10 Things to Know About Homeowners

1. Preliminary figures compiled for homeowners show that insurance companies increased their rates by an average of 2.9 percent nationwide in 2014, while renters insurance rates were up 2.3 percent and condominium insurance rates rose 2.4 percent. This is a reduction from 2013 figures, which were 5.7 percent for homeowners, 2.9 percent for renters and 3.4 percent for condominiums. —Perr & Knight’s RateWatch
2. The five states with the highest overall increases in 2014 for homeowners insurance were Nebraska at 8.1 percent, Montana at 7.5 percent, Kansas at 6.9 percent, and Oklahoma and Texas at 6.1 percent. Three states, California, Florida, and Hawaii, experienced overall decreases in homeowner insurance rates in 2014 of -0.3 percent, -0.6 percent and -0.2 percent, respectively. —Perr & Knight’s RateWatch
3. Florida, Louisiana and Texas are the most expensive states to buy homeowners insurance. Utah, Oregon and Idaho are the least expensive. —National Association of Insurance Commissioners, 2012 data.
4. The cost of homeowners insurance claims has been increasing at twice the rate of inflation despite significant declines in recent years. —Insurance Research Council (IRC), “Trends in Homeowners Insurance Claims, 2015 Edition”
5. The average claim payment per insured home countrywide rose from $229 in 1997 to $625 in 2011, before falling to $442 in 2013. Even with the recent decline, average claim payments per insured home have increased at an average annualized rate of 5.0 percent since 1997. —Insurance Research Council (IRC), “Trends in Homeowners Insurance Claims, 2015 Edition”
6. The top 10 writers of U.S. homeowners insurance by direct premiums written in 2013 include: 1. State Farm Mutual Automobile Insurance; 2. Allstate Corp.; 3. Liberty Mutual; 4. Farmers Insurance Group of Cos.; 5. USAA Insurance Group; 6. Travelers Cos. Inc.; 7. Nationwide Mutual Group; 8. American Family Mutual; 9. Chubb Corp.; 10. Citizens Property Insurance Corp. —SNL Financial
7. Homeowners claims related to wind or hail are the most frequent; the costliest are related to fire, lightning or debris removal. —Insurance Information Institute/ISO
8. About one in 15 insured homes have a claim each year. —Insurance Information Institute/ISO
9. Homeowners with poor credit pay 91 percent more for homeowners’ insurance than people with excellent credit. Homeowners with median credit pay 29 percent more than those with excellent credit. —insuranceQuotes.com
10. Gen Y customers – or Millennials – who comprise the largest group of homebuyers and renters in the U.S., are more critical of their insurance experiences than any other group. —J.D. Power 2014 U.S. Household Insurance Study