Homeowner Insurance Statistics

Most U.S. homeowners have home insurance, and property damage is the most common reason they file claims.

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Last Updated: 10/24/2022
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Next to auto and life insurance, home insurance is one of the most sought-after insurance policies — and for good reason. Home insurance financially protects your home and assets in the instance of damage or loss, which happens more often than you think. About 1 in 20 insured homeowners file a claim each year, whether it’s related to fire and lightning, water damage or theft.

Purchasing home insurance can ensure that your most expensive asset is covered, even if it’s not legally required. By understanding home insurance statistics, you can learn how valuable coverage can be for any homeowner.

Most Purchased Homeowner Insurance Coverages

As a homeowner, you can select from several types of insurance policies, also known as "forms." There are eight primary policy types; what you need will depend on your home's structure and the level of coverage you want.

The HO-3 home insurance policy, which offers a broad range of coverage, is the most common form of home insurance. It covers almost any peril, save for any losses specifically stated as excluded from coverage by the insurer. Conversely, HO-1 has the most basic coverage, only offering protection against 11 perils. There is also an HO-4 policy, or renters insurance, along with an HO-6 home insurance policy or condo/co-op insurance.

% of Homeowners With Each Coverage, 2019
  • Type of Policy
    Coverage Percentage
  • HO-1
    1.62%
  • HO-2
    6.12%
  • HO-3
    77.68%
  • HO-5
    14.09%
  • HO-8
    0.49%
% of Tenants or Condominium Owners With Each Coverage, 2019
  • Type of Policy
    Coverage Percentage
  • HO-4
    73.86%
  • HO-6
    26.14%

Note that an HO-4 policy is designed for renters, while an HO-6 policy is for condos and co-ops. These types of policies are typically lumped together, with 77.86% opting for an HO-4 policy over an HO-6 policy. The rest (HO-1, HO-2, HO-3, HO-5 and HO-8) are meant for single-family homes and other housing units.

Homeowner Insurance Claims Statistics: Frequency and Severity

Home insurance claims statistics provide insight into the frequency and severity of claims in different parts of the country. While frequency entails how often it happens, the severity outlines the monetary losses. Understanding both can underscore the importance of having a policy.

For example, 5.1% or 1 in 20 insured homes make a claim each year — for varying reasons. 97.2% of claims are due to property damage, such as wind and hail, theft and more, while 2.8% are due to liability, such as medical payments and property damage. Learn more about claims statistics in the table below.

Reasons, Frequency & Severity of Home Insurance Claims 2015–2019
  • Causes of Loss
    Claim Frequency*
  • Property Damage

    5.57

  • Fire and lightning

    0.27

  • Water damage and freezing

    1.9

  • Wind and hail

    2.45

  • Theft

    0.23

  • All other

    0.71

  • Liability

    0.10

  • Bodily injury and property damage

    0.07

  • Medical payments and other

    0.03

  • Credit Card and Other

    Less than 0.1

  • Total Average

    5.67

Source: Insurance Information Institute

*Claims per 100 house years.

The table shows that between 2015 and 2019, the majority of claims were made because of bodily injury and property damage.

Most Common Causes of Homeowner Insurance Claims

Throughout the years, rates of common claim reasons have differed; knowing the most common reasons can help you prepare for and adjust your policy limits accordingly. For instance, in 2017, 41% of claims were due to wind and hail, up by 18.5% from 2015. On the other hand, claims regarding bodily injury, which was 3.7% in 2015, went down slowly over the years and stood at 2.4% in 2019.

Discover some of the most common claim causes over a five-year period in the table below.

Reasons Behind Home Insurance Claims By Year
  • Causes of Loss
    2015
    2016
    2017
    2018
    2019
  • Wind and hail

    22.5%

    33.4%

    41%

    36.3%

    34.3%

  • Water
    damage and
    freezing

    42.4%

    29%

    18.7%

    23.7%

    29.4%

  • Fire and
    lightning

    23.7%

    26.2%

    32.2%

    30.2%

    25.1%

  • Theft

    1.9%

    1.9%

    1.1%

    1%

    1%

  • All other
    property
    damage

    5.6%

    5.7%

    4.5%

    6.5%

    7.4%

  • 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

    Less than
    0.1%

    Less than
    0.1%

    Less than
    0.1%

    Less than
    0.1%

    Less than
    0.1%

  • Total

    100%

    100%

    100%

    100%

    100%

Most Expensive Homeowner Insurance Claims

Not all home insurance claims are expensive: Some are more severe and costly than others. For example, property damage claims cost more than liability claims, and specific occurrences damage property more often than others. The table below showcases which claims cost insurers the most.

Most Expensive Home Insurance Claims Causes, 2015–2019
  • Causes of Loss
    Claim Costs
  • Fire and lightning

    $78,838

  • Bodily injury and property damage

    $29,752

  • Water damage and freezing

    $11,098

  • Wind and hail

    $10,801

  • All other property damage

    $6,406

  • Medical payments and other

    $5,802

  • Theft

    $4,328

  • Credit card and other

    $672

Generally, property damage losses cost more than all liability claims combined, with fire and lightning costing the most. This illustrates the importance of getting ample dwelling coverage in your insurance policy.

However, in terms of liability claims, bodily injury and property damage cost the highest.

Graphic of coins and a home insurance policy on a clipboard

Average Cost of Homeowner Insurance Ranked by State

Thanks to numerous external factors, the average cost of home insurance varies by state. This can include the number of thefts in your neighborhood, the likelihood of floods or earthquakes and more. Case in point, the average cost of home insurance in Massachusetts for $500,000 in dwelling coverage is $2,864 per year, while in Hawaii, it costs an average of $764 for the same coverage. Discover your state’s average homeowners insurance costs in the map below.

Top 5 Most Expensive States for Homeowner Insurance Premiums

Certain states have more expensive home insurance rates than others, as location is a key factor in determining premiums. This includes how old the area is, how close your home is to other buildings, what type of fire services are nearby, crime rates, government regulations and more. The higher the perceived claim risk is in your area, the higher your premiums will be.

Below are the top five states with the most expensive home insurance premiums.

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    Tennesse

    The average cost of home insurance in Tennesse is the highest across the country, averaging $3,466 per year. This is 65% higher than the national average, which may be due to the hazards that Tennesse is exposed to, such as drought, earthquakes, tornadoes, severe weather and more.

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    Texas

    Home insurance in Texas costs an average of $3,390 per year and is 61% more expensive than the national average. Similar to Tennessee, this may be because Texas experiences the highest frequency and severity of natural disasters.

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    South Carolina

    The average cost of home insurance in South Carolina is $3,377 per year, which is only $13 less than the average cost for Texas.

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    Colorado

    It costs an average of $3,156 per year to insure a home in Colorado, which may be due to the risk of severe weather, such as snow and hail storms.

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    Nebraska

    Nebraska home insurance costs an average of $2,972 per year. This is 41% higher than the state average and ranks it as the fifth most expensive state to insure a home.

Top 5 Least Expensive States for Homeowner Insurance Premiums

In some states, home insurance is more affordable. This is because the likelihood of filing a claim in that area is lower. For instance, there may be a lower crime rate or risk of natural disasters compared to other areas.

The states with the most affordable home insurance premiums are detailed below.

Factors Affecting Your Homeowner Insurance Costs

When determining pricing, some factors matter more than others, such as the age of the home or your location. How these factors are weighted, however, can vary from insurer to insurer, which is why it’s always important to compare home insurance quotes from several providers.

A policy's price is determined by several factors, including:

1

Coverage Type

It's more expensive to replace the dwelling and contents than actual cash value, but it's worth it to not have to pay for depreciated value in the event of a loss.

2

Deductible

Higher deductibles mean lower premiums but higher out-of-pocket expenses if you file a claim.

3

Coverage Limits

Your dwelling and personal property coverage limits can significantly affect your insurance premiums. The higher it costs to rebuild your home, the more coverage you need.

4

Age of Home

Generally, the older the house, the more likely you'll make a claim, and the more expensive the payout will be to repair or replace it. This often leads to higher premiums, regardless of your dwelling coverage limits.

5

Home Location

Location is, as demonstrated, a key factor in determining premiums. In an area with a dense population and more weather-related events, premiums are more likely to be more expensive.

Graphic of woman holding piece of pie chart representing market share of each homeowners insurance company

Homeowner Insurance Companies Statistics Ranked by Market Share

The market share of an insurer is a crucial factor to consider when selecting the best home insurance provider. Larger companies tend to have better benefits and convenience, while smaller companies may have lower premiums. Reviewing their financial health can also grant you insight into how reliable the company is and how well they can support your claim. Learn more about home insurance companies by examining their market share and other statistics in the table below.

Home Insurance Companies By Market Share 2019
  • Company
    Direct Premiums Earned
    DL/EP Ratio
    Market Share (%)
    Cumulative Market Share (%)
  • $65,180,403,219

    58.6

    18.0

    18.0

  • $8,492,576,270

    52.3

    8.4

    26.4

  • United Service
    Automobile
    Association

    $6,491,910,720

    63.5

    6.6

    32.9

  • $6,691,343,537

    51.0

    6.5

    39.4

  • $5,869,634,053

    38.7

    5.7

    45.1

  • $3,972,510,933

    55.8

    4.1

    49.2

  • American Family

    $3,863,377,151

    61.8

    3.9

    53.1

  • $3,199,085,340

    57.5

    3.1

    56.2

  • Chubb

    $2,894,510,591

    62.5

    2.9

    59.1

  • $1,713,815,363

    68.5

    1.7

    60.8

  • Auto Owners

    $1,641,196,431

    56.5

    1.6

    62.4

  • $1,522,992,880

    67.0

    1.6

    64.0

  • Universal
    Insurance

    $1,158,240,071

    82.3

    1.2

    65.2

  • Metropolitan
    Insurance Group

    $1,107,973,270

    52.3

    1.1

    66.2

  • American
    International

    $1,125,466,818

    86.3

    1.1

    67.3

  • $969,833,077

    44.0

    0.9

    68.2

  • CSAA

    $937,156,383

    25.1

    0.9

    69.1

  • $927,707,747

    52.7

    0.9

    70.0

  • United Insurance

    $829,836,659

    67.1

    0.8

    70.9

  • Auto Club
    Enterprises
    Insurance

    $838,295,829

    52.4

    0.8

    71.7

  • National General
    Insurance

    $829,650,549

    48.4

    0.8

    72.5

  • Heritage
    Insurance

    $789,064,912

    63.6

    0.8

    73.2

  • $716,606,762

    65.2

    0.7

    74.0

  • Assurant

    $694,262,848

    38.6

    0.7

    74.6

  • Automobile Club

    $693,617,904

    65.6

    0.7

    75.3

Direct premiums earned stand for the total amount policyholders paid for home insurance, while direct loss to direct premium ratio identifies the proportion of direct premiums used to pay for claims. The higher the direct premium earned, the more policies that provider has, which can indicate their reliability and popularity. A low ratio also means that fewer claims are being made.

Given the data above, State Farm is the largest home insurer by market share in the U.S., holding 17.97% of the market and having earned premiums upwards of $18 billion.

Homeowner Insurance Statistics FAQs

To better understand homeowners insurance statistics and what a policy entails, review the frequently asked questions (FAQs) below.

Expert Insights

To help you deepen your understanding of homeowner insurance, MoneyGeek has compiled insights from several industry professionals.

  1. What statistics should policyholders look at when looking for a policy?
  2. Should policyholders consider the market share of a company when selecting home insurance? Why or why not?
Scott W. Johnson
Scott W. Johnson

Founder & Manager at Marindependent Insurance Services

Stacey A. Giulianti
Stacey A. Giulianti

Co-Founder & Chief Legal Officer at Florida Peninsula Insurance Company

Related Content

Understanding home insurance, how it works and why you need it is more than just the statistics. Learn more about home insurance in the resources below.

About the Author


expert-profile

Nathan Paulus is the director of content marketing at MoneyGeek. Nathan has been creating content for nearly 10 years and is particularly engaged in personal finance, investing, and property management. He holds a B.A. in English from the University of St. Thomas Houston.


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