2) Claim severity (3) and hail Property damage (4) 5.57 $13,424 accounted for the Fire and lightning 0.27 78,838 largest share Water damage and freezing 1.90 11,098 of claims, with 2.5 Wind and hail 2.45 10,801 percent of Theft 0.23 4,328 insured All other (5) 0.71 6,406 homes having such Liability (6) 0.10 $22,363 a loss, Bodily injury and property damage 0.07 29,752 followed by water Medical payments and other 0.03 5,802 damage and Credit card and other (7) (8) $672 (9) freezing with Average (property damage 5.67 $13,582 1.9 percent of homes and liability), 2015-2019 having a (1) For homeowners multiple peril policies (HO-2, HO-3, HO-5 and HE-7 for North Carolina). Excludes tenants loss. and condominium owners policies. Excludes Alaska, Texas and Puerto Rico. (2) Claims per 100 house years (policies). (3) Accident year incurred losses, excluding loss adjustment expenses, i.e., indemnity costs per accident year incurred claims. (4) First party, i.e., covers damage to policyholder's own property. (5) Includes vandalism and malicious mischief. (6) Payments to others for which policyholder is responsible. (7) Includes coverage for unauthorized use of various cards, forgery, counterfeit money and losses not otherwise classified. (8) Less than 0.01. (9) Claim severity for credit card and other is significantly lower than was shown in previous years due to a change in the companies surveyed to produce the data. The new selection of companies use different exclusions which have been applied throughout the five years used in this chart. Source: ISO®, a Verisk Analytics® business. View Archived Tables Homeowners Insurance Claims Frequency* About one in 20 insured homes has a claim each year. About one in 40 insured homes has a property damage claim related to wind or hail each year. About one in 50 insured homes has a property damage claim caused by water damage or freezing each year. About one in 365 insured homes has a property damage claim related to fire and lightning. About one in 425 insured homes has a property damage claim due to theft each year. About one in 1,440 homeowners policies has a liability claim related to the cost of lawsuits for bodily injury or property damage that the policyholder or family members cause to others. *Insurance Information Institute calculations, based on ISO®, a Verisk Analytics® business, data for homeowners insurance claims from 2015-2019 (see table above). Homeowners Losses Ranked By Claims Severity (Average Claim), 2015-2019 (1) (Weighted average, 2015-2019) (1) For homeowners multiple peril policies (HO-2, HO-3, HO-5 and HE-7 for North Carolina). Excludes tenants and condominium owners policies. Accident year incurred losses, excluding loss adjustment expenses, i.e., indemnity costs per accident year incurred claims.
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