GuideA plain-language guide with a worked example
Homeowners Claims by Cause of Loss
Wind and hail are the most common homeowners claims. Fire is rare but by far the costliest. Water damage sits in between. These are industry averages, not a prediction of what your claim will pay.
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The short answer
Homeowners claims fall into a few big groups, and they behave very differently. Some are common but modest. Some are rare but devastating. The Insurance Information Institute (III) publishes a table of both measures by cause of loss, using data from ISO, a Verisk Analytics business. This page picks out the figures that matter most for a homeowner and explains what they do and do not tell you.
Read them as a picture of the whole industry. They are not a quote, and they are not a promise about what your own claim will pay.
Which years, and what the numbers measure
The figures below are weighted averages for 2019-2023, as III reports them. They cover homeowners multiple peril policies (the common HO forms). They leave out tenants and condo policies, and the table excludes Alaska, Texas and Puerto Rico.
Both of these measures matter. Frequency is how many claims are filed per 100 house years, the industry's unit for policy coverage over a year. Severity is the average amount paid per claim. III notes that severity excludes the insurer's own adjusting expenses. In the most recent year of the table, 5.3 percent of insured homes had a claim, which shows how unusual it is to file at all.
The causes, side by side
Wind and hail are the most frequent cause. The table shows 2.80 claims per 100 house years, and the average payment was $14,747. Roofs, siding and windows take most of that damage.
Water damage and freezing come next, with 1.50 claims per 100 house years and an average payment of $15,400. III says this category includes mold damage, if covered. Burst pipes, appliance failures and sudden leaks are typical.
Fire and lightning are far less common, at 0.23 per 100 house years, but the average payment was $88,170. That is the largest of the property causes by a wide margin.
Theft is both uncommon and smaller, with an average payment of $5,524. Liability claims, where someone else is hurt or their property is damaged, averaged $29,880. Across every cause, the average payment was $17,059.
What drives the size of a claim
An average hides a huge range. Several things move an individual claim up or down.
- How much of the house is affected. A small roof repair and a full replacement fall in the same cause category.
- How fast the damage was stopped. Water that runs for days costs far more than water shut off quickly. Mold and rot follow slow responses.
- Local labor and material prices. The same repair costs more in some metro areas than others.
- Your policy terms. The deductible, any separate wind or hail deductible, the coverage limits and whether the policy pays replacement cost or actual cash value all change the check. See depreciation explained.
- Hidden damage. Wet insulation, subfloors and wiring often turn up after demolition, which is why supplements exist.
What is often not covered
Standard homeowners policies commonly exclude flood, earth movement such as earthquakes and sinkholes, and damage from wear, neglect or gradual leaks. Sewer and drain backup usually needs a special endorsement. These exclusions are the reason so many surprised homeowners find a claim denied even though the damage was real. The categories in the III table only count claims that were paid under covered perils. Your policy is the final word, and is my damage covered? walks through the common questions before you call.
Worked example
Suppose a homeowner finds a damp ceiling stain after a heavy storm. The cause matters, because it sets the path. If wind lifted shingles and rain came through the opening, the loss is likely handled as wind damage, and many policies apply a separate wind or hail deductible. If instead a supply line in the attic failed suddenly, it falls under water damage, which the table shows is less common than wind but still frequent.
The homeowner reads the table and sees that the average for water claims is a figure in the mid-range dollar figure. That does not mean the claim will pay that amount. A small, quickly dried leak might come in far below the average, and the deductible might swallow much of it. A leak that ran for weeks inside a wall could come in well above. So the useful move is not to compare to the average. It is to document the actual damage, get the drying started, and ask the insurer which deductible applies and how the loss is being classified. If the cause is labeled as gradual seepage and denied, that is worth challenging in writing with evidence.
What to do with this
If you have damage right now, do not wait to see what category it lands in. Stop the source, protect the home, and photograph everything. Start with water damage: the early hours if water is involved. Keep records using the claim documentation checklist. If the insurer's estimate looks low or misses items, use the claim dispute and supplement letter.
If you are only shopping or reviewing coverage, use the table to see where your risk lies. A region with hail may justify checking the wind and hail deductible. An older home with aging plumbing may justify water backup coverage.
This page is general information and not insurance or legal advice. Policies, states and carriers differ.