Stats to help you understand homeowners insurance — from the most common types of claims to how much home insurance costs.
Updated April 22, 2021|3 min read
Table of Contents
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‡
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:
Other structures coverage
Personal property coverage
Medical payments coverage
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‡
† U.S. Census
‡ Insurance Information Institute
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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.
|State||Average annual premium||State||Average annual premium|
|District of Columbia||$1,264||North Dakota||$1,293|
Check out our state-by-state homeowners insurance guide to learn more about home insurance in your state.
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 COMPANIES||MARKET SHARE|
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:
|Homeowners insurance company||Policygenius rating||J.D. Power rating||A.M. Best Rating|
|Plymouth Rock||8||Not rated||A-|
|State Auto||7.6||Not rated||A-|
|Tower Hill||7.5||Not rated||A-|
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 loss||Claims per 100 policies||Average claim settlement|
|Fire and lightning||0.28||$79,785|
|Wind and hail||2.30||$11,200|
|Water damage and freezing||2.05||$10,849|
|Bodily injury and property damage||0.08||$26,872|
|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.
Before taking out a mortgage, your lender will require that you get enough homeowners insurance to pay for a rebuild of the home in the event of fire or storm damage.
Coverage for your home business is fairly limited under your homeowners policy. To maximize coverage for your home-based business, you’ll need separate home business insurance.
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