The average homeowners insurance premium rose by 7.6 percent in 2021 from 2020, according to a December 2023 study by the National Association of Insurance Commissioners, the latest data available. The average renters insurance premium fell by 1.7 percent in 2021 marking the seventh consecutive annual decline.
According to a 2023 Triple-I/Munich Re Consumer Survey, 47 percent of homeowners said they prepared an inventory of their possessions to help document losses for their insurers.
In 2021, 5.3 percent of insured homes had a claim, according to ISO. Property damage, including theft, accounted for 97.8 percent of homeowners insurance claims in 2022 (latest data available). Changes in the percentage of each type of homeowners loss from one year to another are partially influenced by large fluctuations in the number and severity of weather-related events such as hurricanes and winter storms. There are two ways of looking at losses: by the average number of claims filed per 100 policies (frequency) and by the average amount paid for each claim (severity). The loss category “water damage and freezing” includes damage caused by mold, if covered.
| Year | Claim frequency (2) | Claim severity (3) | Year | Claim frequency (2) | Claim severity (3) |
|---|---|---|---|---|---|
| 2018 | 6.31 | $14,579 | 2021 | 5.39 | 16,801 |
| 2019 | 5.39 | 14,090 | 2022 | 5.45 | 18,311 |
| 2020 | 6.45 | 15,053 | Average (4) | 5.79 | 15,749 |
(1) For homeowners multiple peril policies (HO-2, HO-3, HO-5 and HE-7 for North Carolina). Excludes tenants and condominium policies. Excludes Alaska, Texas and Puerto Rico.
(2) Claims per 100 house-years (policies). One house-year represents policy coverage on a dwelling for 12 months.
(3) Average amount paid per claim; based on accident year incurred losses, excluding loss adjustment expenses, i.e., indemnity costs per accident year incurred claims.
(4) Weighted average, 2018-2022.
Source: ISO®, a Verisk Analytics® business.
(Percent of losses incurred)
| Cause of loss | 2018 | 2019 | 2020 | 2021 | 2022 |
|---|---|---|---|---|---|
| Property damage (2) | 97.4% | 96.7% | 97.2% | 97.0% | 97.8% |
| Wind and hail | 40.5 | 38.3 | 48.3 | 39.8 | 40.7 |
| Water damage and freezing | 24.0 | 29.0 | 19.6 | 23.4 | 27.6 |
| Fire and lightning | 25.4 | 21.1 | 21.1 | 23.3 | 21.9 |
| Theft | 1.0 | 1.0 | 0.6 | 0.7 | 0.7 |
| All other property damage (3) | 6.5 | 7.2 | 7.6 | 9.8 | 6.9 |
| Liability (4) | 2.5% | 3.3% | 2.8% | 2.9% | 2.1% |
| Bodily injury and property damage | 2.3 | 2.9 | 2.4 | 2.4 | 1.6 |
| Medical payments and other | 0.2 | 0.4 | 0.4 | 0.5 | 0.5 |
| Credit card and other (5) | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 |
| Total | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% |
(1) For homeowners multiple peril policies (HO-2, HO-3, HO-5 and HE-7 for North Carolina). Excludes tenants and condominium owners policies. Excludes Alaska, Texas and Puerto Rico.
(2) First party, i.e., covers damage to policyholder's own property.
(3) Includes vandalism and malicious mischief.
(4) Payments to others for which policyholder is responsible.
(5) Includes coverage for unauthorized use of various cards, forgery, counterfeit money and losses not otherwise classified.
Source: ISO®, a Verisk Analytics® business.
(Weighted average, 2018-2022)
| Cause of loss | Claim frequency (2) | Claim severity (3) |
|---|---|---|
| Property Damage (4) | 5.69 | $15,570 |
| Fire and lightning | 0.24 | 83,991 |
| Water damage and freezing | 1.61 | 13,954 |
| Wind and hail | 2.82 | 13,511 |
| Theft | 0.14 | 5,024 |
| All other (5) | 0.89 | 7,798 |
| Liability (6) | 0.09 | $26,175 |
| Bodily injury and property damage | 0.07 | 31,690 |
| Medical payments and other | 0.03 | 13,081 |
| Credit card and other (7) | (8) | $34,183 |
| Average (property damage and liability), 2018-2022 | 5.79 | $15,747 |
(1) For homeowners multiple peril policies (HO-2, HO-3, HO-5 and HE-7 for North Carolina). Excludes tenants and condominium owners policies. Excludes Alaska, Texas and Puerto Rico.
(2) Claims per 100 house years (policies).
(3) Accident year incurred losses, excluding loss adjustment expenses, i.e., indemnity costs per accident year incurred claims.
(4) First party, i.e., covers damage to policyholder's own property.
(5) Includes vandalism and malicious mischief.
(6) Payments to others for which policyholder is responsible.
(7) Includes coverage for unauthorized use of various cards, forgery, counterfeit money and losses not otherwise classified.
(8) Less than 0.01.
(9) Claim severity for credit card and other is significantly lower than was shown in previous years due to a change in the companies surveyed to produce the data. The new selection of companies use different exclusions which have been applied throughout the five years used in this chart.
Source: ISO®, a Verisk Analytics® business.
Homeowners Insurance Claims Frequency*
*Insurance Information Institute calculations, based on ISO®, a Verisk Analytics® business, data for homeowners insurance claims from 2018-2020 (see table above).
To shed light on inflation, the Bureau of Labor Statistics maintains a consumer price index (CPI) which tracks monthly and annual changes in the average prices paid by urban consumers for a representative basket of goods and services. The Consumer Price Index for All Urban Consumers (CPI-U) represents data for 93 percent of the U.S. population not living in remove rural areas, institutions, or on military bases. The CPI-U rose 4.1 percent in 2023. The cost of motor vehicle insurance for these consumers increased 17.4 percent in 2023 while the cost of used cars and trucks decreased -7.1 percent.
| Used cars and trucks | Tenants and household insurance (3), (4) | Repair of household items (3), (5) | Legal services (6) | Existing single- family homes | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Year | Index | Percent change | Index | Percent change | Index | Percent change | Index | Percent change | Median price ($000) | Percent change |
| 2014 | 149.1 | -0.5% | 141.9 | 4.8% | 212.4 | 2.8% | 318.5 | 2.1% | 208.3 | 5.7% |
| 2015 | 147.1 | -1.3 | 146.4 | 3.2 | 220.1 | 3.6 | 323.6 | 1.6 | 223.9 | 7.5 |
| 2016 | 143.5 | -2.5 | 147.7 | 0.9 | 226.3 | 2.8 | 334.5 | 3.4 | 235.5 | 5.2 |
| 2017 | 138.3 | -3.6 | 148.8 | 0.7 | 239.3 | 5.8 | 346.4 | 3.6 | 248.8 | 5.6 |
| 2018 | 138.4 | 0.1 | 150.7 | 1.3 | 253.7 | 6.0 | 361.2 | 4.3 | 261.6 | 5.1 |
| 2019 | 139.8 | 1.0 | 151.8 | 0.7 | 268.7 | 5.9 | 364.8 | 1.0 | 274.6 | 5.0 |
| 2020 | 144.2 | 3.2 | 151.1 | -0.5 | 270.0 | 0.5 | 368.7 | 1.1 | 300.2 | 9.3 |
| 2021 | 182.6 | 26.6 | 150.7 | -0.3 | N/A | NA | 374.4 | 1.5 | 357.1 | 19.0 |
| 2022 | 205.9 | 12.7 | 150.5 | -0.1 | N/A | NA | 399.4 | 6.7 | 392.8 | 10.0 |
| 2023 | 191.2 | -7.1 | 153.3 | 1.8 | 352.6 | NA | 432.9 | 8.4 | 394.6 | 0.5 |
| Percent change, 2014-2023 | 28.3% | 8.0% | 66.0% | 35.9% | 89.4% | |||||
(1) December 1996=100.
(2) December 1983=100.
(3) December 1997=100.
(4) Only includes insurance covering rental properties.
(5) Includes appliances, reupholstery and inside home maintenance.
(6) December 1986=100.
NA = Data not available
Note: Percent changes are calculated from unrounded data.
Source: U.S. Department of Labor, Bureau of Labor Statistics; National Association of Realtors.
| Year | Homeowners (2) | Percent change | Renters (3) | Percent change |
|---|---|---|---|---|
| 2012 | 1,034 | 5.6% | 187 | (4) |
| 2013 | 1,096 | 6.0 | 188 | 0.5% |
| 2014 | 1,132 | 3.3 | 190 | 1.1 |
| 2015 | 1,173 | 3.6 | 188 | -1.1 |
| 2016 | 1,192 | 1.6 | 185 | -1.6 |
| 2017 | 1,211 | 1.6 | 180 | -2.7 |
| 2018 | 1,249 | 3.1 | 179 | -0.6 |
| 2019 | 1,272 | 1.8 | 174 | -2.8 |
| 2020 | 1,311 | 3.1 | 173 | -0.6 |
| 2021 | 1,411 | 7.6 | 170 | -1.7 |
(1) Includes state funds, residual markets and some wind pools.
(2) Based on the HO-3 homeowner package policy for owner-occupied dwellings, 1 to 4 family units. Provides all risks coverage (except those specifically excluded in the policy) on buildings and broad named-peril coverage on personal property, and is the most common package written.
(3) Based on the HO-4 renters insurance policy for tenants. Includes broad named-peril coverage for the personal property of tenants.
(4) Less than 0.1 percent.
Source: National Association of Insurance Commissioners (NAIC). Further reprint or distribution strictly prohibited without written permission of NAIC.
| Homeowners | Renters | Homeowners | Renters | ||||||
|---|---|---|---|---|---|---|---|---|---|
| State | Average premium (2) | Rank (3) | Average premium (4) | Rank (3) | State | Average premium (2) | Rank (3) | Average premium (4) | Rank (3) |
| Alabama | 1,610 | 12 | 222 | 3 | Montana | 1,471 | 15 | 154 | 31 |
| Alaska | 1,067 | 35 | 184 | 8 | Nebraska | 1,684 | 9 | 141 | 46 |
| Arizona | 917 | 46 | 160 | 25 | Nevada | 863 | 48 | 175 | 14 |
| Arkansas | 1,611 | 11 | 206 | 5 | New Hampshire | 1,090 | 34 | 145 | 42 |
| California (5) | 1,403 | 20 | 177 | 13 | New Jersey | 1,309 | 23 | 151 | 34 |
| Colorado | 1,802 | 6 | 159 | 27 | New Mexico | 1,229 | 30 | 175 | 14 |
| Connecticut | 1,651 | 10 | 171 | 18 | New York | 1,455 | 17 | 164 | 22 |
| Delaware | 988 | 44 | 144 | 44 | North Carolina | 1,192 | 33 | 164 | 22 |
| D.C. | 1,272 | 25 | 150 | 36 | North Dakota | 1,256 | 27 | 114 | 51 |
| Florida | 2,437 | 1 | 175 | 14 | Ohio | 920 | 45 | 160 | 25 |
| Georgia | 1,466 | 16 | 205 | 6 | Oklahoma | 2,155 | 3 | 221 | 4 |
| Hawaii | 1,299 | 24 | 172 | 17 | Oregon | 793 | 50 | 150 | 36 |
| Idaho | 884 | 47 | 146 | 40 | Pennsylvania | 1,014 | 40 | 147 | 39 |
| Illinois | 1,223 | 31 | 154 | 31 | Rhode Island | 1,900 | 5 | 178 | 12 |
| Indiana | 1,058 | 36 | 162 | 24 | South Carolina | 1,432 | 18 | 184 | 8 |
| Iowa | 1,043 | 37 | 135 | 47 | South Dakota | 1,270 | 26 | 117 | 50 |
| Kansas | 1,491 | 14 | 159 | 27 | Tennessee | 1,368 | 21 | 183 | 10 |
| Kentucky | 1,232 | 29 | 156 | 30 | Texas (6) | 2,146 | 4 | 204 | 7 |
| Louisiana | 2,259 | 2 | 243 | 2 | Utah | 831 | 49 | 145 | 42 |
| Maine | 996 | 42 | 146 | 40 | Vermont | 1,025 | 38 | 150 | 36 |
| Maryland | 1,238 | 28 | 152 | 33 | Virginia | 1,199 | 32 | 151 | 34 |
| Massachusetts | 1,712 | 8 | 168 | 21 | Washington | 1,001 | 41 | 159 | 27 |
| Michigan | 993 | 43 | 179 | 11 | West Virginia | 1,016 | 39 | 170 | 20 |
| Minnesota | 1,607 | 13 | 132 | 48 | Wisconsin | 780 | 51 | 127 | 49 |
| Mississippi | 1,766 | 7 | 258 | 1 | Wyoming | 1,432 | 18 | 142 | 45 |
| Missouri | 1,340 | 22 | 171 | 18 | United States | $1,411 | $170 | ||
(1) Includes state funds, residual markets and some wind pools.
(2) Based on the HO-3 homeowner package policy for owner-occupied dwellings, 1 to 4 family units. Provides all risks coverage (except those specifically excluded in the policy) on buildings and broad named-peril coverage on personal property, and is the most common package written.
(3) Ranked from highest to lowest. States with the same premium receive the same rank.
(4) Based on the HO-4 renters insurance policy for tenants. Includes broad named-peril coverage for the personal property of tenants.
(5) Data provided by the California Department of Insurance.
(6) Texas data were obtained from the Texas Department of Insurance.
Note: Average premium=Premiums/exposure per house years. A house year is equal to 365 days of insured coverage for a single dwelling. The NAIC does not rank state average premiums and does not endorse any conclusions drawn from this data.
Source: National Association of Insurance Commissioners (NAIC). Further reprint or distribution strictly prohibited without written permission of NAIC.
| Rank (3) | Most expensive states | Average premium (2) | Rank (3) | Least expensive states | Average premium (2) |
|---|---|---|---|---|---|
| 1 | Florida | $2,437 | 1 | Wisconsin | $780 |
| 2 | Louisiana | 2,259 | 2 | Oregon | 793 |
| 3 | Oklahoma | 2,155 | 3 | Utah | 831 |
| 4 | Texas (4) | 2,146 | 4 | Nevada | 863 |
| 5 | Rhode Island | 1,900 | 5 | Idaho | 884 |
| 6 | Colorado | 1,802 | 6 | Arizona | 917 |
| 7 | Mississippi | 1,766 | 7 | Ohio | 920 |
| 8 | Massachusetts | 1,712 | 8 | Delaware | 988 |
| 9 | Nebraska | 1,684 | 9 | Michigan | 993 |
| 10 | Connecticut | 1,651 | 10 | Maine | 996 |
(1) Includes state funds, residual markets and some wind pools.
(2) Based on the HO-3 homeowner package policy for owner-occupied dwellings, 1 to 4 family units. Provides all risks coverage (except those specifically excluded in the policy) on buildings and broad named-peril coverage on personal property, and is the most common package written.
(3) Ranked from highest to lowest. States with the same premium receive the same rank.
(4) Texas data were obtained from the Texas Department of Insurance.
Note: Average premium=Premiums/exposure per house years. A house year is equal to 365 days of insured coverage for a single dwelling. The NAIC does not rank state average premiums and does not endorse any conclusions drawn from this data.
Source: National Association of Insurance Commissioners (NAIC). Further reprint or distribution strictly prohibited without written permission of NAIC.
| Rank | Group/company | Direct premiums written (1) | Market share (2) |
|---|---|---|---|
| 1 | State Farm | $27,037,940 | 17.8% |
| 2 | Allstate Corp. | 13,551,256 | 8.9 |
| 3 | Liberty Mutual | 10,476,330 | 6.9 |
| 4 | USAA Insurance Group | 10,344,681 | 6.8 |
| 5 | Farmers Insurance Group of Companies | 8,981,110 | 5.9 |
| 6 | Travelers Companies Inc. | 7,569,914 | 5.0 |
| 7 | American Family Insurance Group | 7,010,000 | 4.6 |
| 8 | Nationwide Mutual Group | 4,077,262 | 2.7 |
| 9 | Chubb Ltd. | 3,888,844 | 2.6 |
| 10 | Citizens Property Insurance Corp. | 3,208,945 | 2.1 |
(1) Before reinsurance transactions, includes state funds.
(2) Based on U.S. total, excluding territories.
Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.
| Expense | Percent of premiums |
|---|---|
| Losses and related expenses (2) | |
| Loss and loss adjustment expense (LAE) ratio | 84.5% |
| Incurred losses | 75.5 |
| Defense and cost containment expenses incurred | 1.7 |
| Adjusting and other expenses incurred | 7.3 |
| Operating expenses (3) | |
| Expense ratio | 26.1% |
| Net commissions and brokerage expenses incurred | 11.8 |
| Taxes, licenses and fees | 2.7 |
| Other acquisition and field supervision expenses incurred | 6.6 |
| General expenses incurred | 5.0 |
| Dividends to policyholders (2) | 0.4% |
| Combined ratio after dividends (4) | 110.9% |
(1) After reinsurance transactions.
(2) As a percent of net premiums earned ($119.9 billion in 2023).
(3) As a percent of net premiums written ($128.0 billion in 2023).
(4) Sum of loss and LAE, expense and dividends ratios. Calculated from unrounded data.
Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.
In 2022, 36.1 million Americans experienced an unintentional injury in the home that required aid from a medical professional, according to an analysis by the National Safety Council (NSC). There were 128,800 deaths from this type of injury in 2022, up 0.5 percent from 2021. The overall death rate remained at 38.6 deaths per 100,000 people in 2022, an increase from 28 deaths per 100,000 people in 1912. Poisonings and falls are driving the boom, making up a combined 87 percent of unintentional injury deaths.