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Homeowners Insurance Statistics In 2022: Claims And Coverage

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Published on November 8, 2021
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Do you have enough coverage to protect your home in case of loss? Your home is likely your biggest asset, and homeowners insurance can help you reduce financial risk. Most lenders require you to purchase home insurance before closing on your loan, but how does your policy compare to the rest of the nation? And what claims are you most likely to use? Keep reading to learn these homeowners insurance statistics and more.

Key Takeaways:

  • Homeowners insurance costs vary depending on several factors, but on average, Americans pay about $1,585 annually.
  • The majority of homeowners (93%) have home insurance, and about 1 in 20 homes file a claim annually.
  • Most Americans don't carry adequate coverage to replace their home and its contents in a catastrophic loss.
  • The most common homeowners insurance claims relate to wind and hail damage, but the most expensive claims result from fire and lightning damage.

Table of Contents:

Home Insurance Statistics At A Glance

How many homeowners have insurance, and what’s the average coverage level? Here’s a quick bird’s-eye view of how the population uses homeowners insurance.

  1. U.S. homeownership rates were about 65.4% as of the second quarter of 2021, which represents a 2.3% decline from the previous year. (U.S. Census Bureau, 2021)
  2. About 93% of homeowners have home insurance. (Insurance Information Institute, 2021)
  3. Over half of U.S. homeowners don’t carry adequate insurance to replace their home and its contents in a catastrophic loss. (Federal Emergency Management Agency, 2018)
  4. The median homeowner insurance coverage amount in 2018 was $200,000 – $299,000. (National Association of Insurance Commissioners, 2020)
  5. Nearly $93 million in homeowners multiple peril insurance premiums were written in 2019, the latest data available. (Insurance Information Institute, 2021)

Homeowners Insurance Facts

Homeowners insurance helps protect what’s likely your most valuable asset: your home. When covered damages or liabilities happen, your policy can help reimburse you. Wondering what’s typically covered? Here are the facts on how standard policies usually operate1

  1. Homeowners insurance generally provides coverage for the following areas:                                                           
    1. Dwelling: your home, including covered roof damage
    2. Other structures: garages, decks, fences
    3. Personal property: furniture, clothing, appliances
    4. Loss of use: compensation in the event of necessary relocation
    5. Personal liability: coverage for accidents occurring on your property
    6. Medical protection: payments when a person is injured on your property
  2. Most homeowners insurance policies cover damage from perils such as fire, wind and hail. Mold is sometimes covered if it results from a peril like sudden water damage.
  3. Earthquake and flood coverage are often not included in standard homeowners insurance policies and require endorsements to add coverage.
  4. The most commonly added coverages to homeowners insurance relate to:
    1. Unattached structures
    2. Personal property
    3. Medical payments
    4. Additional living expenses
    5. Sewer backup
    6. Umbrella liability

 

If you’re not sure what coverages your homeowners insurance policy provides, be sure to check your declaration page.

Average Cost Of Household Insurance

Your policy is unique to you – what coverages, limits or deductibles you choose will differ depending on your needs. Likewise, homeowners insurance prices vary greatly from person to person. However, if you’re wondering how much homeowners insurance costs, here are a few averages from the nation:

  1. The average homeowners insurance policy costs $1,585 per year, but rates vary state to state. (NerdWallet, 2021)
  2. Home insurance costs are affected most directly by2:
    1. Coverage amount
    2. Deductible amount
    3. Home construction (Is your home frame wood? Brick?)
    4. Home condition and age
    5. Location
    6. Recreation (Do you have a trampoline or covered pet that may increase your risk for liability claims?)
    7. Past losses
    8. Discounts
  3. Most homeowners insurance policies cover fire damage; however, rates may vary by location. In California, the average fire insurance cost ranges from $1,000 – $2,000. (United Policyholders, 2021)
  4. The average cost of flood insurance was $700 in 2019, which is the latest data from FEMA. (Federal Emergency Management Agency, 2019)
  5. Flood insurance in moderate- to low-risk flood areas can be as low as $325 per year. (Federal Emergency Management Agency, 2018)
  6. Earthquake insurance is typically priced through high deductible plans. Your plan could have anywhere from a 2% – 20% deductible. So if your cost to rebuild is $100,000 and your plan carries a 5% deductible, you would be responsible for $5,000 in costs before your insurance kicks in. (Insurance Information Institute, 2021)

Most Common Homeowners Insurance Claims

Wondering what most homeowners use their insurance for? Be sure you have adequate coverage in these important areas. Here are the most common home insurance claims:

  1. Most homeowners insurance claims between 2015 – 2019 (96.%) were related to property damage. (Insurance Information Institute, 2019)
  2. Between 2015 – 2019, the most common homeowners insurance property damage claims were due to3:
    1. Wind and hail (33.5%)
    2. Water damage and freezing (28.64%)
    3. Fire and lightning damage (27.48%)
  3. The next most common claims between 2015 – 2019 were related to liability (3.04%). (Insurance Information Institute, 2019)

The least common claims between 2015 – 2019 were credit card and other claims (less than 0.1%). (Insurance Information Institute, 2019)

Property Insurance Claims Data

You know what the most common home insurance claims are, but how much will they cost you? On average, fire and lightning are the costliest to homeowners and credit card/other claims are the least. Check out the average costs of these common homeowners insurance claims.

  1. The average cost of a water damage and freezing claim was $11,098 from 2015 – 2019. (Insurance Information Institute, 2019)
  2. The average cost of a fire and lightning claim was $78,838 from 2015 – 2019. (Insurance Information Institute, 2019)
  3. The average cost of a wind and hail claim was $10,801 from 2015 – 2019. (Insurance Information Institute, 2019)
  4. The average cost of a theft claim was $4,328 from 2015 – 2019. (Insurance Information Institute, 2019)
  5. The average cost of a bodily injury and property damage claim was $29,752 from 2015 – 2019. (Insurance Information Institute, 2019)
  6. The average cost of medical payment and other claims was $4,328 from 2015 – 2019. (Insurance Information Institute, 2019)
  7. Credit card and other claims averaged $672 between 2015 – 2019. (Insurance Information Institute, 2019)
  8. All other property damage claims averaged $6,406 in losses from 2015 – 2019. (Insurance Information Institute, 2019)

Claim

Average Cost to Homeowner*

Fire and lightning

$78,838

Bodily injury and property damage

$29,752

Water damage and freezing

$11,098

Wind and hail

$10,801

All other property damage claims

$6,406

Theft

$4,328

Medical payments and other

$4,328

Credit card and other

$672

*Data averaged from 2015 – 20194, 5

Homeowners Insurance Rates By State     

One of the biggest determining factors of insurance cost is location. Homeowners insurance premiums vary widely from state to state, with consumers paying anywhere from $730 to $1,987 on average. See how your state’s prices compare to the rest of the nation.

  1. In 2018, Louisiana had the most expensive insurance premiums, with an average price of $1,987. (Insurance Information Institute, 2020)
  2. The next most expensive premiums were in Florida, at about $1,960 in 2018. (Insurance Information Institute, 2020)
  3. The third highest premiums in 2018 were found in Texas, with an average price of $1,955. (Insurance Information Institute, 2020)
  4. The least expensive premiums for 2018 were in Utah, with an average price of $730. (Insurance Information Institute, 2020)

State

Average Premium*

State

Average Premium*

Alabama

$1,409

Montana

$1,237

Alaska

$984

Nebraska

$1,569

Arizona

$843

Nevada

$776

Arkansas

$1,419

New Hampshire

$984

California

$1,073

New Jersey

$1,209

Colorado

$1,616

New Mexico

$1,075

Connecticut

$1,494

New York

$1,321

Delaware

$873

North Carolina

$1,103

D.C.

$1,264

North Dakota

$1,293

Florida

$1,960

Ohio

$874

Georgia

$1,313

Oklahoma

$1,944

Hawaii

$1,140

Oregon

$706

Idaho

$772

Pennsylvania

$943

Illinois

$1,103

Rhode Island

$1,630

Indiana

$1,030

South Carolina

$1,284

Iowa

$987

South Dakota

$1,280

Kansas

$1,617

Tennessee

$1,232

Kentucky

$1,152

Texas

$1,955

Louisiana

$1,987

Utah

$730

Maine

$905

Vermont

$935

Maryland

$1,071

Virginia

$1,026

Massachusetts

$1,543

Washington

$881

Michigan

$981

West Virginia

$970

Minnesota

$1,400

Wisconsin

$814

Mississippi

$1,578

Wyoming

$1,187

Missouri

$1,383

*Data from 20186

Home Insurance Statistics FAQ

Have other insurance questions? Keep reading for answers to some of the most commonly asked questions.

How Many Insurance Claims Are Filed Each Year?

No exact data exists around how many home insurance claims are filed each year. However, we can calculate a rough estimate: About 3.5 million annually. This assumes an estimated 70 million insured homes7 filing claims at a frequency of 1:20. This estimate does not take into account the possibility of multiple claims filed per household. Numbers may also be skewed by renters participating in the 70 million estimate. 

What Percentage Of People Use Their Homeowners Insurance?

In the 5-year period between 2015 – 2019, 5.7% of insured homeowners filed a claim.8 In other words, about 1 in 20 insured homes file a claim each year.

What Percentage Of People Don’t Have Homeowners Insurance?

According to the 2020 Triple-I Consumer Poll, only 7% of homeowners don’t have homeowners insurance.9 The majority of homeowners have insurance because most lenders require it before you can close on your loan in order to reduce the lender’s financial risk.

Homeowners insurance is an important financial protection for your home. If you’re looking to buy or refinance a home, remember to add its cost to your estimated home loan payment. Or, if you’re looking for a better price, don’t forget that you can always change insurance to fit your needs.

 

Sources:

  1. National Association of Insurance Commissioners
  2. Massachusetts Government
  3. Insurance Information Institute
  4. Insurance Information Institute
  5. Insurance Information Institute
  6. Insurance Information Institute
  7. Insurance Information Institute
  8. Insurance Information Institute
  9. Insurance Information Institute

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Victoria Araj

Victoria Araj is a Section Editor for Rocket Mortgage and held roles in mortgage banking, public relations and more in her 15+ years with the company. She holds a bachelor’s degree in journalism with an emphasis in political science from Michigan State University, and a master’s degree in public administration from the University of Michigan.