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CAUSES OF HOMEOWNERS INSURANCE LOSSES

In 2010, about 6 percent of insured homes had a claim, according to ISO. About 97 percent of those claims were for property damage, including theft. Changes in the percentage of each type of homeowners loss from one year to another are partially influenced by large fluctuations in the number and severity of weather-related events such as hurricanes and winter storms. There are two ways of looking at losses: by the average number of claims filed per 100 policies (frequency) and by the average amount paid for each claim (severity). The loss category “water damage and freezing” includes damage caused by mold, if covered. Every state except Arkansas, New York, North Carolina and Virginia has adopted an ISO mold limitation for homeowners insurance coverage, which allows insurers to exclude the coverage unless the condition results from a covered peril.

Jewelry was the top claims category under homeowners policies in 2011, based on the dollar value of contents claims of about 300 insurers analyzed and tracked by inventory services firm, Enservio. The firm’s Contents Claims Index (CCI) includes items that are damaged, lost or stolen. Enservio found that jewelry was also the most frequently claimed item.

SINKHOLE CLAIMS

In March 2013 an entire house fell into a huge sinkhole in a suburb of Tampa, Florida, garnering national attention. Although such large, sudden and destructive sinkholes are relatively rare, thousands of small sinkholes appear in the U.S. each year. The most damage from sinkholes occurs in Florida, Texas, Alabama, Missouri, Kentucky, Tennessee and Pennsylvania, according to the U.S. Geological Survey. Most homeowners insurance policies exclude coverage for sinkhole damage. However, homeowners insurance companies in Florida and Tennessee are required to offer the coverage. In Florida catastrophic ground cover collapse is mandatory; comprehensive sinkhole coverage is optional. (Note: For information on the Florida law see http://www.insuringflorida.org/articles/sinkholes.html. For statistics on Florida sinkholes see http://www.floir.com/sections/pandc/sinkholepage.aspx).

 

 

CONTENTS CLAIM INDEX, HOMEOWERS INSURANCE, 2011 (1)
Category Percent of total claims
Jewelry 17%
Electronics 13
Furniture 11
Apparel 11
Home goods 9
Tools 4
Appliances 4
Sporting goods 3
Books and magazines 3
Beds and matresses 2

(1) Top contents categories as compiled from homeowners claims filed with insurers. Ranked by dollar value as a percent of total claims. Dollar value is based on the cost to replace items that are damaged, lost or stolen. The Index includes 300 insurers.

Source: Enservio.

 

  • Jewelry losses were the top claims category based on the value of homeowners contents claims, according to inventory services firm, Enservio.
  • Jewelry was also the top item, based on the number of claims filed.

 

 

HOMEOWNERS LOSSES RANKED BY CLAIMS SEVERITY (AVERAGE CLAIM), 2006-2010 (1)
(Weighted average, 2006-2010)
HOMEOWNERS LOSSES RANKED BY CLAIMS SEVERITY (AVERAGE CLAIM), 2006-2010 (1)

(1) For homeowners multiple peril policies. Excludes tenants and condominium owners policies. Accident year incurred losses, excluding loss adjustment expenses, i.e., indemnity costs per accident year incurred claims.
(2) Includes coverage for unauthorized use of various cards, forgery, counterfeit money and losses not otherwise classified.
(3) Includes vandalism and malicious mischief.

Source: ISO, a Verisk Analytics company.

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HOMEOWNERS LOSSES RANKED BY CLAIMS FREQUENCY, 2006-2010 (1)
(Weighted average, 2006-2010)
HOMEOWNERS LOSSES RANKED BY CLAIMS FREQUENCY, 2006-2010 (1)

(1) Claims per 100 house years (policies). For homeowners multiple peril policies. Excludes tenants and condominium owners policies.
(2) Includes vandalism and malicious mischief.
(3) Includes coverage for unauthorized use of various cards, forgery, counterfeit money and losses not otherwise classified.

Source: ISO, a Verisk Analytics company.

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HOMEOWNERS INSURANCE LOSSES BY CAUSE, 2006-2010 (1)
(Percent of losses incurred)
Cause of loss 2006 2007 2008 2009 2010
Property damage 93.12% 93.01% 94.93% 95.44% 96.74%
Fire, lightning and debris removal 32.33 38.77 28.05 27.86 27.42
Wind and hail 28.51 17.61 33.60 30.82 33.54
Water damage and freezing 19.74 24.03 22.31 24.72 22.31
Theft 3.33 3.37 3.06 3.30 3.15
All other property damage (2) 9.20 9.23 7.91 8.74 10.31
Liability 6.80% 6.92% 4.99% 4.47% 3.16%
Bodily injury and property damage 6.55 6.69 4.79 4.22 2.95
Medical payments and other 0.25 0.23 0.20 0.25 0.22
Credit card and other (3) 0.08% 0.07% 0.08% 0.09% 0.09%
Total
100.00% 100.00% 100.00% 100.00% 100.00%

(1) For homeowners multiple peril policies. Excludes tenants and condominium owners policies.
(2) Includes vandalism and malicious mischief.
(3) Includes coverage for unauthorized use of various cards, forgery, counterfeit money and losses not otherwise classified.

Source: ISO, a Verisk Analytics company.

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HOMEOWNERS INSURANCE LOSSES, 2006-2010 (1)
Total homeowners
losses
Total homeowners
losses
Year Claim
frequency (2)
Claim
severity (3)
Claim
frequency (2)
Claim
severity (3)
2006 4.98 $7,293 2009 5.85 $8,584
2007 4.59 8,668 2010 6.33 8,438
2008 6.60 7,967 Average (4) 5.69 8,203

(1) For homeowners multiple peril policies. Excludes tenants and condominium policies.
(2) Claims per 100 house years (policies).
(3) Average amount paid per claim; based on accident year incurred losses, excluding loss adjustment expenses, i.e., indemnity costs per accident year incurred claims.
(4) Weighted average, 2006-2010.

Source: ISO, a Verisk Analytics company.

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  • About six out of every 100 insured homes experienced a claim in 2010.

 

 

AVERAGE HOMEOWNERS LOSSES, 2006-2010 (1)
(Weighted average, 2006-2010)
Cause of loss Claim frequency (2) Claim severity (3)
Property damage
Fire, lightning and debris removal 0.44 $31,762
Wind and hail 2.13 6,476
Water damage and freezing 1.52 6,965
Theft 0.49 3,057
All other (4) 0.92 4,601
Liability
Bodily injury and property damage 0.12 18,351
Medical payments and other 0.05 2,128
Credit card and other (5) 0.00 $10,800
Average (property damage
and liability), 2006-2010
5.69 $8,203

(1) For homeowners multiple peril policies. Excludes tenants and condominium owners policies.
(2) Claims per 100 house years (policies).
(3) Accident year incurred losses, excluding loss adjustment expenses, i.e., indemnity costs per accident year incurred claims.
(4) Includes vandalism and malicious mischief.
(5) Includes coverage for unauthorized use of various cards, forgery, counterfeit money and losses not otherwise classified.

Source: ISO, a Verisk Analytics company.

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  • In the five-year period, 2006-2010, 5.7 percent of insured homes had a claim. Wind and hail accounted for the largest share of claims, with 2.1 percent of insured homes having such a loss.

 

Homeowners Insurance Claims Frequency*

  • The most frequent cause of homeowners claims are related to wind or hail; the costliest are related to fire, lightning or debris removal.
  • About one in 20 insured homes have a claim each year.
  • About one in 50 insured homes have a property damage claim related to wind or hail each year.
  • About one in 65 insured homes have a property damage claim caused by water damage or freezing each year.
  • About one in 200 insured homes have a property damage claim due to theft each year.
  • About one in 230 insured homes have a property damage claim related to fire, lightning or debris removal every year.
  • About one in 800 homeowners policies have a liability claim related to the cost of lawsuits for bodily injury or property damage that the policyholder or family members cause to others.

*I.I.I. calculations, based on ISO, a Verisk Analytics company, data for homeowners insurance claims from 2006-2010 (see table above).

CONSUMER PRICES

The Bureau of Labor Statistics collects the prices of a fixed “basket” of consumer goods and services every month to compile the consumer price index. The price of all types of insurance is heavily influenced by the cost of goods and services paid by insurers to meet.

 

CONSUMER PRICE INDICES FOR INSURANCE AND RELATED ITEMS AND ANNUAL RATES OF CHANGE, 2003-2012 (Cont'd)
(Base: 1982-84=100)
Used cars and trucks Tenants and
household
insurance (3), (4)
Repair of household items (3), (5) Legal services Existing single-family homes
Year Index Percent change Index Percent change Index Percent change Index Percent change Median price ($000) Percent change
2003 142.9 -6.0% 114.8 5.6% 131.0 4.7% 221.7 5.0% 179 8.4%
2004 133.3 -6.7 116.2 1.2 139.4 6.4 232.3 4.8 195 9.3
2005 139.4 4.6 117.6 1.2 147.4 5.7 241.8 4.1 220 12.4
2006 140.0 0.4 116.5 -0.9 154.7 5.0 250.0 3.4 222 1.0
2007 135.7 -3.0 117.0 0.4 161.2 4.2 260.3 4.1 219 -1.3
2008 134.0 -1.3 118.8 1.6 170.0 5.5 270.7 4.0 198 -9.5
2009 127.0 -5.2 121.5 2.2 176.0 3.5 278.1 2.7 173 -12.9
2010 143.1 12.7 125.7 3.5 181.7 3.2 288.1 3.6 173 0.3
2011 149.0 4.1 127.4 1.4 NA NA 297.4 3.2 166 -4.0
2012 150.3 0.9 131.3 3.1 198.7 NA 303.5 2.0 177 (6) 6.3
Percent change
2003-2012
5.2% 14.3% 51.7% 36.9% -1.1%

(1) December 1996=100.
(2) December 1983=100.
(3) December 1997=100.
(4) Only includes insurance covering rental properties.
(5) Includes appliances, reupholstery and inside home maintenance.
(6) Preliminary.

NA=Data not available.

Note: Percent changes after 2007 for consumer price indices and all years for the median price of existing single-family homes calculated from unrounded data.

Source: U.S. Department of Labor, Bureau of Labor Statistics; National Association of Realtors.

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EXPENDITURES FOR HOMEOWNERS AND RENTERS INSURANCE

The average homeowners insurance premium rose by 3.3 percent in 2010, following a 6.0 percent increase in 2009 according to a December, 2012 study by the National Association of Insurance Commissioners. The average renters insurance premium rose by 0.5 percent in 2010, after rising 1.1 percent the previous year.

 

AVERAGE PREMIUMS FOR HOMEOWNERS AND RENTERS INSURANCE, UNITED STATES, 2002-2010
Year Homeowners (1) Percent change Renters (2) Percent change
2002 $593 10.6% $186 4.5%
2003 668 12.6 192 3.2
2004 729 9.1 195 1.6
2005 764 4.8 193 -1.0
2006 804 5.2 189 -2.1
2007 822 2.2 182 -3.7
2008 830 1.0 182 0.0
2009 880 6.0 184 1.1
2010 909 3.3 185 0.5

(1) Based on the HO-3 homeowner package policy for owner-occupied dwellings, 1 to 4 family units. Provides “all risks” coverage (except those specifically excluded in the policy) on buildings and broad named-peril coverage on personal property, and is the most common package written.
(2) Based on the HO-4 renters insurance policy for tenants. Includes broad named-peril coverage for the personal property of tenants.

Source: © 2012 National Association of Insurance Commissioners (NAIC). Reprinted with permission. Further reprint or distribution strictly prohibited without written permission of NAIC.

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  • A 2012 Insurance Information Institute poll conducted by ORC International found that 96 percent of homeowners had homeowners insurance but only 31 percent of renters had renters insurance.
  • The U.S. home ownership rate was 66.1 percent in 2011, down from 66.9 percent in 2010, according to the U.S. Census. The 2010 Census showed that in some of the largest cities renters outnumbered owners, including New York, where 69.0 percent of households were renter occupied, followed by Los Angeles (61.8 percent), Chicago (55. 1 percent) and Houston (54.6 percent).

 

 

AVERAGE PREMIUMS FOR HOMEOWNERS AND RENTERS INSURANCE BY STATE, 2010 (1)
Homeowners Renters Homeowners Renters
State Average
premium (2)
Rank (3) Average
premium (4)
Rank (3) State Average
premium (2)
Rank (3) Average
premium (4)
Rank (3)
Alabama $1,050 10 $223 6 Montana $783 28 $147 35
Alaska 903 19 174 23 Nebraska 901 20 146 36
Arizona 666 42 197 13 Nevada 696 38 200 12
Arkansas 984 13 213 7 New Hampshire 791 26 151 33
California (5) 939 16 213 7 New Jersey 867 22 167 26
Colorado 926 18 177 20 New Mexico 774 30 186 16
Connecticut 1,052 9 194 15 New York 1,044 11 210 9
D.C. 1,065 8 169 25 North Carolina 757 31 128 40
Delaware 636 43 157 29 North Dakota 895 21 115 42
Florida 1,544 3 202 11 Ohio 614 44 179 19
Georgia 833 24 225 4 Oklahoma 1,246 4 228 3
Hawaii 938 17 184 17 Oregon 535 48 171 24
Idaho 500 49 160 27 Pennsylvania 716 36 151 33
Illinois 793 25 169 25 Rhode Island 1,092 6 179 19
Indiana 748 33 175 22 South Carolina 997 12 196 14
Iowa 679 39 143 38 South Dakota 678 40 118 41
Kansas 1,066 7 176 21 Tennessee 852 23 206 10
Kentucky 776 29 169 25 Texas (6) 1,560 1 224 5
Louisiana 1,546 2 234 2 Utah 558 47 147 35
Maine 676 41 145 37 Vermont 730 35 154 31
Maryland 784 27 156 30 Virginia 753 32 152 32
Massachusetts 1,050 10 211 8 Washington 595 45 174 23
Michigan 743 34 200 12 West Virginia 699 37 177 20
Minnesota 981 14 149 34 Wisconsin 563 46 130 39
Mississippi 1,217 5 252 1 Wyoming 748 33 158 28
Missouri 970 15 180 18 United States $909 $185

(1) Policies written by Citizens Property Insurance Corporation (Florida) and Citizens Property Insurance Corporation (Louisiana) are not included. Other southeastern states have wind pools in operation and their data may not be included in this chart.
(2) Based on the HO-3 homeowner package policy for owner-occupied dwellings, 1 to 4 family units. Provides “all risks” coverage (except those specifically excluded in the policy) on buildings and broad named-peril coverage on personal property, and is the most common package written.
(3) Policies written by Citizens Property Insurance (Louisiana), are not included.
(4) Policies written by Citizens Property Insurance (Florida), are not included.
(5) Data provided by the California Department of Insurance.
(6) The Texas Department of Insurance developed home insurance policy forms that are similar but not identical to the standard forms.

Note: Average premium=Premiums/exposure per house years. A house year is equal to 365 days of insured coverage for a single dwelling. The NAIC does not rank state average expenditures and does not endorse any conclusions drawn from this data.

Source: ©2012 National Association of Insurance Commissioners (NAIC). Reprinted with permission. Further reprint or distribution strictly prohibited without written permission of NAIC.

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THE TOP TEN MOST EXPENSIVE AND LEAST EXPENSIVE STATES FOR HOMEOWNERS INSURANCE, 2010
Rank Most expensive states Homeowners average premium (1) Rank Least expensive states Homeowners average premium (1)
1 Texas (2) $1,560 1 Idaho $500
2 Louisiana (3) 1,546 2 Oregon 535
3 Florida (4) 1,544 3 Utah 558
4 Oklahoma 1,246 4 Wisconsin 563
5 Mississippi 1,217 5 Washington 595
6 Rhode Island 1,092 6 Ohio 614
7 Kansas 1,066 7 Delaware 636
8 District Of Columbia 1,065 8 Arizona 666
9 Connecticut 1,052 9 Maine 676
10 Alabama 1,050 10 South Dakota 678

(1) Based on the HO-3 homeowner package policy for owner-occupied dwellings, 1 to 4 family units. Provides “all risks” coverage (except those specifically excluded in the policy) on buildings and broad named-peril coverage on personal property, and is the most common package written.
(2) The Texas Department of Insurance developed home insurance policy forms that are similar but not identical to the standard forms.
(3) Policies written by Citizens Property Insurance (Louisiana), are not included.
(4) Policies written by Citizens Property Insurance (Florida), are not included.

Note: Average premium=Premiums/exposure per house years. A house year is equal to 365 days of insured coverage for a single dwelling. The NAIC does not rank state average expenditures and does not endorse any conclusions drawn from this data.

Source: ©2012 National Association of Insurance Commissioners (NAIC). Reprinted with permission. Further reprint or distribution strictly prohibited without written permission of NAIC.

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TOP TEN WRITERS OF HOMEOWNERS INSURANCE BY DIRECT PREMIUMS WRITTEN, 2011
($000)
Rank Group/company Direct premiums written (1) Market share (2)
1 State Farm Mutual Automobile Insurance $15,891,131 21.3%
2 Allstate Corp. 6,972,558 9.4
3 Farmers Insurance Group of Companies (3) 4,636,830 6.2
4 Liberty Mutual 4,088,561 5.5
5 USAA Insurance Group 3,462,529 4.6
6 Travelers Companies Inc. 3,441,896 4.6
7 Nationwide Mutual Group 2,743,126 3.7
8 Chubb Corp. 1,802,046 2.4
9 Citizens Property Insurance Corp. 1,567,341 2.1
10 American Family Mutual 1,531,338 2.1

(1) Before reinsurance transactions.
(2) Based on U.S. total including territories.
(3) Data for Farmers Group and Zurich Financial Group (which owns Farmers’ management company) are reported separately by SNL Financial.

Source: SNL Financial LC.

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HOMEOWNERS MULTIPLE PERIL INSURANCE UNDERWRITING SNAPSHOT, 2011 (1)
Net premiums earned ($000) $62,575,078
Components of underwriting As a percent of net
premiums earned
Incurred losses 80.8%
Loss adjustment expenses 11.2
Total loss and loss adjustment expenses 92.0%
Commissions and brokerage expenses incurred 12.7
Other underwriting expenses incurred 17.7
Total underwriting expenses incurred 122.4%
Dividends to policyholders 0.4
Investment gains on funds attributable to
insurance transactions and other income
2.9
Combined ratio after dividends 122.3
Overall operating ratio (2) 119.4

(1) After reinsurance transactions.
(2) Combined ratio after dividends, minus investment gains on funds attributable to insurance transactions and other income. Calculated by the Insurance Information Institute, based on SNL Financial data.

Source: SNL Financial LC.

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  • Homeowners insurance losses totaled $57.6 billion in 2011, including $7.0 billion in loss adjustment expenses (LAE).
  • Losses, including LAE, accounted for 92.0 percent of the $62.6 billion in homeowners premiums earned in 2011.
  • Homeowners LAE included $1.1 billion in defense and cost containment expenditures (accounting for 1.7 percent of homeowners premiums earned) and $5.9 billion in other adjusting expenses (or 9.5 percent of premiums earned).

 

 

SELECTED COMPONENTS OF UNDERWRITING, HOMEOWNERS MULTIPLE PERIL INSURANCE, 2011 (1)
SELECTED COMPONENTS OF UNDERWRITING, HOMEOWNERS MULTIPLE PERIL INSURANCE, 2011 (1)

(1) Based on selected components of underwriting as a percent of net premiums earned, rebased to 100.0 percent.
(2) Taxes, licenses, fees, acquisitions, field supervision, collection and general expenses.

Source: SNL Financial LC.

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HOME INJURIES

In 2010 almost 20 million Americans, or one in 15 people, experienced an unintentional injury in the home that required aid from a medical professional, according to an analysis by the National Safety Council (NSC). Injuries requiring medical attention occur more often at home than in public places, the workplace and motor vehicle crashes combined, according to the NSC. There were 62,800 deaths from unintentional home injuries in 2010. Despite population growth and a corresponding rise in the number of fatal injuries, the rate of fatal home injuries has declined dramatically over the past 100 years, falling by 27 percent from 28 deaths per 100,000 people in 1912 to 20.3 per 100,000 people in 2010. The NSC put the economic cost of home injuries at $204.7 billion in 2010.

 

UNINTENTIONAL HOME DEATHS AND INJURIES, 2010
Deaths 62,800
Medically consulted injuries 19,800,000
Death rate per 100,000 population 20.3
Costs $204.7 billion

Source: National Safety Council.

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  • The number and rate of unintentional home injury deaths has been steadily rising since 2000, according to the NSC, largely due to increases in unintentional poisonings and falls.

 

 

PRINCIPAL TYPES OF HOME UNINTENTIONAL INJURY DEATHS, 2010
PRINCIPAL TYPES OF HOME UNINTENTIONAL INJURY DEATHS, 2010

(1) Includes deaths resulting from conflagration, regardless of nature of injury.
(2) Inhalation and ingestion of food or other object that obstructs breathing.

Source: National Safety Council.

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  • Falls are the leading cause of hospital-treated unintentional injuries, according to the Home Safety Council.

 

HIGH-RISK MARKETS

A myriad of different programs in place across the United States provide insurance to high risk policyholders who may have difficulty obtaining coverage from the standard market. So called residual, shared or involuntary market programs make basic insurance coverage more readily available. Today, property insurance from the residual market is provided by Fair Access to Insurance Requirements (FAIR) Plans, Beach and Windstorm Plans, and two state-run insurance companies in Florida and Louisiana: Florida Citizens Property Insurance Company (CPIC) and Louisiana Citizens Property Insurance Corporation (Louisiana Citizens). Established in the late 1960s to ensure the continued provision of insurance in urban areas, FAIR Plans often provide property insurance in both urban and coastal areas, while Beach and Windstorm Plans cover predominantly wind-only risks in designated coastal areas. Hybrid plans like Florida and Louisiana’s CPIC, provide property insurance throughout those states. It is important to note that in addition to windstorm risk, these plans routinely cover a range of other exposures, such as vandalism and fire.

 

TOTAL POLICYHOLDER GROWTH IN SELECTED STATE NATURAL CATASTROPHE INSURANCE PROGRAMS, 2005 AND 2009
Number of policyholders Change, 2005-2009
2005 2009 Date Percent Number
Florida Citizens Property
Insurance Corporation
810,017 1,029, 214 December 2009 27.1% 219,197
California Earthquake Authority 751,767 800,930 December 2009 7.0 49,163
Texas Windstorm Association 118,413 225,641 December 2009 91.0 107,228
Louisiana Citizens Property
Insurance Corporation
134,169 132,000 July 2009 -2.0 2,169
Mississippi Windstorm
Underwriting Association
15,252 41,073 July 2009 169.0 25,821
Florida Hurricane
Catatastrophe Fund (1)
205 184 June 2009 -1.0 -21

(1) Reinsurance fund. Number of policyholders reflects insurance companies that reinsure through the fund.

Source: U.S. General Accountability Office.

 

 

GROSS WRITTEN PREMIUMS FOR SELECTED STATE NATURAL CATASTROPHES PROGRAMS, 2009
($ millions)
Program Gross premiums written Date
Florida Citizens Property Insurance Corporation $2,181 December 2009
Florida Hurricane Catastrophe Fund (1) 1,500 June 2009
California Earthquake Authority 585 December 2009
Texas Windstorm Association 380 December 2009
North Carolina Underwriting Association 298 September 2009
Louisiana Citizens Property Insurance Corporation 230 July 2009
South Carolina Wind and Hail Underwriting Association 100 October 2009
Mississippi Windstorm Underwriting Association 80 July 2009
Alabama Insurance Underwriting Association 30 October 2009
New Jersey Underwriting Association 10 December 2009

(1) Reinsurance fund. Premiums collected may not be directly comparable to other programs.

Source: U.S. General Accountability Office.

 

 

TOTAL EXPOSURE IN SELECTED STATE NATURAL CATASTROPHE INSURANCE PROGRAMS, 2005 AND 2009
Exposure ($billions) Change, 2005-2009
2005 2009 Date Percent Number
California Earthquake Authority $240.0 $281.0 December 2009 17% $41.0
Florida Citizens Property Insurance Corporation 165.0 406.0 December 2009 146 241.0
Texas Windstorm Association 27.5 68.0 December 2009 147 40.5
Louisiana Citizens Property Insurance Corporation 14.9 28.5 July 2009 91 13.6
Mississippi Windstorm Underwriting Association 1.9 11.3 July 2009 495 9.4
Florida Hurricane Catatastrophe Fund (1) 1,508.0 2,162.0 June 2009 43 654.0

(1) Reinsurance fund.

Source: U.S. General Accountability Office.

 

RENTERS AND HOMEOWNERS DEMOGRAPHICS

In 2010, 65.4 percent of housing units were owner occupied and 34.6 percent were renter occupied, according to the latest U.S. Census figures. In 2010, 27.5 percent of owner-occupied units housed people age 65 and over. The same year, 13.7 percent of rental units housed people over age 65.

The nation's homeowners paid a median of $1,000 in monthly housing costs in 2009, compared with $808 for renters, according to the latest American Housing Survey from the Census. However, renters usually paid a higher percentage of their household income on these costs than did owners, 31 percent compared with 20 percent.

 

PERCENT OF OCCUPIED HOUSING UNITS THAT ARE OWNER OCCUPIED, 2011
State Percent Rank (1) State Percent Rank (1)
Alabama 69.9% 10 Montana 67.9% 21
Alaska 63.1 41 Nebraska 66.9 31
Arizona 63.7 40 Nevada 56.3 48
Arkansas 66.6 33 New Hampshire 71.5 6
California 54.9 49 New Jersey 65.0 37
Colorado 64.4 39 New Mexico 68.2 19
Connecticut 67.4 24 New York 53.6 50
Delaware 71.6 5 North Carolina 66.5 34
D.C. 41.2 51 North Dakota 65.7 36
Florida 66.7 32 Ohio 67.0 29
Georgia 64.6 38 Oklahoma 67.0 29
Hawaii 56.8 47 Oregon 60.8 45
Idaho 68.7 17 Pennsylvania 69.5 13
Illinois 67.3 25 Rhode Island 60.6 46
Indiana 69.7 12 South Carolina 69.2 15
Iowa 72.4 2 South Dakota 68.5 18
Kansas 67.8 23 Tennessee 67.3 25
Kentucky 68.9 16 Texas 62.9 42
Louisiana 66.4 35 Utah 69.4 14
Maine 71.0 8 Vermont 71.3 7
Maryland 67.3 25 Virginia 67.3 25
Massachusetts 62.1 44 Washington 62.8 43
Michigan 71.7 4 West Virginia 72.3 3
Minnesota 72.8 1 Wisconsin 67.9 21
Mississippi 69.8 11 Wyoming 70.6 9
Missouri 68.0 20 United States 64.6%

(1) States with the same percentages receive the same rank.

Source: U.S. Department of Commerce, Census Bureau; American Community Survey.

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  • In 2011 West Virginia, Minnesota and Iowa had the highest percentage of owner-occupied housing units.
  • The District of Columbia had the lowest percentage of owner-occupied units, followed by New York, California, Nevada and Hawaii.

 

 

HOUSEHOLD INCOME SPENT ON HOME OWNERSHIP COSTS, 2011
State Percent (1) Rank (2) State Percent (1) Rank (2)
Alabama 31.5% 36 Montana 37.1% 15
Alaska 32.0 35 Nebraska 24.8 49
Arizona 38.9 12 Nevada 42.4 5
Arkansas 27.5 43 New Hampshire 39.8 10
California 48.7 2 New Jersey 47.1 3
Colorado 34.7 22 New Mexico 34.0 27
Connecticut 40.4 9 New York 41.1 6
Delaware 34.7 22 North Carolina 33.7 28
D.C. 35.5 20 North Dakota 19.1 51
Florida 45.9 4 Ohio 30.7 38
Georgia 36.5 19 Oklahoma 28.2 41
Hawaii 49.1 1 Oregon 41.0 8
Idaho 36.7 18 Pennsylvania 33.2 32
Illinois 38.6 13 Rhode Island 41.1 6
Indiana 26.5 46 South Carolina 34.1 25
Iowa 23.6 50 South Dakota 24.9 48
Kansas 26.8 44 Tennessee 32.5 33
Kentucky 28.0 42 Texas 31.4 37
Louisiana 29.6 39 Utah 34.2 24
Maine 35.5 20 Vermont 36.9 16
Maryland 36.9 16 Virginia 33.3 30
Massachusetts 38.6 13 Washington 39.2 11
Michigan 33.7 28 West Virginia 26.5 46
Minnesota 32.1 34 Wisconsin 33.3 30
Mississippi 34.1 25 Wyoming 26.8 44
Missouri 29.3 40 United States 36.6%

(1) Percent of mortgaged owner-occupied housing units spending 30 percent or more of household income on selected owner costs such as all mortgage payments (first mortgage, home equity loans, etc.), real estate taxes, property insurance, utilities, fuel and condominium fees if applicable.
(2) States with the same percentages receive the same rank.

Source: U.S. Department of Commerce, Census Bureau, American Community Survey.

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  • In 2011 Hawaii, California and New Jersey had the highest homeownership costs, based on the percentage of homes in which owners spent 30 percent or more of their income on homeowner-ownership related expenses.
  • North Dakota, Iowa and Nebraska had the lowest costs, based on the percentage of homes in which owners spent 30 percent of more of their income on homeowner-ownership expenses.

 

 

HOUSEHOLD INCOME SPENT ON RENT AND UTILITIES, 2011
State Percent (1) Rank (2) State Percent (1) Rank (2)
Alabama 46.8% 32 Montana 41.6% 45
Alaska 40.6 46 Nebraska 40.3 47
Arizona 47.4 26 Nevada 49.3 13
Arkansas 45.6 39 New Hampshire 47.0 30
California 54.5 2 New Jersey 51.4 6
Colorado 48.8 17 New Mexico 47.6 23
Connecticut 52.0 4 New York 51.3 7
Delaware 49.8 10 North Carolina 47.9 19
D.C. 46.3 35 North Dakota 38.0 49
Florida 56.2 1 Ohio 47.5 24
Georgia 49.6 11 Oklahoma 43.0 43
Hawaii 53.5 3 Oregon 51.8 5
Idaho 46.4 34 Pennsylvania 47.1 29
Illinois 49.2 14 Rhode Island 47.9 19
Indiana 47.5 24 South Carolina 47.3 27
Iowa 43.4 42 South Dakota 35.6 50
Kansas 42.8 44 Tennessee 47.0 30
Kentucky 44.9 41 Texas 46.1 37
Louisiana 47.9 19 Utah 47.8 22
Maine 49.6 11 Vermont 49.2 14
Maryland 50.6 9 Virginia 46.5 33
Massachusetts 48.9 16 Washington 48.0 18
Michigan 51.0 8 West Virginia 38.7 48
Minnesota 47.3 27 Wisconsin 46.0 38
Mississippi 46.3 35 Wyoming 33.3 51
Missouri 45.4 40 United States 49.3%

(1) Percent of renter-occupied units spending 30 percent or more on rent and utilities such as electric, gas, water and sewer, and fuel (oil, coal, etc.) if paid by the renter.
(2) States with the same percentages receive the same rank.

Source: U.S. Department of Commerce, Census Bureau; American Community Survey.

View Archived Tables
  • Nationwide, 49.3 percent of renters spent at least 30 percent of their household income on rent and utilities in 2011.
  • In 2011 Wyoming, South Dakota, North Dakota, West Virginia and Nebraska had the lowest percentage of rental units in which occupants spent 30 percent or more of their income on rent. Florida, California, Hawaii and Connecticut had the highest perc
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