Owning a home is a significant investment, so protecting it with home insurance is vital. A comprehensive policy safeguards your finances if your home and personal belongings are damaged or destroyed due to covered events like fire, break-ins, or severe storms. As of 2023, 88% of homeowners have active insurance policies.
Home Insurance Claims Statistics
Understanding the frequency and causes of home insurance claims highlights the importance of adequate coverage. Here are some key statistics:
- Frequency of Claims: In 2021, 5.3% of insured homes filed a claim.
- Preparedness: Only 47% of homeowners had an inventory of their belongings.
- Impact of Weather: 57% of U.S. adults reported costs from extreme weather over the past decade, particularly in the Southern U.S. (63%).
- Average Payouts: Between 2017 and 2021, the average property damage claim was $15,091, with fire and lightning claims averaging $83,519.
- Liability Claims: Although rare (2.3% of claims), liability claims had an average payout of $25,323.
Common Causes of Home Insurance Claims
Property damage is the most frequent cause of home insurance claims. The following table shows the percentage of various property claims from 2017 to 2021:
| Cause of Property Loss | 2017 | 2018 | 2019 | 2020 | 2021 |
| Wind and hail | 48.0% | 39.5% | 38.3% | 47.8% | 39.4% |
| Fire and lightning | 26.2% | 26.0% | 21.5% | 21.9% | 24.8% |
| Water damage and freezing | 18.0% | 24.5% | 29.0% | 19.9% | 23.5% |
| Theft | 1.0% | 1.0% | 1.0% | 0.6% | 0.7% |
| All other property damage | 4.6% | 6.5% | 7.1% | 7.4% | 9.4% |
Home insurance protects one’s investment against common claims like wind and hail, fire and lightning, water damage, and theft. Staying informed about these statistics helps homeowners understand the risks and ensure they have the appropriate coverage.
