The LexisNexis® Home Trends Report, published annually by LexisNexis® Risk Solutions, provides an updated view of 2019 by-peril loss trends in the U.S. home insurance industry. The report highlights some of the challenges – both weather related and non-weather related – that home insurance carriers face in managing by-peril risk in their businesses. As is typical, weather related losses comprised the majority of claims in 2019. Non-weather related water losses, however, increased 10% from 2018, driven by a 9% increase in severity.

Key non-weather related findings include:

  • Water – In 2019, non-weather related water claims cost the industry more than $2 billion, with New Jersey remaining the top state for loss cost.
  • Theft – Loss cost in this peril continued to decline, possibly because of homeowners increasingly using alarm systems and other burglary deterrents.
  • Liability – In spite of a brief spike in loss cost during the summer, frequency and severity in this peril continued to decline.
  • Other Perils – Perils in this category, which includes physical damage not included elsewhere, extended coverage, damage to property of others, and medical payments, decreased 10% from 2018.

As you will see in the report, catastrophe claims and loss cost decreased across all perils for 2019. By providing trends gathered from an industry-wide dataset, our goal with the report is to help insurers assess and price risks more accurately and ultimately achieve a more profitable book of business.

Click here to download the 2020 LexisNexis® Home Trends Report.