While weather related losses continued to comprise the bulk of claims in 2018, the 2019 LexisNexis® Home Trends Report reveals that non-weather related water losses – those from accidental water discharges – rose by 8% from 2017. The good news for both the industry and policyholders, however, is that non-weather claims in general are either holding steady or on the decline.
Key non-weather related findings include:
- Water (Non-Weather Related) – Claim severity was up in Florida, and may have been impacted by the Assignment of Benefits issues plaguing that market. Catastrophe claims accounted for 2% of all non-weather related water losses in 2018.
- Theft – As home security systems become more affordable, it may contribute to the continuing decline in theft loss cost. Washington, D.C. continues to rank highest for theft frequency.
- Liability – Continuing a trend that started in 2015, liability loss cost, frequency and severity steadily declined in 2018.
- Other Perils – Loss costs for other perils remained steady from 2017. Perils in this category include physical damage not included elsewhere, extended coverage, damage to property of others, medical payments and more.
Carriers that rely only on their own data may not be seeing the bigger picture that comes from understanding by-peril trends gathered from an industry-wide dataset. Click here to download the 2019 Home Trends Report and see the full picture.