Homeowners insurance statistics

Stats to help you understand homeowners insurance — from the most common types of claims to how much it costs.

Pat Howard 1600

Pat Howard

Published July 24, 2019

Homeowners insurance by the numbers

Stats about homeowners

63.9% • Percentage of housing units in the United States that are owner-occupied1

95% • Percentage of homeowners in the United States who have homeowners insurance2

43% • Percentage of homeowners who incorrectly believe that their homeowners insurance covers flood damage2

52% • Percentage of homeowners who have a home inventory of their personal possessions2

Stats about homeowners insurance coverage

60% • Percentage of homes in the U.S. that are underinsured

44% • Percentage of homeowners insurance policyholders who comparison shop when their policy is up for renewal2

$1,192 • The average annual cost of a standard HO-3 homeowners insurance policy, as of 20162

14 • The number of homeowners insurance carriers offered by Policygenius

6 • The number of coverage components in a standard homeowners insurance policy, which consist of:

  • Dwelling coverage
  • Other structures coverage
  • Personal property coverage
  • Loss-of-use coverage
  • Liability coverage
  • Medical payments coverage

Stats about homeowners insurance claims

5% • Percentage of insured homes with at least one claim each year2

98% • Percentage of total claims that are filed due to property damage, including theft2

$12,474 • The average homeowners insurance claim amount2


Sources

1.U.S. Census
2.Insurance Information Institute

In this article:

Average cost of homeowners insurance by state

The average cost of a homeowners insurance policy is $1,192 as of 2016, according to the Insurance Information Institute. But insurance costs vary considerably from state to state. States located on the Atlantic coast or in a tornado-prone region, for example, have a higher average annual premium than landlocked states with more mild weather.

But ultimately, your premium amount depends on where exactly your home is situated. A Florida home 100 miles from the coast could be a quarter as expensive to insure as a home 10 miles from the coast at greater risk of tropical storm damage. Similarly, a home in an area with low theft rates will probably be cheaper to insure than a home in a more theft-prone area.

Here’s the average annual premium for homeowners insurance by state in 2016, according to the Insurance Information Institute.

StateAverage annual home insurance premiumStateAverage annual home insurance premium
Alabama$1,386Montana$1,130
Alaska$974Nebraska$1,402
Arizona$803Nevada$742
Arkansas$1,348New Hampshire$965
California$1,000New Jersey$1,174
Colorado$1,446New Mexico$996
Connecticut$1,455New York$1,309
Delaware$816North Carolina$1,098
D.C.$1,225North Dakota$1,239
Florida$1,918Ohio$850
Georgia$1,200Oklahoma$1,875
Hawaii$1,026Oregon$659
Idaho$703Pennsylvania$927
Illinois$1,042Rhode Island$1,496
Indiana$1,003South Carolina$1,285
Iowa$945South Dakota$1,125
Kansas$1,548Tennessee$1,185
Kentucky$1,085Texas$1,937
Louisiana$1,967Utah$664
Maine$866Vermont$898
Maryland$1,022Virginia$966
Massachusetts$1,451Washington$822
Michigan$952West Virginia$917
Minnesota$1,340Wisconsin$762
Mississippi$1,525Wyoming$1,120
Missouri$1,280
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Top homeowners insurance companies by market share

The National Association of Insurance Commissioners (NAIC) tracks and lists the largest providers of homeowners insurance by market share. Each company’s market share represents a percentage of the total residential home insurance market. Here are the top homeowners insurance companies by market share as of 2018, according to the NAIC.

HOMEOWNERS INSURANCE COMPANIESMARKET SHARE
State Farm18.40%
Allstate8.36%
Liberty Mutual6.74%
USAA6.24%
Farmers5.86%
Travelers3.81%
American Family3.32%
Nationwide3.22%
Chubb2.87%
Erie1.70%

Our list of the best homeowners insurance companies of 2019

Below is our list of the best homeowners insurance companies of 2019, which we compiled based on a number of factors, including, but not limited to:

  • Financial stability
  • Customer service
  • Claims satisfaction
  • Coverage quality
  • Policy value

HOMEOWNERS INSURANCE COMPANIESJ.D. POWER HOMEOWNERS INSURANCE RATINGA.M. BEST RATINGMARKET SHARE
AIG3/5A1.17%
Allstate3/5A+8.37%
Amica5/5A+0.92%
Chubb3/5A++2.87%
Erie5/5A+1.70%
Farmers2/5A5.87%
GeicoN/AA++N/A
Hartford3/5A+1.00%
HippoN/AA-N/A
Kemper PreferredN/AA-N/A
Liberty Mutual3/5A6.74%
Metlife3/5A1.12%
Nationwide3/5A+3.23%
Pacific SpecialtyN/AA-N/A
ProgressiveN/AA+1.42%
Safeco (a division of Liberty Mutual)3/5AN/A
State Farm4/5A18.42%
StillwaterN/AA-N/A
SwyfftN/AA-N/A
¨C13CN/AA-N/A
¨C14C3/5A++3.82%
¨C15CN/AA++6.25%
Market share data courtesy of the National Association of Insurance Commissioners.

Most common homeowners insurance claims

Here are the most common homeowners insurance claims, along with the average settlement for each type of claim from 2013-2017, according to the Insurance Information Institute.

Cause of lossClaims per 100 policiesAverage claim settlement
Property damage5.39$12,322
Fire and lightning0.28$68,322
Wind and hail2.1$10,182
Water damage and freezing2.05$10,234
Theft0.31$4,264
Other0.66$5,823
Liability0.12$19,531
Bodily injury and property damage0.08$26,085
Medical payments0.04$3,465
Average (property damage and liability)5.51$12,474

As you can see, fire and lightning-related claims are among the most infrequent but are far and away the most expensive claims you can file. One can assume that’s because fire and lightning damage often results in immense structural loss, and in some cases a total loss, meaning your entire home needs to be rebuilt.

On the liability end, claims are even more infrequent, but they’re also quite expensive. That’s because liability claims often result in civil litigation, and all the expenses related to the lawsuit — medical expenses, attorney fees, and the damage amount — are often very high. The liability component of your homeowners insurance policy pays for all of those expenses.