More on Home Insurance
More on Home Insurance
Stats to help you understand homeowners insurance — from the most common types of claims to how much it costs.
Updated December 17, 2020
TABLE OF CONTENTS
63.9% • Percentage of housing units in the United States that are owner-occupied†
95% • Percentage of homeowners in the United States who have homeowners insurance‡
43% • Percentage of homeowners who incorrectly believe that their homeowners insurance covers flood damage‡
52% • Percentage of homeowners who have a home inventory of their personal possessions‡
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 renewal‡
$1,192 • The average annual cost of a standard HO-3 homeowners insurance policy, as of 2016‡
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:
Other structures coverage
Personal property coverage
Medical payments coverage
5% • Percentage of insured homes with at least one claim each year‡
98% • Percentage of total claims that are filed due to property damage, including theft‡
$12,474 • The average homeowners insurance claim amount‡
† U.S. Census
‡ Insurance Information Institute
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.
|State||Average annual home insurance premium||State||Average annual home insurance premium|
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 COMPANIES||MARKET SHARE|
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:
|HOMEOWNERS INSURANCE COMPANIES||J.D. POWER HOMEOWNERS INSURANCE RATING||A.M. BEST RATING||MARKET SHARE|
|Safeco (a division of Liberty Mutual)||3/5||A||N/A|
Market share data courtesy of the National Association of Insurance Commissioners.
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 loss||Claims per 100 policies||Average claim settlement|
|Fire and lightning||0.28||$68,322|
|Wind and hail||2.1||$10,182|
|Water damage and freezing||2.05||$10,234|
|Bodily injury and property damage||0.08||$26,085|
|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.
Pat Howard is a homeowners insurance editor at Policygenius in New York City. He has written extensively about home insurance cost, coverage, and companies since 2018, and his insights have been featured on Investopedia, Lifehacker, MSN, Zola, HerMoney, and Property Casualty 360.
Was this article helpful?