AVERAGE HOMEOWNERS LOSSES, 2004-2008 (1)

(Weighted average, 2004-2008)

Cause of loss Claim frequency (2) Claim severity (3)
Property damage    
Fire, lightning and debris removal 0.51 $25,375
Wind and hail 2.26 7,554
Water damage and freezing 1.40 5,895
Theft 0.49 2,609
All other (4) 0.89 3,850
Liability    
Bodily injury and property damage 0.11 17,941
Medical payments and other 0.06 1,864
Credit card and other (5) 0.07 6,444
Average (property damage and liability), 2004-2008 5.78 $7,864

(1) For homeowners multiple peril policies. Excludes tenants and condominium owners policies.
(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) Includes vandalism and malicious mischief.
(5) Includes coverage for unauthorized use of various cards, forgery, counterfeit money and losses not otherwise classified.

Source: ISO.