NAIC releases 2016 Homeowners Insurance Report

The National Association of Insurance Commissioners (NAIC) released last week its Homeowners Insurance Report for 2016, providing market distribution data and average policy form costs.

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Report highlights included the identification of HO-3 as the most common policy form, accounting for 58.6 percent of all policy exposures in 2016. Nationally, in 2016, 65.1 percent of dwelling fire and homeowners owner-occupied policies were written for insurance coverage amounts between $50,000 and $300,000. The national average premium for an HO-3 policy form is $1,192. Lastly, the report found that the national average premium for an HO-4 tenant policy form, which does not provide building coverage, is $185.

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

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

The NAIC said the report also revealed there are differences in state requirements for insurance coverage, limits, and benefits, acknowledging the variances make direct state-by-state comparisons difficult.