GITNUX REPORT 2024

Key Statistics and Insights on the Home Insurance Industry Revealed

Inside the Home Insurance Industry: Premiums, Claims, and Market Trends Revealed in New Report.

Author: Jannik Lindner

First published: 7/17/2024

Statistic 1

Water damage claims are the second most frequent type of homeowners insurance claim

Statistic 2

The average water damage claim costs $10,900

Statistic 3

Wind and hail damage is the most common cause of homeowners insurance claims

Statistic 4

The average wind and hail damage claim costs $11,200

Statistic 5

Fire and lightning damage claims are the most expensive, with an average cost of $79,785

Statistic 6

About 1 in 20 insured homes has a claim each year

Statistic 7

The average homeowners insurance claim is about $13,600

Statistic 8

The home insurance industry paid $68 billion in property losses in 2020

Statistic 9

Dog-related injury claims cost the industry $854 million in 2020

Statistic 10

The average dog bite claim costs $50,245

Statistic 11

About 95% of homeowners insurance claims are for property damage

Statistic 12

Liability claims account for about 5% of homeowners insurance claims

Statistic 13

The average liability claim costs $30,324

Statistic 14

The typical homeowners policy covers personal property at 50-70% of the insurance on the structure

Statistic 15

Most homeowners policies provide additional living expenses coverage of about 20% of the dwelling coverage

Statistic 16

The standard homeowners policy provides liability protection of at least $100,000

Statistic 17

The home insurance industry employs about 2.9 million people in the US

Statistic 18

There are approximately 5,929 home insurance companies in the US

Statistic 19

The home insurance industry's combined ratio was 106.4% in 2020

Statistic 20

The home insurance industry's net income after taxes was $60.1 billion in 2020

Statistic 21

The home insurance industry's return on average net worth was 6.9% in 2020

Statistic 22

The home insurance industry's net premiums written were $104.1 billion in 2020

Statistic 23

The home insurance industry's net premiums earned were $102.3 billion in 2020

Statistic 24

The home insurance industry's incurred losses were $75.9 billion in 2020

Statistic 25

The home insurance industry's loss ratio was 74.2% in 2020

Statistic 26

The home insurance industry's expense ratio was 27.2% in 2020

Statistic 27

The home insurance industry's policyholder surplus was $914.3 billion in 2020

Statistic 28

The home insurance industry's direct premiums written grew by 5.6% in 2020

Statistic 29

The home insurance industry's net investment income was $54.6 billion in 2020

Statistic 30

The home insurance industry's total capital gains were $34.1 billion in 2020

Statistic 31

The home insurance industry's total assets were $2.1 trillion in 2020

Statistic 32

The home insurance industry's total liabilities were $1.2 trillion in 2020

Statistic 33

The home insurance industry paid $35.8 billion in taxes in 2020

Statistic 34

The US home insurance market is expected to grow at a CAGR of 6.8% from 2021 to 2028

Statistic 35

93% of homeowners in the US have homeowners insurance

Statistic 36

Only 12% of US homeowners have flood insurance

Statistic 37

About 85% of homeowners insurance policies are for single-family homes

Statistic 38

Condominiums account for about 6% of homeowners insurance policies

Statistic 39

Mobile homes account for about 3% of homeowners insurance policies

Statistic 40

Only 30% of homeowners in high-risk flood areas have flood insurance

Statistic 41

Only 10% of California homeowners have earthquake insurance

Statistic 42

About 95% of homeowners have personal property coverage in their policies

Statistic 43

State Farm is the largest home insurance provider in the US with a 17.9% market share

Statistic 44

Allstate is the second-largest home insurance provider with a 8.4% market share

Statistic 45

USAA is the third-largest home insurance provider with a 6.7% market share

Statistic 46

The top 10 home insurance companies control about 72% of the market

Statistic 47

The US home insurance market size was valued at $104.1 billion in 2020

Statistic 48

67% of homeowners are underinsured

Statistic 49

About 30% of homeowners don't know how much their home is insured for

Statistic 50

64% of homes in the US are undervalued by 19% on average

Statistic 51

Only 18% of homeowners shop around for new insurance each year

Statistic 52

About 40% of homeowners believe they have flood insurance when they don't

Statistic 53

The average cost to raise a home one foot to reduce flood risk is $30,000

Statistic 54

The average annual homeowners insurance premium in the US is $1,312

Statistic 55

Florida has the highest average annual homeowners insurance premium at $3,643

Statistic 56

Utah has the lowest average annual homeowners insurance premium at $692

Statistic 57

Bundling home and auto insurance can save homeowners an average of 16% on their premiums

Statistic 58

The average flood insurance premium is $700 per year

Statistic 59

Home insurance premiums have increased by 47% over the past 10 years

Statistic 60

The average cost of homeowners insurance has increased by 59% since 2009

Statistic 61

The average homeowners insurance deductible is $1,000

Statistic 62

About 60% of homeowners have a deductible between $500 and $1,000

Statistic 63

The home insurance industry's direct written premiums for earthquake coverage were $3.6 billion in 2020

Statistic 64

The average earthquake insurance premium in California is $3.54 per $1,000 of coverage

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Summary

  • The average annual homeowners insurance premium in the US is $1,312
  • Florida has the highest average annual homeowners insurance premium at $3,643
  • Utah has the lowest average annual homeowners insurance premium at $692
  • 93% of homeowners in the US have homeowners insurance
  • The US home insurance market size was valued at $104.1 billion in 2020
  • The US home insurance market is expected to grow at a CAGR of 6.8% from 2021 to 2028
  • Water damage claims are the second most frequent type of homeowners insurance claim
  • The average water damage claim costs $10,900
  • Wind and hail damage is the most common cause of homeowners insurance claims
  • The average wind and hail damage claim costs $11,200
  • Fire and lightning damage claims are the most expensive, with an average cost of $79,785
  • State Farm is the largest home insurance provider in the US with a 17.9% market share
  • Allstate is the second-largest home insurance provider with a 8.4% market share
  • USAA is the third-largest home insurance provider with a 6.7% market share
  • The top 10 home insurance companies control about 72% of the market

Step right up and join the thrilling world of home insurance – where the average annual premium dances between $692 in Utah and a heart-stopping $3,643 in Florida, creating a symphony of stats that might just make your head spin faster than a Florida hurricane! With a market size of $104.1 billion and State Farm leading the pack at 17.9% market share, its a wild ride of water damage claims, wind-whipped premiums, and fire-fueled averages. So grab your policy, buckle up, and get ready to dive into the murky waters of insuring your slice of the American dream!

Claims

  • Water damage claims are the second most frequent type of homeowners insurance claim
  • The average water damage claim costs $10,900
  • Wind and hail damage is the most common cause of homeowners insurance claims
  • The average wind and hail damage claim costs $11,200
  • Fire and lightning damage claims are the most expensive, with an average cost of $79,785
  • About 1 in 20 insured homes has a claim each year
  • The average homeowners insurance claim is about $13,600
  • The home insurance industry paid $68 billion in property losses in 2020
  • Dog-related injury claims cost the industry $854 million in 2020
  • The average dog bite claim costs $50,245
  • About 95% of homeowners insurance claims are for property damage
  • Liability claims account for about 5% of homeowners insurance claims
  • The average liability claim costs $30,324

Interpretation

In an insurance landscape where water damage reigns as the second most popular troublemaker, with wind and hail playing tug-of-war for the top spot, it's clear that our humble abodes are under constant siege by nature's elements. Fire and lightning, the high-rolling troublemakers of the pack, gracefully dance to the sound of a $79,785 price tag. With dog-related drama costing the industry a hefty $854 million tail wag in 2020, it's no surprise that homeowner insurance claims are as varied as a box of chocolates - with liability claims, adding a dash of legal drama in the mix, and property claims standing firm at the forefront. In this high-stakes game, the only certainty is the need for a robust policy to weather any storm that may come knocking on your door.

Coverage

  • The typical homeowners policy covers personal property at 50-70% of the insurance on the structure
  • Most homeowners policies provide additional living expenses coverage of about 20% of the dwelling coverage
  • The standard homeowners policy provides liability protection of at least $100,000

Interpretation

In the often-confusing world of home insurance, the statistics speak volumes about the delicate balance between protection and practicality. It seems that homeowners are unwittingly playing a game of coverage percentages, hoping to strike the elusive jackpot of adequate safeguarding without breaking the bank. With personal property coverage set at 50-70% of the structure insurance, one can almost hear the collective sigh of relief or the frantic rummaging through receipts depending on where the needle lands on that scale. And let's not forget the tantalizing promise of up to 20% of your dwelling coverage allocated for those glamorous hotel stays should disaster strike, as if trying out life as a nomad was on everyone's bucket list. And of course, the pièce de résistance, liability protection of $100,000, a reassuring figure until you start picturing worst-case scenarios involving rogue lawn mowers and overly litigious neighbors. The home insurance industry, where the numbers tell a story of security, uncertainty, and perhaps just a touch of absurdity.

Industry Overview

  • The home insurance industry employs about 2.9 million people in the US
  • There are approximately 5,929 home insurance companies in the US

Interpretation

The home insurance industry in the US is a massive ecosystem, with nearly 3 million individuals diligently working to protect American homes. With close to 6,000 insurance companies vying for a slice of the market, it's a fierce and competitive industry. From calculating risk to processing claims, these millions of dedicated professionals are the unsung heroes ensuring that the roof over your head stays secure, no matter what storms may come your way.

Industry Performance

  • The home insurance industry's combined ratio was 106.4% in 2020
  • The home insurance industry's net income after taxes was $60.1 billion in 2020
  • The home insurance industry's return on average net worth was 6.9% in 2020
  • The home insurance industry's net premiums written were $104.1 billion in 2020
  • The home insurance industry's net premiums earned were $102.3 billion in 2020
  • The home insurance industry's incurred losses were $75.9 billion in 2020
  • The home insurance industry's loss ratio was 74.2% in 2020
  • The home insurance industry's expense ratio was 27.2% in 2020
  • The home insurance industry's policyholder surplus was $914.3 billion in 2020
  • The home insurance industry's direct premiums written grew by 5.6% in 2020
  • The home insurance industry's net investment income was $54.6 billion in 2020
  • The home insurance industry's total capital gains were $34.1 billion in 2020
  • The home insurance industry's total assets were $2.1 trillion in 2020
  • The home insurance industry's total liabilities were $1.2 trillion in 2020
  • The home insurance industry paid $35.8 billion in taxes in 2020

Interpretation

In a balancing act that would make a tightrope walker jealous, the home insurance industry managed to pull off a performance in 2020 that was both precarious and profitable. With a combined ratio tipping slightly over 100%, net income after taxes reaching a hefty $60.1 billion, and a return on average net worth hitting a respectable 6.9%, it's clear that the industry navigated through a storm of incurred losses and expenses with finesse. As they continue to juggle growth in net premiums and investment income, it seems the home insurance industry has mastered the art of balancing risk and reward atop a towering stack of assets and liabilities. It's a high-stakes game where every dollar counts, and in the end, it's not just the policyholders who come out on top, but the bottom line as well.

Market Growth

  • The US home insurance market is expected to grow at a CAGR of 6.8% from 2021 to 2028

Interpretation

Looks like the home insurance industry is building a solid foundation for growth, with a projected CAGR of 6.8% paving the way for a sturdy structure through 2028. This upward trend indicates that Americans are not only safeguarding their homes against unforeseen hazards but also investing in protection for the long haul. With such steady growth, it seems like the home insurance market is ensuring that no house is left without a safety net in an unpredictable world.

Market Penetration

  • 93% of homeowners in the US have homeowners insurance
  • Only 12% of US homeowners have flood insurance
  • About 85% of homeowners insurance policies are for single-family homes
  • Condominiums account for about 6% of homeowners insurance policies
  • Mobile homes account for about 3% of homeowners insurance policies
  • Only 30% of homeowners in high-risk flood areas have flood insurance
  • Only 10% of California homeowners have earthquake insurance
  • About 95% of homeowners have personal property coverage in their policies

Interpretation

In a nation where 93% of homeowners are savvy enough to protect their castle with homeowners insurance, it seems a little ironic that only 12% think to safeguard against unexpected floods – perhaps they're waiting for their homes to sprout gills. And while 85% of policies are for the classic American single-family abode, it's clear that some homeowners prefer a little more communal living, with condos sneaking in at 6%. Mobile homes, on the other hand, make up just 3% of policies, likely because they're always on the move, too busy for insurance paperwork. Surprisingly, only 30% of those in flood-prone areas are floating along with flood insurance, possibly banking on a "rain check." Meanwhile, earthquake insurance is about as rare as finding a decent avocado toast in California, with just 10% bothering to brace for the ground's whims. But fear not, as 95% of us have our back-up plans covered with personal property protection – just in case our homes decide to pull a disappearing act.

Market Share

  • State Farm is the largest home insurance provider in the US with a 17.9% market share
  • Allstate is the second-largest home insurance provider with a 8.4% market share
  • USAA is the third-largest home insurance provider with a 6.7% market share
  • The top 10 home insurance companies control about 72% of the market

Interpretation

The Home Insurance Industry is like a high-stakes game of Monopoly, with State Farm sitting comfortably as the iron-fisted landlord controlling nearly 18% of the board. Allstate may have hotels on Park Place, but they're still playing catch-up at the second spot with 8.4% of the market. And USAA, holding their own like a savvy player passing "Go," rounds out the top three with a respectable 6.7%. With the top 10 companies collectively sitting on 72% of the properties, it's clear that in this game of risk and reward, only a few hold the keys to the kingdom.

Market Size

  • The US home insurance market size was valued at $104.1 billion in 2020

Interpretation

In a world where the only certainty seems to be change, the US home insurance industry stands as a steadfast fortress of protection, with its market size valiantly reaching $104.1 billion in 2020. This impressive figure is a testament to the importance people place on safeguarding their homes against the unpredictable whims of fate, whether it be a mischievous kitchen fire or a sly leak from above. So, as homeowners navigate the treacherous waters of unforeseen risks, they can find solace in the reassuring hug of the home insurance industry, a sturdy shoulder to lean on in times of turmoil.

Market Trends

  • 67% of homeowners are underinsured
  • About 30% of homeowners don't know how much their home is insured for
  • 64% of homes in the US are undervalued by 19% on average
  • Only 18% of homeowners shop around for new insurance each year
  • About 40% of homeowners believe they have flood insurance when they don't
  • The average cost to raise a home one foot to reduce flood risk is $30,000

Interpretation

The statistics paint a picture of a precarious situation in the home insurance industry, where ignorance and complacency seem to reign supreme. With the majority of homeowners underinsured, undervalued, and uninformed about their policies, it's no wonder that only a mere 18% bother to shop around for better options. The alarming misconception that flood insurance is included in standard policies adds to the mix, with the costly truth being that raising a home to mitigate flood risk comes with a hefty price tag. It's time for homeowners to wake up and smell the policy fine print, lest they find themselves drowning in a sea of regret when disaster strikes.

Premium Rates

  • The average annual homeowners insurance premium in the US is $1,312
  • Florida has the highest average annual homeowners insurance premium at $3,643
  • Utah has the lowest average annual homeowners insurance premium at $692
  • Bundling home and auto insurance can save homeowners an average of 16% on their premiums
  • The average flood insurance premium is $700 per year
  • Home insurance premiums have increased by 47% over the past 10 years
  • The average cost of homeowners insurance has increased by 59% since 2009
  • The average homeowners insurance deductible is $1,000
  • About 60% of homeowners have a deductible between $500 and $1,000
  • The home insurance industry's direct written premiums for earthquake coverage were $3.6 billion in 2020
  • The average earthquake insurance premium in California is $3.54 per $1,000 of coverage

Interpretation

In the wild world of homeowners insurance premiums, it seems like the price tags are as fluctuating as the weather in Florida. With rates ranging from the budget-friendly Utah to the lavish premiums in the Sunshine State, homeowners are left juggling options faster than a hot potato. However, there's hope on the horizon for those looking to save a buck or two by bundling home and auto insurance – a notion as trendy as avocado toast in the finance world. And let's not forget about the flood and earthquake insurance side shows: with an average flood premium of $700 and earthquake direct written premiums hitting $3.6 billion, homeowners might need a magic wand instead of an umbrella to stay afloat. So buckle up your deductibles and hold on to your wallets, it's a bumpy ride in the land of home insurance.

References