Homeowners insurance statistics

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

Pat Howard 1600Kara McGinley

By

Pat Howard

Pat Howard

Property and Casualty Insurance Expert

Pat Howard is a senior editor at Policygenius specializing in property and casualty insurance. His work has been featured on Property Casualty 360, Fatherly, MarketWatch, and more.

&

Kara McGinley

Kara McGinley

Property and Casualty Insurance Expert

Kara McGinley is an insurance editor at Policygenius, specializing in home, auto, and renters insurance. She's been writing about insurance since 2019, and her work and insights have been referenced in Kiplinger and WRAL.com.

Updated April 22, 2021|3 min read

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Homeowners insurance by the numbers

Stats about homeowners

65.8% • Percentage of housing units in the United States that are owner-occupied†

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

53.3% • Percentage of homeowners who incorrectly believe that their homeowners insurance covers flood damage*

49.4% • Percentage of homeowners who mistakenly believe the amount of home insurance needed should be based on the home’s market value*

49% • Percentage of homeowners who have a home inventory of their personal possessions‡

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 renewal‡

$1,249 • The average annual cost of a standard HO-3 homeowners insurance policy, as of 2018‡

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

5.7% • 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‡


Sources

† U.S. Census

‡ Insurance Information Institute

* Policygenius Home Insurance Literacy Survey 2020

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Average cost of homeowners insurance by state

The average cost of a homeowners insurance policy is $1,249 as of 2018, according to the NAIC. 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. Louisiana currently has the highest home insurance rates, costing $1987 annually, while Oregon has the lowest rates in the country with a $706 annual premium. 

Here’s the average annual premium for homeowners insurance by state in 2018, according to the NAIC.

StateAverage annual premiumStateAverage annual premium
Alabama$1,409Montana$1,237
Alaska$984Nebraska$1,569
Arizona$843Nevada$776
Arkansas$1,419New Hampshire$984
California$1,073New Jersey$1,209
Colorado$1,616New Mexico$1,075
Connecticut$1,494New York$1,321
Delaware$873North Carolina$1,103
District of Columbia$1,264North Dakota$1,293
Florida$1,960Ohio$874
Georgia$1,313Oklahoma$1,944
Hawaii$1,140Oregon$706
Idaho$772Pennsylvania$943
Illinois$1,103Rhode Island$1,630
Indiana$1,030South Carolina$1,284
Iowa$987South Dakota$1,280
Kansas$1,617Tennessee$1,232
Kentucky$1,152Texas$1,955
Louisiana$1,987Utah$730
Maine$905Vermont$935
Maryland$1,071Virginia$1,026
Massachusetts$1,543Washington$881
Michigan$981West Virginia$970
Minnesota$1,400Wisconsin$814
Mississippi$1,578Wyoming$1,187
Missouri$1,383

Check out our state-by-state homeowners insurance guide to learn more about home insurance in your state.

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 2020, according to the NAIC.

HOMEOWNERS INSURANCE COMPANIESMARKET SHARE
State Farm9.12%
GEICO6.37%
Progressive5.57%
Liberty Mutual4.99%
Allstate4.73%
Travelers3.97%
USAA3.39%
Chubb3.32%
Farmers2.77%
Nationwide2.55%

Best homeowners insurance companies of 2021

Below is our list of the best homeowners insurance companies of 2021, 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 companyPolicygenius ratingJ.D. Power ratingA.M. Best Rating
USAA8.75/5A++
Amica8.55/5A+
Encompass8.3Not ratedA+
Plymouth Rock8Not ratedA-
Acuity8Not ratedA+
Chubb82/5A++
Hippo8Not ratedA-
State Farm84/5A
Nationwide7.72/5A+
Travelers7.72/5A++
State Auto7.6Not ratedA-
Stillwater7.6Not ratedA-
Swyfft7.6Not ratedA-
Farmers7.53/5A
Tower Hill7.5Not ratedA-
Allstate7.43/5A-
Safeco7.32/5A
Mercury7.2Not ratedA
AIG72/5A
Erie6.95/5A+
Velocity6.9Not ratedA
GEICO6.4Not ratedA++
Progressive6.63/5A+
Foremost6.5Not ratedA
MetLife6.52/5A

Most common homeowners insurance claims

Here are the most common homeowners insurance claims, along with the average settlement for each type of claim from 2014-2018, according to the Insurance Information Institute.

Cause of lossClaims per 100 policiesAverage claim settlement
Property damage5.53$13,687
Fire and lightning0.28$79,785
Wind and hail2.30$11,200
Water damage and freezing2.05$10,849
Theft0.26$4,391
Other0.64$6,598
Liability0.12$20,371
Bodily injury and property damage0.08$26,872
Medical payments0.03$3,707
Average (property damage and liability)5.64$13,814

Fire and lightning-related claims are among the most infrequent but are far and away the most expensive claims you can file. That’s likely because fire and lightning damage often results in immense structural loss, and in some cases a total loss of your home.

On the liability end, claims are 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.

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