Every year, LexisNexis® Risk Solutions publishes the U.S. Home Insurance Trends Report. The report covers both weather and non-weather related by-peril loss cost trends over the previous 12 months. In 2020, COVID-19 and resulting shutdowns had an additional effect on home insurance loss costs, particularly on liability, theft and non-weather-related water loss costs, which all experienced decreases from 2019 numbers.

Highlighted below are a few key non-weather-related findings as shared in the report.

  • Liability – Loss cost, severity and frequency all saw a continued decrease in 2020, though with a spike during the summer months likely from increased outdoor activities.
  • Water (Non-Weather Related) – Considered the most preventable loss event, loss cost and claims frequency both declined in 2020, likely due to people being home more during the pandemic related shutdowns.
  • Theft – This peril continues to experience declining loss costs, again likely because of higher occupancy due to the pandemic and use of burglary deterrents.

While these non-weather-related perils all experienced some amount of decline, loss costs and frequency across all perils combined increased in 2020. It’s likely that loss costs from extreme weather events outweighed decreases caused by COVID-19 shutdowns. To read more by-peril trends – both weather- and non-weather-related – download the 2021 U.S. Home Trends Report today.