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 97.8 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.

In 2022, 5.5 percent of insured homes experienced a claim, compared with 6.5 percent in 2020.

 

In the five-year period, 2018-2022, 5.8 percent of insured homes had a claim. Wind and hail accounted for the largest share of claims, with 2.8 percent of insured homes having such a loss, followed by water damage and freezing with 1.6 percent of homes having a loss.

Homeowners Insurance Claims Frequency*

Each year,

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.

Premiums for homeowners and renters insurance

Home injuries

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. 

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.

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.

In 2022 West Virginia, Maine, Delaware, and Vermont had the highest percentage of owner-occupied housing units. The District of Columbia had the lowest percentage of owner-occupied units, followed by New York, California, and Nevada.

 

In 2022, Hawaii, California, New Jersey and Florida, and New York had the highest homeownership costs, based on the percentage of homes in which owners spent 30 percent or more of their income on homeowner-ownership related expenses. Ohio, Iowa, West Virginia, and Indiana had the lowest costs, based on the percentage of homes in which owners spent 30 percent of more of their income on homeowner-ownership expenses.

 

Nationwide, 48.2 percent of renters spent at least 30 percent of their household income on rent and utilities in 2022. In 2022 North Dakota, South Dakota, Wyoming and Alaska had the lowest percentage of rental units in which occupants spent 30 percent or more of their income on rent. Florida, Hawaii, California, Nevada and Colorado had the highest percentage.