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Facts + Statistics: Homeowners and renters insurance

Homeowners insurance premiums

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.

Home inventories

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.

Causes of homeowners insurance losses

In 2021, 5.3 percent of insured homes had a claim, according to ISO. Property damage, including theft, accounted for 97.7 percent of homeowners insurance claims in 2021 (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.

Homeowners Insurance Losses, 2017-2021 (1)

(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, 2016-2020.

Source: ISO®, a Verisk Analytics® business.

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Homeowners Insurance Losses By Cause, 2017-2021 (1)

(Percent of losses incurred)

(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. (6) Less than 0.1 percent.

Source: ISO®, a Verisk Analytics® business.

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Average Homeowners Losses, 2017-2021 (1)

(Weighted average, 2017-2021)

(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.

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Homeowners Insurance Claims Frequency*

Each year,

*Insurance Information Institute calculations, based on ISO®, a Verisk Analytics® business, data for homeowners insurance claims from 2017-2021 (see table above).

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Consumer prices

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.

Consumer Price Indices For Insurance And Related Items And Annual Rates Of Change, 2014-2023 (Cont'd)

(Base: 1982-84=100)

(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.

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Premiums for homeowners and renters insurance

Average Premiums for Homeowners and Renters Insurance, 2012-2021 (1)

(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.

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Average Premiums for Homeowners and Renters Insurance by State, 2021 (1)

(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.

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Top 10 Most Expensive And Least Expensive States For Homeowners Insurance Premiums, 2021 (1)

(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.

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Top 10 Writers Of Homeowners Insurance By Direct Premiums Written, 2022

($000)

(1) Before reinsurance transactions, includes state funds. (2) Based on U.S. total, includes territories.

Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.

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Homeowners Insurance Industry Underwriting Expenses, 2022 (1)

(1) After reinsurance transactions. (2) As a percent of net premiums earned ($108.8 billion in 2022). (3) As a percent of net premiums written ($114.9 billion in 2022). (4) Sum of loss and LAE, expense and dividends ratios. Calculated from unrounded numbers.

Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.

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Home injuries

In 2021, 35.9 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 128,200 deaths from this type of injury in 2021, up 13 percent from 2020. The overall death rate rose to 38.6 deaths per 100,000 people in 2021, 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.

Unintentional Home Deaths And Injuries, 2021

Source: National Safety Council estimates based on data from National Center for Health Statistics and state vital statistics departments.

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High-risk markets

A myriad of different programs across the United States provide insurance to owners of property in high-risk areas who may have difficulty obtaining coverage from the standard insurance market. Residual, shared or involuntary market programs make basic insurance coverage more readily available. Today, property insurance for the residual market is provided by Fair Access to Insurance Requirements (FAIR) plans, beach and windstorm plans, and two state-run insurance companies in Florida and Louisiana: Florida’s Citizens Property Insurance Corp. and Louisiana’s Citizens Property Insurance Corp. Established in the late 1960s to ensure the continued provision of insurance in urban areas, FAIR plans often provide property insurance in both urban and coastal areas. Beach and windstorm plans cover predominantly wind-only risks in designated coastal areas. Over the past four decades FAIR and beach and windstorm plans experienced explosive growth both in the number of policies and in exposure value.

Insurance Provided By FAIR Plans, Fiscal Years 2013-2022 (1)

(1) Includes the Texas FAIR Plan; Florida’s Citizens Property Insurance Corporation, which includes FAIR and Beach Plans; the Louisiana Citizens Property Insurance Corporation, which includes FAIR and Beach Plans and premiums written after 2007; and North Carolina after 2010. (2) Exposure is the estimate of the aggregate value of all insurance in force in all FAIR Plans in all lines (except liability, where applicable, and crime) for 12 months ending September through December.

Source: Property Insurance Plans Service Office (PIPSO).

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INSURANCE PROVIDED BY FAIR PLANS BY STATE, FISCAL YEAR 2022 (1)

(1) Excludes the FAIR Plans of Arkansas and Hawaii. (2) Exposure is the estimate of the aggregate value of all insurance in force in all FAIR Plans in all lines (except liability, where applicable, and crime) for 12 months ending September through December. (3) Citizens Property Insurance Corporation, which combined the FAIR and Beach Plans. (4) The Mississippi and Texas FAIR Plans do not offer a commercial policy.

Source: Property Insurance Plans Service Office (PIPSO).

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Renters and homeowners demographics

In 2022, 65.2 percent of housing units were owner occupied and 34.8 percent were renter occupied, according to the latest U.S. Census figures.

The nation's homeowners paid a median of $1,775 monthly housing costs in 2022, compared with $1,300 for renters, according to the latest American Community Survey from the U.S. Census Bureau.

However, renters usually paid a higher percentage of their household income on these costs than did owners, 48.2 percent compared with 27.8 percent of homeowners who spent 30 percent or more of their income on housing costs in 2022. However, renters usually paid a higher percentage of their household income on these costs than did owners, 48.2 percent compared with 27.8 percent of homeowners who spent 30 percent or more of their income on housing costs in 2022.

Percent Of Occupied Housing Units That Are Owner Occupied, 2022

(1) States with the same percentages receive the same rank.

Source: U.S. Department of Commerce, Census Bureau; American Community Survey.

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Percent Of Mortgaged Owners Occupied Units Spending 30 Percent Or More Of Their Income On Monthly Owner Costs, 2022

(1) Percent of mortgaged owner-occupied housing units spending 30 percent or more of household income on selected owner costs such as all mortgage payments (first mortgage, home equity loans, etc.), real estate taxes, property insurance, utilities, fuel and condominium fees if applicable. (2) States with the same percentages receive the same rank.

Source: U.S. Department of Commerce, Census Bureau; American Community Survey.

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Percent Of Renter Occupied Units Spending 30 Percent Or More Of Their Income On Rent And Utilities, 2022

(1) Percent of renter-occupied units spending 30 percent or more on rent and utilities such as electric, gas, water and sewer, and fuel (oil, coal, etc.) if paid by the renter. (2) States with the same percentages receive the same rank.

Source: U.S. Department of Commerce, Census Bureau; American Community Survey.

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