Here are excerpts:
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Objective of the report…1
Residual market data …3
Factors Affecting the Cost of Insurance…8
Geographic area, real estate and construction costs…8
Exposure to disasters…8
Table 1: 2019 House-Years by State and Nationwide by Policy Type…15
Table 2: 2019 House-Years by State and Nationwide by Policy Form…19
Table 3: 2019 House Years by State and Nationwide by Amount of Insurance…23
Table 4: 2019 average premium by policy form and amount of insurance
Police forms for home fires and homeowners…31
Table 5: Average 2019 premium by policy form and amount of insurance
Tenant Landlords and Policy Forms for Condominiums/Co-op Units…137
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Purpose of the report
This report provides national and state-specific premium and exposure information for non-commercial home fire insurance and for homeowners home insurance policies. The package policy data for homeowners is for homeowner policy forms (HO-1, HO-2, HO-3, HO-5 and HO-8), tenant policy (HO-4) and the condominium/co-op unit owner’s policy. policy (HO-6). This story describes the data and explains the impact of economic, demographic and natural phenomena on the price of home insurance.
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Table 1 provides exposure data in house-years by policy type. The table shows a national total of 90,414,613.4 house-years. In 2019, exposures to homeowner’s insurance policies accounted for 71.3% of overall exposures nationally. Tenant and condominium policy exposures made up 27.1% of the total, while residential fire exposures made up the remaining 1.6%.
Exposure data for the eight individual policy forms is provided in Table 2. HO-3 accounted for 55.4% of all policy exposures and remains by far the most common policy sold. Figure 1 (next page) shows the percentage distribution of exposures for homeowner policy forms only. Nationwide, 77.7% of these exposures were written on Form HO-3.
Figure 2 shows the percentage distribution of exposures nationwide for tenant and condominium/co-op policy forms. Of these, 73.9% were written on the HO-4 form.
Tables 3A and 3B show national and state exposure data broken down into each of the insurance coverage amount bands. Data on residential fire policies and data from homeowner policy forms are combined in Table 3A, and data from HO-4 and HO-6 forms are combined in Table 3B. Nationwide, in 2019, 57.3% of home fire and homeowners insurance policies were written for insurance coverage amounts between
Tenant and condominium policies do not cover the building; therefore, the exposure distribution for these types of policies is concentrated on significantly lower amounts of insurance. Table 3B shows that 67.1% of exposures to forms HO-4 and HO-6 are concentrated at amounts below
Figure 3 presents a comparison of the home fire risks and policy exposures of the five homeowners by amount of insurance coverage. Residential fire exposures represent 2.2% of total exposures and are more prevalent at insurance coverage amounts below
Figure 4 compares policy forms HO-4 and HO-6 based on coverage amounts. Across the country, Form HO-4 (renters) represents more policies written at lower coverage amounts. At the coverage amounts above
Tables 44 and 5 display the average state premiums for each form of policy. Examination of national average premium data for home fire and homeowner policies reveals some expected results. In general, the average premium increases as the amount of coverage increases for all policy types. Home fire premiums are generally lower than homeowner’s five premiums, reflecting the more limited coverage offered by homeowner’s fire insurance policies compared to homeowner’s packages.
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The report is published on: https://content.naic.org/sites/default/files/publication-hmr-zu-homeowners-report.pdf
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