General Homeowner’s Insurance Statistics
The vast majority of U.S. homeowners carry homeowner’s insurance, although nearly half don’t understand what their policy covers.
- At least 85% of homeowners in the U.S. have homeowners insurance.
- The U.S. home insurance market is expected to reach $125 billion by 2024.
- 60% of homes in the U.S. are underinsured.
- Only 37% of renters carry renters insurance.
- 53.3% of homeowners believe that their homeowner’s insurance covers flood, which it does not.
- 47% of homeowners do not know what their insurance covers. [3, 5, 6, 8]
Home Insurance Statistics by Carrier
State Farm is the largest homeowner’s insurance company by market share, and they also write the highest direct premiums.
- As of 2020, State Farm wrote the highest direct premiums, followed by Allstate, USAA, Liberty Mutual, and Farmers, respectively.
- Homeowner’s insurance companies by market share (2019):
- State Farm: 17.97%
- Allstate: 8.38%
- USAA: 6.57%
- Liberty Mutual: 6.48%
- Farmers: 5.71%
- Travelers: 4.08%
- American Family: 3.90%
- Nationwide: 3%
- Chubb: 2.87%
- Erie Insurance: 1.68%
- When insuring a $250,000 home, Farmers is the most expensive ($1,980 per year), followed by:
- Chubb: $1,630
- State Farm: $1,503
- Allstate: $1,458
- American Family: $1,295
- Travelers: $1,269
- Auto-Owners: $1,165
- Nationwide: $1,042
- USAA: $992
- Erie Insurance: $897 [1, 2, 3]
Homeowner’s Insurance Statistics Related to Property Damage and Theft Claims
Wind (property damage) is the most common homeowner’s insurance claim, although fire is the most costly.
- On average, 5% of insured homeowners submit a property claim each year:
- 2.5% result from wind or hail;
- 2% result from water damage or freezing;
- 0.29% result from fire and lightning;
- 0.25% result from theft;
- 0.11% result from bodily injury lawsuits or property damage.
- In 2019, property damage losses made up 97.2% of all claims, with liability claims making up the remainder.
- Between 2015 and 2019, the average homeowner’s insurance claim payout was $13,582.
- The average payout for a fire and lightning claim is $80,000.
- Between 2009 and 2016, the most common homeowner’s insurance claims included:
- Wind: 24%
- Non-weather water: 20%
- Hail: 16%
- Weather-related water: 11%
- Theft: 6%
- Possessions most frequently lost in homeowner claims include:
- Jewelry (16%)
- Electronics (13%)
- Apparel (13%)
- Furniture (10%)
- House/home (10%)
- Tools (5%)
- Appliances (4%)
- Sporting goods (3%)
- Books/magazines (3%)
- Beds/mattresses (2%)
- Jewelry, electronics, and apparel are some of the most common items listed on theft-related home insurance claims.
- An average of 49% of homeowners have a home inventory of their personal possessions. [5] This number varies by region:
- South (48%)
- West (41%)
- Midwest (39%)
- Northeast (39%)
- Between 2015 and 2019, fire and lightning claims paid out the most, followed by water damage/freezing and wind and hail.
- Sinkhole coverage is typically excluded under a homeowner’s policy and requires policyholders to purchase separate coverage elsewhere. However, home insurance companies in Tennessee must offer sinkhole insurance, while Florida home policies automatically cover “catastrophic ground cover collapse.” [1, 7, 8]
Homeowner’s Insurance Statistics Related to Liability Claims
While liability claims make up a much smaller portion of the total compared to property damage, more than 25 million Americans experienced one during 2018 alone.
- In 2019, liability claims made up 2.8% of all claims.
- In 2018, 25 million Americans experienced an unintentional injury in the home that required aid from a medical professional. 57.1% were related to poisoning, while 27.2% were falls, and 2.9% were choking.
- Dog bites constitute one-third of home liability claims.
- Between 2003 and 2019, the average payout for a dog liability claim increased from $19,162 to $44,760, possibly due to the increased costs of medical care.
- Rates of unintentional home injuries have risen 150% since 1999. [1,4, 6, 8]
| Incurred Losses for Homeowner Insurance in the United States | |
| Year | Losses (Billions) |
| 2012 | 41.11 |
| 2013 | 35.49 |
| 2014 | 39.92 |
| 2015 | 41.24 |
| 2016 | 44.39 |
| 2017 | 56.48 |
| 2018 | 56.25 |
| 2019 | 54.08 |
| 2020 | 63.85 [4] |
Home Insurance Statistics Related to Premium
What you pay for homeowner’s insurance largely depends on where you live (zip code), as well as your credit score, loss history, attractive nuisances (e.g., trampoline), and deductibles.
- In 2018, the average price of a homeowner’s policy was $1,249 and $179 for a renter’s.
- As of 2018, Louisiana has the highest average home insurance premium ($1,987), and Idaho had the lowest ($772).
- 44% of homeowners comparison shop when their policy is up for renewal.
- Those with a fair credit score pay an average of 32% more on their homeowner’s insurance than those with excellent credit.
- Wood burning stoves increase home insurance premiums by 2%, and pools increase it by 1%, whereas smart security systems can decrease rates by 20%.
- Bundling homeowner’s insurance with other types (e.g., auto, umbrella, life, etc.) can result in a 10% or more discount.
- Among U.S. states, Mississippi has the highest average renter’s insurance premium ($244), which is perhaps why only 13% of renters in the state carry coverage.
- When purchasing home insurance, it will cost you an average of $35 per $100,000 in coverage, although this number can vary depending on your zip code, past losses, and deductibles, to name just a few factors.
- The countrywide average premium increased 3.3% between 2017 and 2018.
- In 2005, the average cost of an annual home insurance premium was $764, which increased to $1,249 per year by 2018. [1, 3, 5, 6, 7, 8]
| Average Premium by Policy Form | ||
| Policy Form | 2013 Average Premium | 2018 Average Premium |
| HO-1 | $1,149 | $1,633 |
| HO-2 | $1,110 | $1,131 |
| HO-3 | $1,095 | $1,249 |
| HO-5 | $1,061 | $1,396 |
| HO-8 | $937 | $1,003 |
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Sources
- Insurance Information Institute. Facts + Statistics: Homeowners and renters insurance. Accessed on 10/27/21.
- Bankrate. Homeowners insurance statistics and facts. Accessed on 10/27/21.
- ValuePenguin. Home Insurance Facts and Statistics: Coverage & Claims. Accessed on 10/27/21.
- Statista. Incurred losses for homeowner insurance in the United States from 2012 to 2020. Accessed on 10/28/21.
- PolicyGenius. Homeowners insurance statistics. Accessed on 10/28/21.
- Comfy Living. 28 Essential Home Insurance Facts & Stats for 2021. Accessed on 10/28/21.
- National Association of Insurance Commissioners. NAIC Releases Homeowners Insurance Report. Accessed on 10/28/21.
- Insurify. Homeowners Insurance Claims Statistics. Accessed on 10/28/21.