Homeowner Insurance Statistics

Contributions by 2 experts

Updated: May 22, 2024

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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.

Key Takeaways:


Insurance is an ideal way to protect your most expensive investment: Your home. Review the statistics below to see how it’s helped homeowners across the U.S.

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By the end of 2021, homeownership rates in the U.S. hit 65.5%.

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In the U.S., 93% of homeowners have some form of home insurance.

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Claims are made in 1 in 20 insured homes annually, while 1 in 40 homes make a claim related to wind and hail.

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Tennessee was the most expensive state for homeowners insurance; Delaware was the least costly, on average.

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











% of Tenants or Condominium Owners With Each Coverage, 2019
Type of Policy
Coverage Percentage





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


Fire and lightning


Water damage and freezing


Wind and hail




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

Wind and hail






damage and






Fire and












All other






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


Bodily injury and property damage


Water damage and freezing


Wind and hail


All other property damage


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.

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:

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.


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

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.

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.

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
Direct Premiums Earned
DL/EP Ratio
Market Share (%)
Cumulative Market Share (%)









United Service













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.

Will homeowners insurance cover my home business?
How many Americans have no homeowners insurance?
What is the most common cause of homeowners insurance claims?
What is the most popular home insurance policy type?
What state has the most expensive home insurance premium average?

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?
Stacey A. Giulianti
Stacey A. GiuliantiCo-Founder & Chief Legal Officer at Florida Peninsula Insurance Company
Scott W. Johnson
Scott W. JohnsonFounder & Manager at Marindependent Insurance Services

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 Nathan Paulus

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Nathan Paulus is the Head of Content Marketing at MoneyGeek, with nearly 10 years of experience researching and creating content related to personal finance and financial literacy.

Paulus has a bachelor's degree in English from the University of St. Thomas, Houston. He enjoys helping people from all walks of life build stronger financial foundations.