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On January 4, 2024, the National Association of Insurance Commissioners (NAIC) released its homeowners insurance report of 2021 data. The report, "Dwelling Fire, Homeowners Owner-Occupied, and Homeowners Tenant and Condominium/Cooperative Unit Owner's Insurance Report: Data for 2021," provides validated information on market distribution and the average cost by policy form and amount of insurance.

KANSAS CITY, Mo. (Jan. 4, 2024)

NAIC Releases Homeowners Insurance Report for 2021

The National Association of Insurance Commissioners (NAIC) has released its homeowners insurance report of 2021 data. The report, Dwelling Fire, Homeowners Owner-Occupied, and Homeowners Tenant and Condominium/Cooperative Unit Owner’s Insurance Report: Data for 2021, provides validated information on market distribution and the average cost by policy form and amount of insurance.

The report compiles national and state-specific premium and exposure information for non-commercial dwelling fire and homeowners insurance package policies. It also contains data descriptions, as well as information on how certain economic, demographic, and natural phenomena affect the price of homeowners insurance.

Key findings include:

  • The nationwide average premium for dwelling fire and homeowners owner-occupied policies increased by 6.97% between 2020 and 2021.
  • HO-3 average premium increased by 7.6% nationwide over 2020, while HO-4 average premium decreased by 1.7% between 2020 and 2021.
  • HO-3 coverage accounts for nearly 77% of owner-occupied exposures. HO-3 provides all-risk coverage on buildings and broad named-peril coverage on personal property.
  • HO-4 coverage accounts for 75% of non-owner-occupied exposures. Tenant and condominium policies do not provide coverage for the building. Therefore, the distribution of exposures for these types of policies is concentrated at significantly lower insurance amounts.

Many factors affect a state's expenditures and premiums, including underwriting costs, repair costs, and state laws. There are also differences in state requirements for insurance coverage, limits, and benefits. These variances can make direct state-by-state comparisons difficult.

Data from the report was collected from insurance statistical agents for all states except California and Texas, which supply data directly to the NAIC. Some data from residual market mechanisms are now included in the report.

About the National Association of Insurance Commissioners

As part of our state-based system of insurance regulation in the United States, the National Association of Insurance Commissioners (NAIC) provides expertise, data, and analysis for insurance commissioners to effectively regulate the industry and protect consumers. The U.S. standard-setting organization is governed by the chief insurance regulators from the 50 states, the District of Columbia and five U.S. territories. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer reviews, and coordinate regulatory oversight. NAIC staff supports these efforts and represents the collective views of state regulators domestically and internationally.