Homeowners and Renters Insurance

Homeowners and Renters Insurance

HOMEOWNERS INSURANCE EXPENDITURES

The average homeowners insurance premium rose by 5.6 percent in 2012, following a 7.7 percent increase in 2011, according to a February 2015 study by the National Association of Insurance Commissioners. The average renters insurance premium was unchanged in 2012, after rising 1.1 percent the previous year. Florida had the highest average homeowners insurance premium in 2012 ($2,084) and Idaho had the lowest ($538). The countrywide average homeowners insurance premium was $1,034 in 2012. (See tables in EXPENDITURES FOR HOMEOWNERS AND RENTERS INSURANCE section below).

CAUSES OF HOMEOWNERS INSURANCE LOSSES

In 2013, 4.8 percent of insured homes had a claim, according to ISO. Property damage, including theft, accounted for 97.0 percent of those claims. Changes in the percentage of each type of homeowners loss from one year to another are partially influenced by large fluctuations in the number and severity of weather-related events such as hurricanes and winter storms. There are two ways of looking at losses: by the average number of claims filed per 100 policies (frequency) and by the average amount paid for each claim (severity). The loss category “water damage and freezing” includes damage caused by mold, if covered. Every state except Arkansas, New York, North Carolina and Virginia has adopted an ISO mold limitation for homeowners insurance coverage, which allows insurers to exclude the coverage unless the condition results from a covered peril.

Jewelry was the top claims category under homeowners policies in 2012, based on the dollar value of contents claims of about 300 insurers analyzed and tracked by inventory services firm, Enservio. The firm’s Contents Claims Index (CCI) includes items that are damaged, lost or stolen. Enservio found that jewelry was also the most frequently claimed item.

HOME INVENTORIES

On average, over the past eight years about half of homeowners said they prepared an inventory of their possessions to help document losses for their insurers, according to polls conducted for the Insurance Information Institute (I.I.I.). Forty-eight percent of homeowners said they had an inventory in a June 2014 I.I.I. survey. The survey showed that homeowners in the South were more likely to have a home inventory (56 percent), followed by homeowners in the Northeast and Midwest (45 percent and 44 percent, respectively). Only 40 percent of homeowners in the West said they had an inventory.

SINKHOLE CLAIMS

In March 2013 an entire house fell into a huge sinkhole in a suburb of Tampa, Florida, garnering national attention. Although such large, sudden and destructive sinkholes are relatively rare, thousands of small sinkholes appear in the U.S. each year. The most damage from sinkholes occurs in Florida, Texas, Alabama, Missouri, Kentucky, Tennessee and Pennsylvania, according to the U.S. Geological Survey. Most homeowners insurance policies exclude coverage for sinkhole damage. However, homeowners insurance companies in Florida and Tennessee are required to offer the coverage. In Florida catastrophic ground cover collapse is mandatory; comprehensive sinkhole coverage is optional. (Note: For information on the Florida law see http://www.insuringflorida.org/articles/sinkholes.html. For statistics on Florida sinkholes see http://www.floir.com/sections/pandc/sinkholepage.aspx).

CONTENTS CLAIM INDEX, HOMEOWNERS INSURANCE, 2012 (1)

 

Category Percent of total claims
Jewelry 16%
Electronics 13
Apparel 13
Furniture 10
House and home 10
Tools 5
Appliances 4
Sporting goods 3
Books and magazines 3
Beds and matresses 2

(1) Top contents categories as compiled from homeowners claims filed with insurers. Ranked by dollar value as a percent of total claims. Dollar value is based on the cost to replace items that are damaged, lost or stolen. The Index includes 300 insurers.

Source: Enservio.

 

  • Jewelry losses were the top claims category based on the value of homeowners contents claims, according to inventory services firm, Enservio.

 

HOMEOWNERS LOSSES RANKED BY CLAIMS SEVERITY (AVERAGE CLAIM), 2009-2013 (1)

(Weighted average, 2009-2013)

(1) For homeowners multiple peril policies. Excludes tenants and condominium owners policies. Accident year incurred losses, excluding loss adjustment expenses, i.e., indemnity costs per accident year incurred claims. Excludes Alaska and Texas.
(2) Includes vandalism and malicious mischief.
(3) Includes coverage for unauthorized use of various cards, forgery, counterfeit money and losses not otherwise classified.

Source: ISO, a Verisk Analytics company.

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HOMEOWNERS LOSSES RANKED BY CLAIMS FREQUENCY, 2009-2013 (1)

(Weighted average, 2009-2013)

(1) Claims per 100 house years (policies). For homeowners multiple peril policies. Excludes tenants and condominium owners policies. Excludes Alaska and Texas.
(2) Includes vandalism and malicious mischief.
(3) Includes coverage for unauthorized use of various cards, forgery, counterfeit money and losses not otherwise classified.

Source: ISO, a Verisk Analytics company.

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HOMEOWNERS INSURANCE LOSSES, 2009-2013 (1)

  Total homeowners losses   Total homeowners losses
Year Claim frequency (2) Claim severity (3) Year Claim frequency (2) Claim severity (3)
2009 6.09 $8,411 2012 7.56 $8,801
2010 6.66 8,618 2013 4.81 10,271
2011 9.83 8,455 Average (4) 7.02 $8,793

(1) For homeowners multiple peril policies. Excludes tenants and condominium policies. Excludes Alaska and Texas.
(2) Claims per 100 house years (policies).
(3) Average amount paid per claim; based on accident year incurred losses, excluding loss adjustment expenses, i.e., indemnity costs per accident year incurred claims.
(4) Weighted average, 2009-2013.

Source: ISO, a Verisk Analytics company.

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  • In 2013, 4.8 percent of insured homes experienced a claim.
  • Homeowners insurance losses, net of reinsurance, rose to $39.9 billion in 2014 from $35.5 billion in 2013, according to SNL Financial.

 

HOMEOWNERS INSURANCE LOSSES BY CAUSE, 2009-2013 (1)

(Percent of losses incurred)

Cause of loss 2009 2010 2011 2012 2013
Property damage (2) 95.1% 95.2% 97.0% 97.1% 97.0%
Fire and lightning 27.0 25.2 18.5 23.6 30.5
Wind and hail 32.1 35.8 46.3 49.0 29.9
Water damage and freezing 24.4 21.2 21.6 17.0 26.4
Theft 3.3 3.1 2.3 2.9 3.4
All other property damage (3) 8.2 9.9 8.3 4.6 6.8
Liability (4) 4.9% 4.8% 3.0% 2.9% 3.0%
Bodily injury and property damage 4.7 4.7 2.8 2.6 2.7
Medical payments and other 0.2 0.2 0.2 0.2 0.3
Credit card and other (5) (6) (6) (6) (6) (6)
Total 100.0% 100.0% 100.0% 100.0% 100.0%

(1) For homeowners multiple peril policies. Excludes tenants and condominium owners policies. Excludes Alaska and Texas.
(2) First party, i.e., covers damage to policyholder's own property.
(3) Includes vandalism and malicious mischief.
(4) Payments to others for which policyholder is responsible.
(5) Includes coverage for unauthorized use of various cards, forgery, counterfeit money and losses not otherwise classified.
(6) Less than 0.1 percent.

Source: ISO, a Verisk Analytics company.

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AVERAGE HOMEOWNERS LOSSES, 2009-2013 (1)

(Weighted average, 2009-2013)

Cause of loss Claim frequency (2) Claim severity (3)
Property damage (4) 6.87 $8,668
Fire and lightning 0.40 37,153
Wind and hail 3.20 7,741
Water damage and freezing 1.79 7,479
Theft 0.50 3,620
All other (5) 0.98 4,757
Liability (6) 0.16 $14,412
Bodily injury and property damage 0.11 19,466
Medical payments and other 0.05 2,560
Credit card and other (7) (8) $592
Average (property damage
and liability), 2009-2013
7.02 $8,793

(1) For homeowners multiple peril policies. Excludes tenants and condominium owners policies. Excludes Alaska and Texas.
(2) Claims per 100 house years (policies).
(3) Accident year incurred losses, excluding loss adjustment expenses, i.e., indemnity costs per accident year incurred claims.
(4) First-party, i.e., covers damage to policyholder's own property.
(5) Includes vandalism and malicious mischief.
(6) Payments to others for which policyholder is responsible.
(7) Includes coverage for unauthorized use of various cards, forgery, counterfeit money and losses not otherwise classified.
(8) Less than 0.01.

Source: ISO, a Verisk Analytics company.

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  • In the five-year period, 2009-2013, 7.0 percent of insured homes had a claim. Wind and hail accounted for the largest share of claims, with 3.2 percent of insured homes having such a loss.

 

Homeowners Insurance Claims Frequency*

  • Homeowners claims related to wind or hail are the most frequent; the costliest are related to fire and lightning.
  • About one in 15 insured homes has a claim each year.
  • About one in 30 insured homes has a property damage claim related to wind or hail each year.
  • About one in 55 insured homes has a property damage claim caused by water damage or freezing each year.
  • About one in 200 insured homes has a property damage claim due to theft each year.
  • About one in 250 insured homes has a property damage claim related to fire and lightning.
  • About one in 900 homeowners policies has a liability claim related to the cost of lawsuits for bodily injury or property damage that the policyholder or family members cause to others.

*I.I.I. calculations, based on ISO, a Verisk Analytics company, data for homeowners insurance claims from 2009-2013 (see table above).

CONSUMER PRICES

The Bureau of Labor Statistics collects the prices of a fixed “basket” of consumer goods and services every month to compile the consumer price index. The price of all types of insurance is heavily influenced by the cost of goods and services paid by insurers to meet.

 

CONSUMER PRICE INDICES FOR INSURANCE AND RELATED ITEMS AND ANNUAL RATES OF CHANGE, 2006-2015

(Base: 1982-84=100)

  Used cars
and trucks
Tenants and
household
insurance (3), (4)
Repair of
household
items (3), (5)
Legal
services
Existing single-
family homes
Year Index Percent
change
Index Percent
change
Index Percent
change
Index Percent
change
Median price
($000)
Percent
change
2006 140.0 0.4% 116.5 -0.9% 154.7 5.0% 250.0 3.4% $222 1.0%
2007 135.7 -3.0 117.0 0.4 161.2 4.2 260.3 4.1 219 -1.3
2008 134.0 -1.3 118.8 1.6 170.0 5.5 270.7 4.0 198 -9.5
2009 127.0 -5.2 121.5 2.2 176.0 3.5 278.1 2.7 173 -12.9
2010 143.1 12.7 125.7 3.5 181.7 3.2 288.1 3.6 173 0.3
2011 149.0 4.1 127.4 1.4 NA NA 297.4 3.2 166 -4.0
2012 150.3 0.9 131.3 3.1 198.7 NA 303.5 2.0 177 6.6
2013 149.9 -0.3 135.4 3.1 206.7 4.0 311.8 2.8 197 11.4
2014 149.1 -0.5 141.9 4.8 212.4 2.8 318.5 2.1 209 5.8
2015 147.1 -1.3 146.4 3.2 220.1 3.6 323.6 1.6 NA NA
Percent change
2006-2015
  5.1%   25.7%   42.3%   29.4%   NA

(1) December 1996=100.
(2) December 1983=100.
(3) December 1997=100.
(4) Only includes insurance covering rental properties.
(5) Includes appliances, reupholstery and inside home maintenance.

NA=Data not available.

Note: Percent changes after 2007 for consumer price indices and all years for the median price of existing single-family homes calculated from unrounded data.

Source: U.S. Department of Labor, Bureau of Labor Statistics; National Association of Realtors.

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EXPENDITURES HOMEOWNERS AND RENTERS INSURANCE

The average homeowners insurance premium rose by 5.6 percent in 2012, following a 7.7 percent increase in 2011, according to a February 2015 study by the National Association of Insurance Commissioners. The average renters insurance premium was unchanged in 2012, after rising 1.1 percent the previous year.

AVERAGE PREMIUMS FOR HOMEOWNERS AND RENTERS INSURANCE, UNITED STATES, 2004-2012

Year Homeowners (1) Percent change Renters (2) Percent change
2004 $729 9.1% $195 1.6%
2005 764 4.8 193 -1.0
2006 804 5.2 189 -2.1
2007 822 2.2 182 -3.7
2008 830 1.0 182 (3)
2009 880 6.0 184 1.1
2010 909 3.3 185 0.5
2011 979 7.7 187 1.1
2012 1,034 5.6 187 (3)

(1) Based on the HO-3 homeowner package policy for owner-occupied dwellings, one- to four-family units. Provides all risks coverage (except those specifically excluded in the policy) on buildings and broad named-peril coverage on personal property, and is the most common package written.
(2) Based on the HO-4 renters insurance policy for tenants. Includes broad named-peril coverage for the personal property of tenants.
(3) Less than 0.1 percent.

Source: © 2015 National Association of Insurance Commissioners (NAIC). Reprinted with permission. Further reprint or distribution strictly prohibited without written permission of NAIC.

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  • A 2015 Insurance Information Institute poll conducted by ORC International found that 95 percent of homeowners had homeowners insurance but only 40 percent of renters had renters insurance.
  • The U.S. homeownership rate was 63.4 percent in second-quarter 2015, down from 64.7 percent a year ago to the lowest rate since 1967, according to the U.S. Census Bureau. The 2010 Census showed that in some of the largest cities renters outnumbered owners, including New York, where 69.0 percent of households were occupied by renters, followed by Los Angeles (61.8 percent), Chicago (55.1 percent) and Houston (54.6 percent).

 

AVERAGE PREMIUMS FOR HOMEOWNERS AND RENTERS INSURANCE BY STATE, 2012 (1)

  Homeowners Renters   Homeowners Renters
State Average
premium (2)
Rank (3) Average
premium (4)
Rank (3) State Average
premium (2)
Rank (3) Average
premium (4)
Rank (3)
Alabama  $1,248 6 $239 3 Montana $871 29 $145 46
Alaska  942 25 161 33 Nebraska 1,040 17 150 41
Arizona  691 44 195 17 Nevada 674 46 193 18
Arkansas  1,096 15 215 9 New Hampshire 848 30 150 41
California (5) 980 22 207 12 New Jersey 981 21 166 31
Colorado  1,038 18 169 29 New Mexico 844 31 183 20
Connecticut  1,160 9 196 15 New York 1,158 10 211 11
Delaware 678 45 153 40 North Carolina 927 26 134 48
D.C. 1,103 14 164 32 North Dakota 1,038 18 115 51
Florida  2,084 1 217 8 Ohio 721 43 185 19
Georgia  975 23 226 6 Oklahoma 1,501 4 234 4
Hawaii  957 24 221 7 Oregon 567 50 168 30
Idaho  538 51 157 36 Pennsylvania 804 36 156 37
Illinois  881 28 171 27 Rhode Island 1,233 7 182 21
Indiana  840 33 182 21 South Carolina 1,134 13 196 15
Iowa  779 40 147 45 South Dakota 789 38 118 50
Kansas  1,213 8 174 25 Tennessee 1,008 20 212 10
Kentucky  916 27 171 27 Texas (6) 1,661 3 228 5
Louisiana  1,742 2 242 2 Utah 580 49 145 46
Maine  741 42 149 43 Vermont 782 39 154 39
Maryland  837 34 160 34 Virginia  843 32 158 35
Massachusetts  1,150 11 206 14 Washington 648 47 173 26
Michigan  802 37 207 12 West Virginia 771 41 176 24
Minnesota  1,140 12 149 43 Wisconsin 631 48 130 49
Mississippi  1,314 5 244 1 Wyoming 821 35 156 37
Missouri  1,091 16 182 21 United States $1,034   $187  

(1) See previous chart for state funds and residual markets included.
(2) Based on the HO-3 homeowner package policy for owner-occupied dwellings, one-to four-family units. Provides all risks coverage (except those specifically excluded in the policy) on buildings and broad named-peril coverage on personal property, and is the most common package written.
(3) Ranked from highest to lowest. States with the same premium receive the same rank.
(4) Based on the HO-4 renters insurance policy for tenants. Includes broad named-peril coverage for the personal property of tenants.
(5) Data provided by the California Department of Insurance.
(6) The Texas Department of Insurance developed home insurance policy forms that are similar but not identical to the standard forms. In addition, due to the Texas Windstorm Association (which writes wind-only policies) classifying HO-1, 2 and 5 premiums as HO-3, the average premium for homeowners insurance is artificially high.

Note: Average premium=Premiums/exposure per house years. A house year is equal to 365 days of insured coverage for a single dwelling. The NAIC does not rank state average expenditures and does not endorse any conclusions drawn from this data.

Source: © 2015 National Association of Insurance Commissioners (NAIC). Reprinted with permission. Further reprint or distribution strictly prohibited without written permission of NAIC.

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AVERAGE HOMEOWNERS INSURANCE PREMIUMS RANKED BY STATE, 2012 (1)

Rank (2) State Average premium Rank (2) State Average premium
1 Florida $2,084 27 Kentucky $916
2 Louisiana 1,742 28 Illinois 881
3 Texas (3) 1,661 29 Montana 871
4 Oklahoma 1,501 30 New Hampshire 848
5 Mississippi 1,314 31 New Mexico 844
6 Alabama 1,248 32 Virginia  843
7 Rhode Island 1,233 33 Indiana 840
8 Kansas 1,213 34 Maryland 837
9 Connecticut 1,160 35 Wyoming 821
10 New York 1,158 36 Pennsylvania 804
11 Massachusetts 1,150 37 Michigan 802
12 Minnesota 1,140 38 South Dakota 789
13 South Carolina 1,134 39 Vermont 782
14 D.C. 1,103 40 Iowa 779
15 Arkansas 1,096 41 West Virginia 771
16 Missouri 1,091 42 Maine 741
17 Nebraska 1,040 43 Ohio 721
18 Colorado  1,038 44 Arizona  691
18 North Dakota 1,038 45 Delaware 678
20 Tennessee 1,008 46 Nevada 674
21 New Jersey 981 47 Washington 648
22 California (4) 980 48 Wisconsin 631
23 Georgia 975 49 Utah 580
24 Hawaii 957 50 Oregon 567
25 Alaska 942 51 Idaho 538
26 North Carolina 927      

(1) Includes policies written by Citizens Property Insurance Corp. (Florida) and Louisiana Citizens Property Insurance Corp., Alabama Insurance Underwriting Association, Mississippi Windstorm Underwriting Association and Residential Property Insurance Underwriting Association, North Carolina Joint Underwriting Association and South Carolina Wind and Hail Underwriting Association. Other southeastern states have wind pools in operation and their data may not be included in this chart. Based on the HO-3 homeowner package policy for owner-occupied dwellings, one- to four-family units. Provides all risks coverage (except those specifically excluded in the policy) on buildings and broad named-peril coverage on personal property and is the most common package written.
(2) States with the same premium receive the same rank.
(3) The Texas Department of Insurance developed home insurance policy forms that are similar but not identical to the standard forms. In addition, due to the Texas Windstorm Insurance Association (which writes wind-only policies) classifying HO-1, 2 and 5 premiums as HO-3, the average premium for homeowners insurance is artificially high.
(4) Data provided by the California Department of Insurance.

Note: Average premium=Premiums/exposure per house years. A house year is equal to 365 days of insured coverage for a single dwelling. The NAIC does not rank state average expenditures and does not endorse any conclusions drawn from this data.

Source: © 2015 National Association of Insurance Commissioners (NAIC). Reprinted with permission. Further reprint or distribution strictly prohibited without written permission of NAIC.

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TOP 10 WRITERS OF HOMEOWNERS INSURANCE BY DIRECT PREMIUMS WRITTEN, 2014

($000)

Rank Group/company Direct premiums written (1) Market share (2)
1 State Farm Mutual Automobile Insurance $17,631,832 20.3%
2 Allstate Corp. 7,712,425 8.9
3 Liberty Mutual 5,712,724 6.6
4 Farmers Insurance Group of Companies (3) 5,153,641 5.9
5 USAA Insurance Group 4,696,925 5.4
6 Travelers Companies Inc. 3,305,761 3.8
7 Nationwide Mutual Group 3,206,155 3.7
8 American Family Mutual 2,428,167 2.8
9 Chubb Corp. 2,049,106 2.4
10 Erie Insurance Group 1,368,426 1.6

(1) Before reinsurance transactions, includes state funds.
(2) Based on U.S. total, includes territories.
(3) Data for Farmers Insurance Group of Companies and Zurich Financial Group (which owns Farmers' management company) are reported separately by SNL Financial.

Source: SNL Financial LC.

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HOMEOWNERS INSURANCE INDUSTRY UNDERWRITING EXPENSES, 2014 (1)

Expense Percent of premiums
LOSSES AND RELATED EXPENSES (2)  
Loss and loss adjustment expense (LAE) ratio 62.1%
    Incurred losses 53.0
    Defense and cost containment expenses incurred 1.6
    Adjusting and other expenses incurred 7.4
OPERATING EXPENSES (3)  
Expense ratio 29.0%
    Net commissions and brokerage expenses incurred 12.7
    Taxes, licenses and fees 2.6
    Other acquisition and field supervision expenses incurred 8.5
    General expenses incurred 5.2
DIVIDENDS TO POLICYHOLDERS (2) 0.5%
COMBINED RATIO AFTER DIVIDENDS (4) 91.6%

(1) After reinsurance transactions.
(2) As a percent of net premiums earned ($75.3 billion in 2014).
(3) As a percent of net premiums written ($77.9 billion in 2014).
(4) Sum of loss and LAE, expense and dividends ratios.

Source: SNL Financial LC.

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HOME INJURIES

In 2013, 19.9 million Americans, or one in 16 people, experienced an unintentional injury in the home that required aid from a medical professional, according to an analysis by the National Safety Council (NSC). Injuries requiring medical attention occur more often at home than in public places, the workplace and motor vehicle crashes combined, according to the NSC. There were 66,000 deaths from unintentional home injuries in 2013. Despite population growth and a corresponding rise in the number of fatal injuries, the rate of fatal home injuries has declined dramatically over the past 100 years, falling by 25 percent to 20.9 deaths per 100,000 people in 2013 from 28 deaths per 100,000 people in 1912. However, the number and rate of unintentional home injury deaths has been steadily rising since 2000, largely due to increases in unintentional poisonings and falls.

UNINTENTIONAL HOME DEATHS AND INJURIES, 2013

Deaths 66,000
Medically consulted injuries 19,900,000
Death rate per 100,000 population 20.9
Cost $226.1 billion

Source: National Safety Council. (2015). Injury Facts®, 2015 Edition. Itasca, IL.

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PRINCIPAL TYPES OF HOME UNINTENTIONAL INJURY DEATHS, 2013

(1) Inhalation and ingestion of food or other object that obstructs breathing.

Source: National Safety Council. (2015). Injury Facts®, 2015 Edition. Itasca, IL.

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  • Falls are the leading cause of hospital-treated unintentional injuries, according to the Home Safety Council.

HIGH-RISK MARKETS

A myriad of different programs in place across the United States provide insurance to high risk policyholders who may have difficulty obtaining coverage from the standard market. So called residual, shared or involuntary market programs make basic insurance coverage more readily available. Today, property insurance from the residual market is provided by Fair Access to Insurance Requirements (FAIR) Plans, Beach and Windstorm Plans, and two state-run insurance companies in Florida and Louisiana: Florida Citizens Property Insurance Company (CPIC) and Louisiana Citizens Property Insurance Corporation (Louisiana Citizens). Established in the late 1960s to ensure the continued provision of insurance in urban areas, FAIR Plans often provide property insurance in both urban and coastal areas, while Beach and Windstorm Plans cover predominantly wind-only risks in designated coastal areas. Hybrid plans like Florida and Louisiana’s CPIC, provide property insurance throughout those states. It is important to note that in addition to windstorm risk, these plans routinely cover a range of other exposures, such as vandalism and fire.

RENTERS AND HOMEOWNERS DEMOGRAPHICS

In 2013, 63.5 percent of housing units were owner occupied and 36.5 percent were renter occupied, according to the latest U.S. Census figures. In 2013, 29 percent of owner-occupied units housed people age 65 and over. The same year, 14 percent of rental units housed people over age 65.

The nation's homeowners paid a median of $934 in monthly housing costs in 2013, compared with $850 for renters, according to the latest American Housing Survey from the Census. However, renters usually paid a higher percentage of their household income on these costs than did owners, 33 percent compared with 19 percent.

PERCENT OF OCCUPIED HOUSING UNITS THAT ARE OWNER OCCUPIED, 2014

 

State Percent Rank (1) State Percent Rank (1)
Alabama 67.7% 15 Montana 66.4% 22
Alaska 62.5 39 Nebraska 65.9 26
Arizona 61.1 44 Nevada 53.6 49
Arkansas 65.8 28 New Hampshire 70.2 6
California 53.7 48 New Jersey 63.3 38
Colorado 63.9 36 New Mexico 66.9 17
Connecticut 66.4 22 New York 53.0 50
Delaware 70.3 5 North Carolina 64.2 34
D.C. 40.6 51 North Dakota 63.8 37
Florida 64.1 35 Ohio 65.3 30
Georgia 62.2 40 Oklahoma 65.1 32
Hawaii 56.7 47 Oregon 60.7 45
Idaho 68.0 13 Pennsylvania 68.8 10
Illinois 65.5 29 Rhode Island 58.8 46
Indiana 68.6 11 South Carolina 68.0 13
Iowa 70.9 4 South Dakota 68.2 12
Kansas 66.6 20 Tennessee 66.1 24
Kentucky 66.1 24 Texas 61.2 43
Louisiana 64.4 33 Utah 69.2 9
Maine 71.3 3 Vermont 70.0 8
Maryland 65.9 26 Virginia 65.3 30
Massachusetts 61.6 42 Washington 61.7 41
Michigan 70.2 6 West Virginia 72.2 1
Minnesota 71.7 2 Wisconsin 66.6 20
Mississippi 67.7 15 Wyoming 66.9 17
Missouri 66.9 17 United States 63.1%  

(1) States with the same percentages receive the same rank.

Source: U.S. Department of Commerce, Census Bureau; American Community Survey.

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  •  In 2014 West Virginia, Minnesota and Maine had the highest percentage of owner-occupied housing units.
  • The District of Columbia had the lowest percentage of owner-occupied units, followed by New York, Nevada, California and Hawaii.

PERCENT OF MORTGAGED OWNERS SPENDING 30 PERCENT OR MORE OF HOUSEHOLD INCOME ON HOMEOWNERSHIP COSTS, 2014

 

State Percent (1) Rank (2) State Percent (1) Rank (2)
Alabama 28.0% 30 Montana 30.5% 19
Alaska 26.9 35 Nebraska 22.9 46
Arizona 29.1 23 Nevada 32.0 13
Arkansas 24.4 43 New Hampshire 32.5 10
California 40.3 1 New Jersey 39.3 3
Colorado 28.9 25 New Mexico 32.1 12
Connecticut 34.0 8 New York 37.1 4
Delaware 31.1 17 North Carolina 28.3 28
D.C. 26.4 36 North Dakota 16.3 51
Florida 36.9 5 Ohio 24.7 41
Georgia 29.4 21 Oklahoma 24.6 42
Hawaii 40.3 1 Oregon 32.7 9
Idaho 27.1 33 Pennsylvania 28.5 26
Illinois 31.4 15 Rhode Island 36.8 6
Indiana 22.6 48 South Carolina 29.3 22
Iowa 20.8 50 South Dakota 22.5 49
Kansas 23.5 45 Tennessee 29.0 24
Kentucky 25.7 38 Texas 27.0 34
Louisiana 28.1 29 Utah 27.3 32
Maine 31.4 15 Vermont 35.4 7
Maryland 30.9 18 Virginia 28.5 26
Massachusetts 32.5 10 Washington 31.5 14
Michigan 26.4 36 West Virginia 22.7 47
Minnesota 24.8 40 Wisconsin 27.9 31
Mississippi 30.4 20 Wyoming 23.6 44
Missouri 25.2 39 United States 30.7%  

(1) Percent of mortgaged owner-occupied housing units spending 30 percent or more of household income on selected owner costs such as all mortgage payments (first mortgage, home equity loans, etc.), real estate taxes, property insurance, utilities, fuel and condominium fees if applicable.
(2) States with the same percentages receive the same rank.

Source: U.S. Department of Commerce, Census Bureau; American Community Survey.

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  • In 2014, Hawaii, California and New Jersey had the highest homeownership costs, based on the percentage of homes in which owners spent 30 percent or more of their income on homeowner-ownership related expenses.
  • North Dakota, Iowa and South Dakota had the lowest costs, based on the percentage of homes in which owners spent 30 percent of more of their income on homeowner-ownership expenses.

PERCENT OF RENTER OCCUPIED UNITS SPENDING 30 PERCENT OR MORE OF THEIR INCOME ON RENT AND UTILITIES, 2014

 

State Percent (1) Rank (2) State Percent (1) Rank (2)
Alabama 44.7% 34   Montana 41.1% 44
Alaska 46.8 18   Nebraska 38.8 47
Arizona 45.6 27   Nevada 46.9 16
Arkansas 41.8 43   New Hampshire 46.9 16
California 53.8 1   New Jersey 50.0 6
Colorado 48.1 10   New Mexico 45.8 26
Connecticut 49.7 7   New York 51.4 5
Delaware 46.3 22   North Carolina 46.3 22
D.C. 45.5 29   North Dakota 36.4 49
Florida 53.6 2   Ohio 44.3 36
Georgia 47.5 13   Oklahoma 39.9 46
Hawaii 52.6 3   Oregon 51.9 4
Idaho 41.9 42   Pennsylvania 46.6 19
Illinois 46.3 22   Rhode Island 49.3 8
Indiana 45.4 31   South Carolina 46.3 22
Iowa 40.2 45   South Dakota 35.9 51
Kansas 42.0 41   Tennessee 45.6 27
Kentucky 43.2 40   Texas 45.3 33
Louisiana 45.4 31   Utah 43.7 37
Maine 46.6 19   Vermont 47.2 14
Maryland 48.8 9   Virginia 46.6 19
Massachusetts 47.8 12   Washington 47.1 15
Michigan 48.0 11   West Virginia 37.9 48
Minnesota 45.5 29   Wisconsin 44.6 35
Mississippi 43.5 39   Wyoming 36.2 50
Missouri 43.6 38 United States 47.9%  

(1) Percent of renter-occupied units spending 30 percent or more on rent and utilities such as electric, gas, water and sewer, and fuel (oil, coal, etc.) if paid by the renter.
(2) States with the same percentages receive the same rank.

Source: U.S. Department of Commerce, Census Bureau; American Community Survey.

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  • Nationwide, 47.9 percent of renters spent at least 30 percent of their household income on rent and utilities in 2014.
  • In 2014 South Dakota, Wyoming, North Dakota and West Virginia had the lowest percentage of rental units in which occupants spent 30 percent or more of their income on rent. California, Florida, Hawaii and Oregon had the highest percentage.