Home Insurance Facts and Statistics: Cost, Coverage & Claims

Trends in the average cost of home insurance

The average cost of homeowners insurance is $2,151 per year in the U.S.

However, rates increased by more in some states than others. Colorado homeowners saw the greatest rate hikes, at around 91% between 2020 and 2025. Wyoming had the smallest increase, at just 1%.

Increase in average home insurance cost by state

Property insurance coverage trends

In 2017, homeowners insurance policies with between $200,000 and $299,999 of dwelling coverage were the most common, representing close to a third of all policies. By 2022, only around one-quarter of homes had that level of coverage.

In comparison, the percentage of homes with $300,000 to $399,000 of dwelling coverage increased from 17.7% to 23.9% over that same time period. And the number of homes with $500,000 to $599,000 nearly doubled.

Amount of dwelling insurance per policy, 2017–2022

Home insurance coverage trends by state

Home insurance policies in Massachusetts have an average of $450,000 to $499,999 of dwelling coverage, which protects the structure of your home.

Homes in Arkansas, Mississippi and Oklahoma typically have the least protection, at $250,000 to $274,999 of dwelling coverage.

Average dwelling insurance coverage by state

Household insurance claims statistics

In 2023, homeowners filed more than 1.7 million wind claims — 32.6% of the total claims filed that year.

Water damage caused by burst pipes, leaky fixtures and appliances and broken sump pumps is the second most common cause for home insurance claims. There were more than 1 million claims filed for water damage not caused by weather in 2023.

Most common home insurance claims by state

While wind damage is the most common home insurance claim nationally, it's not the most prevalent in every state.

For example, states in the Midwest and Tornado Alley tend to have more hail claims. Western states experience more damage from burst pipes and leaky fixtures.

Colorado had the highest overall loss cost from wildfire and flood claims, also known as catastrophe claims, in 2023. But Hawaii had the highest cost per claim, likely due to the damage from the 2023 Lahaina wildfires.

Wind damage claims statistics

That's 10% more than in 2022, when catastrophic weather caused 52% of wind claims.

This is partially because there were 20 named storms in 2023, including Hurricane Lee and Hurricane Idalia. This is much higher than the average of 14 storms per year.

In March of 2023, severe weather in the southeastern U.S. caused an additional $6 billion in damage, some of which was attributed to wind.

Florida, Iowa, Kentucky, Louisiana and Maryland had the highest wind damage costs in 2023. Alaska, California, Nevada, Oregon and Vermont had the least costly wind damage.

Water damage claims statistics

There are two types of water damage insurance will pay to repair.

The majority of water claims aren't caused by weather. In 2023, burst pipes and leaky appliances made up 20.1% of home insurance claims. The cost of these claims decreased by 11.2% from 2022 to 2023.

Weather-related flooding accounted for less than 1% of all home insurance claims in 2023. Flood claims also saw a reduction in cost, down 51.4% from 2022 to 2023.

Connecticut, Illinois, Maryland, Rhode Island and Texas are the most expensive states for weather-related flood claims.

Theft home insurance claims statistics

The total number of theft claims went down by 15.8% from 2022 to 2023. In addition, the cost of those claims decreased by 14.2% year over year.

Although the overall cost of theft claims went down, the amount of each individual claim went up by 1.9% between 2022 and 2023. This is likely due to the continued rise in the cost of household items, which makes them more expensive for insurance companies to replace after theft.

Alaska, California, Nevada, Washington and Washington, D.C., are the most expensive states for theft claims in the country. On the other hand, Florida, Maine, Vermont, West Virginia and Wyoming have the lowest theft claim costs.

Fire damage claims statistics

Only 10% of fire claims were caused by weather, such as lightning or wildfires. This is despite the catastrophic Lahaina wildfires in Hawaii, which caused an estimated $5.6 billion in total damage in August, 2023.

The majority of fire damage takes place in June, July and August. The hot, dry weather makes summer months more susceptible to wildfires. In addition, the use of outdoor grills, fire pits and fireworks can all increase the chances of house fires.

Hawaii, Alaska, California, Colorado and Washington, D.C., had the most expensive fire claims in 2023.

Hail damage claims statistics

The total cost of hail claims increased by 57.9% from 2022 to 2023. This is because of an increase in both the frequency of claims and the cost of damage per claim.

There were 6,962 hailstorms in the U.S. in 2023, up from 4,436 the year before. Of the 28 billion-dollar weather disasters that year, 17 involved severe storms or hail.

Colorado, Iowa, Minnesota, Nebraska and South Dakota were the five states with the highest costs of hail claims in 2023.

Largest homeowners insurance companies

It writes around 18.2% of all home insurance policies in the U.S. That's twice as many as the second-largest company, Allstate.

While there are many homeowners insurance companies in the U.S., the 20 largest companies write nearly three-quarters of the home insurance policies across the country.

20 largest home insurance companies in the U.S.

Methodology

To find the average cost of home insurance in the U.S., ValuePenguin editors gathered rates from the largest companies in every state for every residential ZIP code in the country.

Rates are for a 45-year-old married man with no prior home insurance claims and a good credit score. Policy includes $350,000 of dwelling coverage, $100,000 of personal liability coverage, $5,000 of medical payments coverage and a $1,000 deductible.

ValuePenguin's analysis used insurance rate data from Quadrant Information Services. These rates were publicly sourced from insurer filings and should be used for comparative purposes only. Your own quotes will likely be different.

Sources