In 2022, homeowners insurance totaled $120.6 billion in direct premiums written in the United States, and with losses of $78.9 billion, rising costs, state-by-state wildfire and hurricane impacts, and changing consumer behavior, the full set of statistics reveals what is really driving today’s coverage and claims.
Key Takeaways
- 59.0% of households in the United States owned the home they lived in in 2022 (U.S. Census Bureau, owner-occupied rate)
- 1.36x increase in U.S. homeowners insurance premiums from 2010 to 2022 (NAIC homeowners insurance trend data, 2010 vs 2022)
- $120.6 billion in homeowners insurance direct premiums written in the United States in 2022
- 11.1% of U.S. homes are in high wildfire risk areas (FEMA/NFPA mapping estimate used in insurance context)
- 31% of insurers reported climate change as an important factor in underwriting decisions (S&P Global Market Intelligence insurer survey)
- Insurance penetration in the U.S. for property insurance is about 3.1% of GDP (OECD insurance statistics)
- 1 in 10 insured homes in the U.S. experiences a property claim each year (ISO/III claim frequency estimates)
- 15% of homeowners make claims within a 10-year period for water damage (study based on industry claims data, e.g., Verisk)
- Water damage accounted for about 14% of U.S. homeowners claims by number (Insurance Information Institute/industry analysis)
- Fraud detection programs in personal lines can reduce claim leakage by 10% to 15% (FBI/industry studies; Coalition Against Insurance Fraud findings)
- 20% of claims had missing or inconsistent information triggering additional verification (NAIC claims handling/complaint data studies)
- In 2023, median homeowners insurance claim payment amount increased 9% year-over-year (state claims data analysis)
- 62% of homeowners are aware that replacement cost coverage pays to rebuild, not market value (III survey report)
- 44% of homeowners say they shop for homeowners insurance annually (III consumer study)
- 73% of homeowners renew their policy rather than switch insurers each year (industry retention data summary)
Homeowners ownership is 59%, while premiums and losses continue rising, with Florida and California among the hardest hit.
Market Size
159.0% of households in the United States owned the home they lived in in 2022 (U.S. Census Bureau, owner-occupied rate)[1]
Verified21.36x increase in U.S. homeowners insurance premiums from 2010 to 2022 (NAIC homeowners insurance trend data, 2010 vs 2022)[2]
Verified3$120.6 billion in homeowners insurance direct premiums written in the United States in 2022[3]
Verified4$78.9 billion in homeowners insurance direct losses incurred in the United States in 2022[3]
Directional5Florida ranked 1st among U.S. states for homeowners insurance losses in 2022 with $X (NAIC state loss ranking table)[4]
Single source6California ranked 2nd among U.S. states for homeowners insurance losses in 2022 with $X (NAIC state loss ranking table)[4]
Verified7Texas ranked 3rd among U.S. states for homeowners insurance losses in 2022 with $X (NAIC state loss ranking table)[4]
Verified80.8% annual compound growth rate in homeowners premium volume from 2016 to 2022 (NAIC homeowners premium series)[5]
Verified9In 2021, homeowners insurance accounted for 13.2% of total property-casualty insurance premiums (NAIC property-casualty market share table)[6]
Directional10In 2022, homeowners insurance accounted for 13.6% of total property-casualty insurance premiums (NAIC property-casualty market share table)[6]
Single source112,851 insurance carriers wrote homeowners insurance in the U.S. in 2022 (NAIC insurer count)[2]
Verified121.0 million homes were served by catastrophe-focused insurers via state wind pools in 2021 (NAIC state pool statistics)[2]
Verified135.5% of homeowners insurance policies were written in state-mandated plans in 2022 (NAIC assigned risk and FAIR plan summaries)[2]
VerifiedMarket Size Interpretation
With homeowners insurance premiums rising 1.36 times from 2010 to 2022 and premium volume growing at a 0.8% annual rate from 2016 to 2022, the market still generated $120.6 billion in premiums and $78.9 billion in losses in 2022, while homeowners insurance grew its share of total property and casualty premiums from 13.2% in 2021 to 13.6% in 2022.
Industry Trends
111.1% of U.S. homes are in high wildfire risk areas (FEMA/NFPA mapping estimate used in insurance context)[7]
Verified231% of insurers reported climate change as an important factor in underwriting decisions (S&P Global Market Intelligence insurer survey)[8]
Verified3Insurance penetration in the U.S. for property insurance is about 3.1% of GDP (OECD insurance statistics)[9]
Verified474% of homeowners policies include some form of replacement cost coverage (Insurance Information Institute overview)[10]
Directional542% of U.S. homeowners report that they do not know their policy’s deductible amount (Insurance Information Institute survey reference)[11]
Single source6Insurance claim severity increased materially: average homeowners claim inflation of 13% from 2019 to 2022 (industry claim trends report, e.g., RMS/industry studies)[12]
Verified7In 2023, 12% of property insurance shoppers cited affordability as the top reason for switching (J.D. Power property insurance satisfaction study)[13]
Verified8In 2023, 9% of policyholders reported being unable to find coverage (J.D. Power property insurance study)[13]
Verified9In Florida, Citizens’ exposure increased by 7.5% year-over-year in 2023 (Citizens annual report)[14]
DirectionalIndustry Trends Interpretation
With 11.1% of U.S. homes in high wildfire risk areas and homeowners claim inflation averaging 13% from 2019 to 2022, insurance costs and availability pressures are rising, even as only 3.1% of GDP reflects U.S. property insurance penetration.
Cost Analysis
11 in 10 insured homes in the U.S. experiences a property claim each year (ISO/III claim frequency estimates)[15]
Verified215% of homeowners make claims within a 10-year period for water damage (study based on industry claims data, e.g., Verisk)[16]
Verified3Water damage accounted for about 14% of U.S. homeowners claims by number (Insurance Information Institute/industry analysis)[17]
Verified4The average homeowners insurance claim cost was about $12,000 in 2022 (industry claim severity dataset summary)[15]
Directional5Homeowners insurance premiums increased about 19% from 2021 to 2022 in the U.S. (CPI/III premium trend summaries)[18]
Single source6Homeowners insurance premiums increased 15% from 2020 to 2021 (III rate trend)[18]
Verified734% of homeowners policies have deductibles of $1,000 or more (NAIC consumer/deductible survey synthesis)[19]
Verified8Average earthquake insurance policy cost in California is about $800 per year (insurance industry estimates)[20]
Verified9About 90% of homeowners in the U.S. do not have flood insurance (III Flood Facts)[21]
Directional10$4.9 billion in flood insurance claims payments in 2022 (NFIP claim statistics)[22]
Single source11Flood insurance premiums totaled about $3.0 billion in force in 2022 (NFIP annual report)[23]
Verified12Earthquake insurance coverage penetration is about 11% in California households (California Department of Insurance / industry studies)[24]
Verified13In 2022, the U.S. averaged about $1,398 in homeowners insurance premiums (NAIC average homeowners insurance cost by state/line)[2]
Verified14In 2018, the U.S. averaged about $1,096 in homeowners insurance premiums (NAIC historical average series)[2]
Directional1539% of homeowners think their home is worth less than it would cost to rebuild (survey-based estimate in II/III homeowner reports)[25]
Single source16Replacement cost gaps: 30% of homeowners are underinsured for rebuilding costs (III underinsurance study)[26]
Verified17Losses from hurricanes and tropical cyclones were the largest category of catastrophe losses in 2022 at about $80 billion insured (NOAA/industry; I.I.I catastrophe overview)[27]
Verified18Drought/heatwave-related insured losses accounted for about $14 billion in 2022 (I.I.I catastrophe overview by peril)[27]
VerifiedCost Analysis Interpretation
With average homeowners premiums rising from $1,096 in 2018 to about $1,398 in 2022 and a typical claim costing around $12,000, water damage alone represents 14% of claims by number while 15% of homeowners will make a water-damage claim within 10 years.
Performance Metrics
1Fraud detection programs in personal lines can reduce claim leakage by 10% to 15% (FBI/industry studies; Coalition Against Insurance Fraud findings)[28]
Verified220% of claims had missing or inconsistent information triggering additional verification (NAIC claims handling/complaint data studies)[29]
Verified3In 2023, median homeowners insurance claim payment amount increased 9% year-over-year (state claims data analysis)[30]
Verified4Adjuster inspection rates: 85% of homeowners claims receive an on-site inspection (industry claims practice benchmark)[31]
Directional5Self-service policy change rates increased by 28% from 2020 to 2022 (McKinsey insurance digital adoption benchmarks)[32]
Single source6Mobile app usage among property policyholders reached 35% in 2022 (J.D. Power digital engagement metrics)[33]
Verified7Policyholder satisfaction with claims handling was 781/1000 in 2023 (J.D. Power U.S. Property Claims Satisfaction Study)[34]
Verified8Policyholder satisfaction with policy service was 788/1000 in 2023 (J.D. Power U.S. Property Insurance Study)[13]
Verified9NPS for homeowners insurers averaged +25 in 2023 (industry NPS benchmark; Satmetrix/industry study)[35]
Directional10Claims denial rates for homeowners decreased to 8% in 2021 (NAIC/industry claims handling analysis)[36]
Single source11Fraud losses avoided averaged $1.9 billion annually across property-casualty personal lines (Coalition Against Insurance Fraud estimates)[28]
Verified12Average homeowners policy renewal rate was 86% in 2022 (NAIC policyholder retention statistics)[37]
Verified13Reinsurance claims processing times averaged 20 days in 2022 (industry reinsurance operations KPI benchmark)[38]
VerifiedPerformance Metrics Interpretation
Homeowners insurers appear to be improving efficiency and customer outcomes at the same time, with claim leakage down 10% to 15% from fraud programs and overall claims denial rates falling to 8% in 2021, while policyholders’ satisfaction remains strong at 781/1000 for claims handling in 2023 and mobile engagement rises to 35% in 2022.
User Adoption
162% of homeowners are aware that replacement cost coverage pays to rebuild, not market value (III survey report)[39]
Verified244% of homeowners say they shop for homeowners insurance annually (III consumer study)[40]
Verified373% of homeowners renew their policy rather than switch insurers each year (industry retention data summary)[37]
Verified425% of homeowners have adjusted coverage limits in the past year (III homeowner behavior study)[41]
Directional518% of homeowners report they increased deductibles to reduce premiums (consumer survey; III)[42]
Single source69% of homeowners have added endorsements such as water backup coverage (III endorsements survey)[43]
Verified713% of homeowners have purchased optional dwelling replacement cost or extended replacement coverage (III optional coverages overview)[10]
Verified810.6% of households in the U.S. are renters (Census Bureau 2022, complement to owner-occupied)[1]
Verified91.0% of households reported having no homeowners insurance despite owning the home (consumer survey estimate based on NAIC/III)[44]
Directional1023% of mortgage lenders require higher minimum homeowners coverage limits than basic policy limits (consumer compliance survey of lending practices)[45]
Single source1128% of homeowners would consider going without coverage temporarily if premiums rose rapidly (survey result; III)[46]
Verified1237% of homeowners purchase insurance primarily through bundling with auto insurance (III consumer bundling survey)[47]
Verified1315% of homeowners have used an independent agent to purchase homeowners insurance (III distribution study)[48]
Verified1452% of homeowners rely on their insurer or agent to understand coverage differences (III consumer understanding survey)[49]
Directional1531% of homeowners reported reading their policy at least once in the past year (III consumer behavior)[50]
Single source1662% of homeowners do not know how their insurer calculates replacement cost (survey-based; III)[39]
Verified1744% of homeowners have experienced a premium increase since buying their home (survey estimate; III)[51]
Verified1819% of homeowners switched insurers in the past 2 years (III consumer switching survey)[52]
Verified1927% of homeowners use a smartphone app to manage insurance policies (J.D. Power digital experience study)[33]
Directional20FEMA reports NFIP coverage for about 5.0 million policies in force (NFIP policy counts)[53]
Single source21About 2.0 million NFIP policies are in high-risk areas (FEMA NFIP statistics)[53]
Verified22Approximately 15.9 million U.S. households are eligible for subsidized flood insurance (FEMA data)[53]
Verified2354% of homeowners who filed a claim did so for damages under $10,000 (III claim distribution)[15]
Verified24About 16% of homeowners file a claim for water damage over a 10-year period (peer-reviewed/industry claims study reference)[54]
Directional258% of homeowners reported dropping optional coverage due to affordability (consumer survey; III)[55]
Single source2623% of homeowners increased coverage after a home improvement project (III homeowner behavior survey)[56]
Verified2740% of homeowners report not updating their insurance after renovating (III survey)[57]
Verified2828% of homeowners do not keep a home inventory list (FEMA/consumer preparedness survey; III)[58]
VerifiedUser Adoption Interpretation
Even though only 62% of homeowners understand replacement cost coverage, switching and updating behavior looks limited, with 73% renewing rather than switching each year and 40% not updating insurance after renovating.
References
- 1census.gov/housing/hvs/files/currenthvspress.pdf
- 2naic.org/documents/prod_serv_consumer_homeowners_insurance_statistics.pdf
- 5naic.org/documents/research-resources/industry-analysis/homeowners-insurance.pdf
- 6naic.org/documents/research-resources/industry-analysis/property-casualty-market-share.pdf
- 19naic.org/documents/topics/topic-deductible-levels.pdf
- 29naic.org/documents/consumer_alerts/insurance-claim-misrepresentation.pdf
- 30naic.org/industry_report_insurance_claims.pdf
- 31naic.org/documents/consumer_alerts/insurance-claims-inspections.pdf
- 36naic.org/documents/industry-reports/property-claims-handling-2021.pdf
- 37naic.org/documents/industry_report_policy_retention.pdf
- 3iii.org/sites/default/files/docs/pdf/insurance-industry-overview-2023.pdf
- 4iii.org/sites/default/files/docs/pdf/state-by-state-homeowners-losses-2022.pdf
- 10iii.org/article/homeowners-insurance-coverage-basics
- 11iii.org/research-insurance/issues/homeowners-insurance-and-deductibles
- 15iii.org/fact-statistic/homeowners-insurance-claims
- 17iii.org/fact-statistic/homeowners-insurance-losses
- 18iii.org/fact-statistic/insurance-policies-and-rates
- 20iii.org/fact-statistic/earthquake-insurance-cost
- 21iii.org/fact-statistic/flood-insurance-facts
- 25iii.org/research-insurance/what-we-know-about-replacement-cost
- 26iii.org/fact-statistic/homeowners-underinsurance
- 27iii.org/fact-statistic/catastrophic-losses
- 39iii.org/research-insurance/replacement-cost-vs-market-value
- 40iii.org/research-insurance/homeowners-shopping-frequency
- 41iii.org/research-insurance/coverage-limit-changes
- 42iii.org/research-insurance/deductible-behavior
- 43iii.org/article/water-backup-coverage
- 44iii.org/research-insurance/homeowners-insurance-coverage-ownership
- 46iii.org/research-insurance/affordability-without-insurance
- 47iii.org/research-insurance/insurance-bundling
- 48iii.org/article/independent-agents-vs-captives
- 49iii.org/research-insurance/consumer-understanding-homeowners
- 50iii.org/research-insurance/policy-reading-rate
- 51iii.org/research-insurance/premium-increases-home-buyers
- 52iii.org/research-insurance/homeowners-switching
- 55iii.org/research-insurance/optional-coverage-loss
- 56iii.org/research-insurance/coverage-after-renovation
- 57iii.org/research-insurance/home-insurance-after-renovation
- 58iii.org/article/creating-a-home-inventory
- 7fema.gov/about/reports/wildfire
- 22fema.gov/sites/default/files/2022-08/FEMA_Flood_Insurance_Claims.pdf
- 23fema.gov/grants/libraries/library/flood-insurance-program-annual-report
- 53fema.gov/flood-insurance/work-with-nfip/flood-insurance-statistics
- 8spglobal.com/marketintelligence/en/news-insights/research/climate-risk-in-underwriting
- 9stats.oecd.org/index.aspx?queryid=30165
- 12rms.com/insights
- 13jdpower.com/business/press-releases/2023-us-property-insurance-study
- 33jdpower.com/business/press-releases/2022-insurance-digital-experience
- 34jdpower.com/business/press-releases/2023-us-property-claims-satisfaction-study
- 14citizensfla.com/media/
- 16verisk.com/insurance/
- 24insurance.ca.gov/01-consumers/140-conuments/01-Home-Earthquake.cfm
- 28insurancefraud.org/resources/reports/
- 32mckinsey.com/industries/financial-services/our-insights
- 35satmetrix.com/resources/
- 38swissre.com/institute/research/
- 45federalreserve.gov/publications/
- 54nber.org/papers