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Where The US Homeowners Insurance Premium Dollar Goes 2003–2004

(Rev. 04/07)

Homeowners insurance accounted for 11.7% of all P/C premiums and 24.2% of all personal lines insurance in 2004.

In 2004 (latest data available at close of publishing) claims accounted for $67 of every $100 earned in homeowners insurance premiums, down significantly from $89 reported in 2001 ($68 in 2003).

US expenses, including commissions, state premium taxes, general overhead expenses, licenses and fees, accounted for $29 out of every $100 in premium dollars earned in 2004 and $30 in 2003.

2004 investments added $5 to income, compared to $6 in 2003.

Property damage claims and theft accounted for 84% of claims payments in both 2003 and 2004. In 1998 they accounted for 74% of claims payments. Liability claims accounted for 4% in 2003 and 2004 (10% in 1998). The cost of settling these claims accounted for the remaining 12% of total claim costs in both 2003 and 2004.


1 Includes vandalism and malicious mischief
2 Includes interest, dividends and realized capital gains

Sources:  Estimated by the Insurance Information Institute (III), based on data from Insurance Services Office, Inc. and the National Association of Insurance Commissioners.  From III Fact Book, 2006.