Data for 2019′ – InsuranceNewsNet

WASHINGTON, June 11 (TNSrep) — The National Association of Insurance Commissioners released a 196-page report titled “Dwelling, Fire, Homeowners Owner-Occupied, and Homeowners Tenant and Condominium/Cooperative Unit Owner’s Insurance Report: Data for 2019.”

Here are excerpts:

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Contents

Objective of the report…1

Data…1

Data limits…2

Residual market data …3

Forms/policy types…3

Data Analysis…4

Factors Affecting the Cost of Insurance…8

Geographic area, real estate and construction costs…8

Exposure to disasters…8

Mold Damage…12

Terrorism…12

Other Variables…13

Summary…14

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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Data analysis

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.

Omitted digit

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 $50,000 and $300,000.

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 $32,000and 89.4% of these policies offer less than $75,000 In front page.

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 $50,000. In less than $50,000 range, residential fire exposures make up 51.1% of the total, then drop to 32.9% at insurance amounts of $50,000 to $74,999. At the coverage amounts above $75,000residential fire exposures do not represent more than 15.0% of the total for each range.

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 $44,000the majority of exhibits are listed on Form HO-6 (condo/co-op).

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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