Loss statistics for householders insurance

The reason people buy home insurance is to protect themselves from losing their home or personal property. In other words, so that if something goes wrong they can make a claim and be made in full.

However, the frequency and severity of claims in home insurance have a major impact on home insurance and the larger property and casualty market. These effects are reaching homeowners across the country, mainly in the form of higher home insurance rates.

Below you will find the most important and interesting statistics and facts on the subject of household insurance.

Readiness statistics and trends

By taking action before a bad weather event, homeowners can save both premium and damage costs. Many insurers offer discounts to homeowners who take preventive measures.

  • In recent years, homeowners have taken bigger steps to protect their homes from floods, hurricanes, and other natural disasters. (III)
  • Almost half- 43%– All homeowners have made an inventory of their personal belongings that they can fall back on in the event of damage. (III)
  • The homeowners most likely to have inventory are in the south (48%) and the west (41%), closely followed by homeowners in the Midwest (39%) and northeast (39%). (III)

Prevalence statistics

The cost of property damage is expensive and increasing. This has created a lot of need for change in the insurance market overall with rising premiums and non-renewals.

  • Payment of insurance companies Billions every year to cover insurance claims. (III)
  • About every year 5% of insured homeowners report property damage on average. (Insurance Information Institute, III)
  • Every year on average about 2.5% of insured homeowners report property damage from wind or hail. (III)
  • On average about 2% of the insured homeowners report property damage due to water damage or frost. (III)
  • above 0.29% of insured homeowners report property damage from fire and lightning strike on average every year. (III)
  • above 0.25% of insured homeowners report property damage from theft on average every year. (III)
  • On average about 0.11% of insured homeowners report property damage due to personal injury or property damage caused by the policyholder or his family. (III)
  • 5.7% of homeowners with insurance reported a claim in 2018. (III)
  • More than 98% of the claims in 2018 related to property damage (including theft), not liability claims. (III)
  • In the last 20th Years, entitlement frequency has decreased. However, the severity of the claim (average amount paid per claim) has increased significantly over the same period. (Insurance Research Council)

Insurance statistics by type of damage

The payout and the consequences of insurance claims vary greatly depending on the type of claim. Understanding how different types of claims can affect your insurer can help you understand how those claims affect your bottom line.

  • 25 million Americans needed a doctor's help for an accidental injury sustained indoors in 2018. (III)
  • Wind and hail are the most common cases of damage in household insurance 34% of all claims. (Bank rate)
  • Fire and lightning strike are the second most common damage caused by household insurance 32% of all claims. (Bank rate)
  • Hail and wind are the most common cases of damage to household insurance, while fire and lightning are the most expensive damage. (III)
  • There is no property damage 98.1% all damage from household insurance. (Insurance agency, ISO)
  • above 1 of 50 Households have a household contents insurance claim each year in connection with water and frost damage. (III)
  • In the last few decades there has been a long-term one decreasing Theft crime trend. (III)
  • In 2019, property damage from fire and lightning decreased 37% compared to 2018. (III)
  • As a percentage of the total insured damage, here are the top damage from household insurance:
    • Wind and hail 34%
    • Fire and lightning 32.7%
    • Water damage and freezing 23.8%
    • Other property damage (vandalism, etc.) 6.2%
    • Liability for personal injury and property damage to others 1.8%
    • Theft 1%
    • Medical payments 0.1%
    • Credit card or other > 0.1% (ISO)

Loss statistics for household insurance: Sinkholes

  • States with the the greatest harm of sinkholes are Florida, Texas, Alabama, Missouri, Kentucky, Tennessee, and Pennsylvania. (United States Geological Survey)
  • In Tennessee, home insurance companies are obliged to offer sinkhole insurance. Cover is generally excluded at other locations. and homeowners must take out a separate policy. (III)
  • In Florida, home insurance companies are required to cover "catastrophic floor cover collapse," although sinkhole coverage is optional. (III)
  • In Tampa, Florida, an entire house fell into a large sinkhole in March 2013. Although large sinkholes are rare, thousands of small sinkholes occur in the United States annually. (III)

Damage statistics for household insurance: Injury

  • The most common location for personal injury that requires medical attention is at homeland. In fact, more injuries occur at home than in public places, at work, and in car accidents combined. (National Security Council, NSC)
  • Since 1999, accidental domestic injury rates have increased 150%, especially due to an increase in poisoning and falls. Medication overdoses and falls in older adults are responsible for most of this increase. (NSC)
  • In 2018, the number of accidental fatal domestic injuries fell by 1.4% compared to 2017. (NSC)
  • Accidental home deaths have remained constant for more than 100 years. In 1912 there was 28 accidental deaths per 100,000 population. In 2018 there was 27.3 accidental deaths per 100,000 population. (NSC)

Loss statistics for household insurance: fire and lightning

  • above $ 826 million was paid out in 2016 for insurance claims related to lightning damage. (Statista)
  • 76,860 In 2019, insurance claims related to lightning damage were made. (Statista)
  • The average payout for fire and lightning damage is $ 80,000. (III)
  • Although fire is one of the rarest occurrences to result in damage to a home insurance policy, fire damage is responsible for 25% all damage costs. (WertPenguin)

Loss statistics for household insurance: wind and hail

  • 34.4% the damage to home ownership results from wind and hail damage. (ISO)
  • Wind and hail damage can be related to tropical storms and hurricanes. (Policy genius)
  • CA, 1 in 40 Homes have a home contents insurance claim for wind and hail damage each year. (III)

Damage statistics for household insurance: theft

  • above 1% the loss of home ownership is the result of theft. (Enservio)
  • Jewellery is the most common item listed in home insurance for theft. (Enservio)
  • electronics and clothing are also common items listed in a home insurance claim due to theft. (Enservio)

Damage statistics for household insurance: dog bites

  • In 2003, was the average cost of a dog bite claim $ 19,162. (Policy genius)
  • In 2019 was the average cost of a dog bite claim $ 44,760. (Policy genius)
  • Have costs for dog bite claims risen Steadily year after year, possibly due to the increased cost of medical care. (Policy genius)
  • Dog breeds that are considered high risk are excluded from the cover provided by certain household insurance. Dogs that are considered high risk include Akitas, Rottweilers, German Shepherds, and Pitbulls. (Policy genius)

Data visualization: fault-related losses in homeowner insurance (in the infogram)

Home insurance costs and trends

Insurance costs are rising, especially in the USA. This is due to a number of factors. While the costs associated with insurance claims fluctuate every year, particularly depending on the occurrence of severe weather events, the trend is increasing overall.

Home Insurance Trends by Location

Where you live has a lot to do with the dangers you face. Some regions see significantly higher premiums for home insurance due to the increased risk. And in many areas the number of claims has been increasing for several years.

  • Parts of the country that have frequent violent storms and tornadoes also tend to have some of the most expensive home insurance premiums. Often referred to as "Tornado Alley," this area is located in eastern Colorado, north and west Texas, Oklahoma, Kansas, Nebraska, and South Dakota. The average home insurance premium is $ 1,312 yearly. (Bank rate)
  • Countries with few storms tend to have lower home contents insurance premiums. However, other factors can affect the cost. (Bank rate)
  • Crime rates can play a big role in assessing the cost of home insurance premiums. Crime rates are calculated by POST CODE Code. (Bank rate)
  • The state with the lowest annual home insurance premiums is Hawaii at $ 376 a year. This is because Hawaii law requires homeowners to purchase separate insurance to cover hurricanes that occur at a lower rate than the Gulf States. (Bank rate)
  • Hurricane risk can increase costs vary clearly by location. For example, homes on the coast of South Carolina have much higher premiums than homes just a few miles inland. (Bank rate)
  • California suffers more home insurance losses than any other state, in large part due to recent forest fire trends. $ 12 billion in 2017 and $ 13 billion in 2018. (Policygenius)
  • From 2015 to 2019, California had an average of insured losses $ 10.7 billion a year. That is 40% higher than the next state, Florida, and greater than the combined losses of the 29 States with the lowest insured damage to home ownership. (Policy genius)
  • Florida counted 6,821 Lightning damage that too $ 93.2 million for insured damage and thus the federal state with the most lightning damage in 2019. (Policygenius)
  • More than 2 million In California alone there are houses in designated high risk areas for forest fires. This is the highest residential pollution in the country. (Policy genius)
  • Texas has most of the hail damage 637.977 Claims between 2017 and 2019 (Policygenius)

Statistics on household insurance

  • Around 85% of homes in the US have home insurance to cover them. (WertPenguin)
  • 79.09% of household contents insurance apply to HO-3 policies, which are also known as broad form policies. (National Association of Insurance Commissioners, NAIC)
  • The national average for household insurance is $ 1,445 yearly. (WertPenguin)
  • The national average of home insurance for a home worth $ 250,000 is $ 1,312 yearly. (Bank rate)
  • Almost half- 47%– the homeowner do not know what their insurance covers. (WertPenguin)
  • 60% of homeowners underestimate the replacement value of their homes. The average undervaluation is 17%. (Marshall & Swift / Boeckh)
  • In 2019, the net premiums booked amounted to approx. $ 93 trillion. (Statista)
  • 65% homeowners save on their contents insurance through bundling discounts – the combination of contents insurance with car, mobile home or other policies. (J. D. Macht)
  • Home insurance premiums are likely to be increase after experiencing a theft. However, if theft rates increase in your zip code, you will likely see an increase in your home insurance premium even if you did not personally suffer theft damage. (Bank rate)

Facts and statistics on the non-renewal of the directive

Policy non-renewal has increased over the past two decades. The main reason for this increase was increased exposure to weather-related risks. Laws and government programs have mitigated some of the worst effects of non-renewal.

  • In the US there are many programs to help homeowners high risk Areas of access to home insurance. These homeowners would otherwise be excluded from taking out home insurance in the standard market. (III)
  • That Fair access to insurance requirements (FAIR) Plans provide property insurance for people in risk areas. These include beach and storm plans and the state insurance companies – Florida's Citizens Property Insurance Corp. and Louisiana's Citizens Property Insurance Corp. (III)
  • MESSE and beach and storm plans have seen huge growth since 1980, both in terms of the number of properties insured and in terms of risk value. (III)
  • Fortunately, the number of FAIR plans peaked in 2011. Between 2011 and 2019, the number of policies concluded is down. sunk 48.5% and the exposure value decreased by 51%. (III)

Home Insurance Costs: Trends and Statistics

The cost of home insurance has risen sharply over the past 30 years. It has consistently outperformed inflation.

  • Homeowners insurance premiums are increasing. Premiums rose 1.6% Then one more in 2017 3.1% in 2018. (NAIC)
  • Between 2005 and 2018, the average cost of an annual home insurance premium rose to $ 764 per year $ 1,249 per year. (Statista)
  • Between 2013 and 2018, the average premium costs for home insurance increased fifteen%. (WertPenguin)
  • The premiums for tenant insurance are falling. Costs down by 2.7% in 2017 and then up 0.6% in 2018. (III)
  • Houses worth $ 750,000 costs $ 2,695 to be insured annually on average in 2018 (Statista)
  • Houses built with brick or masonry cost $ 1,216 to be insured on average for 2018. (Statista)
  • The average cost of Liberty Mutual home insurance in 2018 was $ 1,216 per year. (Statista)

Home insurance industry statistics

  • In the first half of 2020, the property and casualty insurance industry (household, auto, boat, etc.) posted net income of $ 27 billion. While this may seem like a lot, it is actually a significant decrease over the past few years. 23% less than 2019 profit. (NAIC)
  • Early 2020 waste profitability is attributed to the fluctuations in the stock markets at the beginning of the pandemic. (NAIC)
  • For residential multiple insurances in 2019 $ 103,995,754,245 all in all, direct premiums were booked. (NAIC)
  • 6th Insurance companies include 50% of the total U.S. property and casualty insurance market in 2019 – a market that spans the U.S. Territories and Canada. (NAIC)
  • The summit 5 largest insurer includes 45% of the market in 2019 (ValuePenguin)
  • Although the group of top insurers has changed over the past seven years, the top five insurers include between each year 45% and 50% of the market. (WertPenguin)
  • In 2019, State Farm was the biggest both in terms of market share and the number of rewards booked. (NAIC)
  • State Farm is the largest insurer consisting of 17% Industry market share in 2017. Other top insurers include Allstate, Liberty Mutual and USAA. (Statista)
  • An insurer's loss ratio is a good indicator of the company's financial sustainability. A ratio greater than 100 indicates that the insurer pays more claims than it takes in premiums, which is a recipe for poor financial performance. A ratio less than 60 is a sign of financial strength. (Corporate Finance Institute)
  • The ratio of gross direct losses to State Farm premiums earned was 58.75 in 2019. (BankRate)
  • In 2019, the ratio of gross direct loss to earned premiums was below all 6 largest insurers 60. Farmers Insurance had the cheapest rating 38.72. (Bank rate)
  • In the first half of 2020, many countries recorded growth in direct premiums written for homeowner insurance compared to the same period in the previous year. (NAIC)
  • In terms of direct rewards booked, State Farm saw the largest increase in 2019 $ 18.68 billion with rewards. (Statista)
  • In 2019, Allstate wrote about $ 8.7 billion in direct premiums for home insurance and offset 8.4% of market share. (Statista)
  • Liberty Mutual accounts 6.5% of market share in 2019 (Statista)
  • The states with the largest increase of the direct rewards booked in the first half of 2020 were: Idaho, Arkansas, Iowa and Florida. (NAIC)
  • Several states saw a waste in the direct awards booked in the first half of 2020, including New York, Illinois, New Jersey, Hawaii, North Dakota, Delaware, Vermont and West Virginia. (NAIC)
  • The net worth of home reinsurance – an insurance that one insurance company buys from another insurance company to reduce risk – went down $ 56.5 billion in 2017 to $ 56.2 billion in 2018. (S&P Global Market Intelligence)

Property damage trends and statistics

While the number of claims in home insurance fluctuates every year, the overall trend in claims is increasing in both frequency and severity. Many sources attribute this increase to increased risk exposure due to population expansion and an increased frequency of severe weather events.

  • The average payout for a loss in the home insurance is $ 8,787. (Insurance Research Council)
  • In 2019, the cost of all risk losses decreased 13% compared to 2018. (LexisNexis)
  • The losses in 2019 from forest fires, hurricanes, hailstorms and floods were severe, but lower both in terms of severity and frequency compared to 2017 and 2018. (LexisNexis)
  • Catastrophic damage (think natural disasters) from storms – wind, fire, and lightning – decreased 32% in 2019. (LexisNexis).
  • In 2019, 90% of all catastrophic damage was caused by wind and hail, an increase over the previous year. (Bank rate)
  • In 2019 the severity of weather-related water events increased. (Bank rate)
  • Population growth is the main reason for the increasing loss of real estate due to human development in storm-prone regions. (III)
  • Between 2013 and 2019, the states with the highest Property damage costs were Colorado and Nebraska. (LexisNexis)
  • Without property damage from hurricanes and severe storms, the average damage amount is $ 8,772 and the frequency is 1 in 29 Houses per year. (WertPenguin)
  • The losses from home insurance were approximate $ 56.23 billion in 2018. (Statista)

Insurance expertise

Understanding the basics of home insurance is fundamental to getting the right insurance coverage for you at the lowest possible cost.

  • HO-1 and HO-2 Directives are called "Named danger" as they only cover damage resulting from the risks specified in the policy. (WertPenguin)
  • HO-3 and HO-5 Directives are called "Open danger" Politics because they exclude Cover only for the risks specified in the policy. (WertPenguin)
  • HO-8 The policies are designed for older and higher quality houses. (WertPenguin)
  • Named danger Policies typically include some or all of the following:
    • Fire and lightning
    • Smoke damage
    • Theft
    • Storm or hail
    • Freeze pipes
    • Damage from the weight of ice, sleet, or snow
    • falling objects
    • Explosions
    • Volcanic eruption
    • Riots
    • vandalism
    • Aircraft damage
    • Damage from vehicles
    • Electrical damage
    • Water damage from plumbing, heating or air conditioning overflow
    • Damage from cracking, tearing, and burning a water heater (Insurify)
  • Open danger Policies typically exclude some or all of the following:
    • earthquake
    • Earthmoving
    • Sinkholes
    • Floods
    • Acts of war
    • Nuclear Accidents (Insurify)
  • Cover up Exclusions, homeowners should either purchase a passenger or a separate policy that covers this hazard. For example, many homeowners take out separate flood insurance. (Assure)

Methodology & Sources

Statistics from the following institutions have been integrated on this page: Insurify, Insurance Information Institute, Insurance Research Council, BankRate, Insurance Services Office, ValuePenguin, United States Geological Survey, National Safety Council, Policygenius, Statista, Enservio, National Association of Insurance Commissioners, Marshall & Swift / Boeckh, JD Power, Corporate Finance Institute, S&P Global Market Intelligence and LexisNexis.

Data mapping: The use of the information, statistics and data visualizations on this page is free of charge; we only ask you to assign any full or partial use to Insurify via a link to this page.

Updated August 16, 2021

J. J. Starr is a health and finance writer who is happy to help readers find the information they need. In addition to her background in banking and financial advisory, she is also a poet with an MFA from New York University. She lives in Amherst, Massachusetts. Please visit jjstarrwrites.com for more information.

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