Homeowners Insurance Statistics

Written By: Stacy Fox on December 16, 2009 One Comment

This article is going to look at some important homeowners insurance statistics. You may be surprised by some of the data shown here.

Two thirds of homes are underinsured. They have 23 percent less coverage than they actually need. And, if something bad were to happen, these homeowners would have to pay the difference out of their own pockets. But it doesn’t have to be this way. For less than an additional $100 a year, most homeowners would have all of the coverage they needed.

So, what kind of costs are we talking about?

Here are some cold hard facts about the actual average costs for various types of insurable damage. Fire damage – $24,153; Wind and hail – $7163; water damage – $5531, and burglary – $2493. These are sums that homeowners would pay a quarter of if they didn’t have the insurance they needed.

One thing that homeowners need adequate insurance for is personal liability if someone were to get injured on their property. That can range from a slip and fall to a dog bite. Medical bills and punitive damages quickly add up. On a typical bodily injury claim, insurance companies pay out $15,854 and another $3055 in medical bills. You don’t want to have to assume those kind of costs yourself.

Here’s some other interesting homeowners insurance statistics. The average insurance premium in 2006 was $809 per year. Texas had the highest price at $1408 (wind and tornado damage is to blame) and South Dakota has the lowest rates at $628.

State Farm is the largest homeowners insurer at 21 percent of the market. Allstate is number 2 and Zurich Insurance Group is number 3.

58 percent of your premium goes to policy payouts, 28 percent to expenses and 9 percent to profits. The final 5 percent goes to taxes.

Those are some basic homeowners insurance statistics that may be of interest to you.

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