Did you know that in 2022, private property and casualty insurers wrote $17.4 billion in direct written premiums for personal property insurance and paid out $9.9 billion in direct claims incurred?
Knowing key home insurance statistics like this can help you identify areas of improvement during claims management, learn the shifting needs and preferences of policyholders, understand new risks and trends, and allow you to make data-driven decisions.
In this article, we uncover 30 home insurance statistics that you should know to serve policyholders better and enhance your claims management strategies.
We’ve broken these statistics down into five primary categories:
- Industry Overview Statistics
- Property Damage Statistics
- Adjuster-Specific Statistics
- Catastrophic Event Statistics
- Policyholder-Specific Statistics
Let’s get into it.
1. Industry Overview Statistics
The following general industry stats highlight the shifting landscape of home insurance in Canada, from rising premiums to the growing financial impact of insured losses.
- Home insurance price increases were up 7.66% from January 2023 to January 2024. (Insurance Institute)
- During the summer of 2024, Canadians submitted approximately 228,000 insurance claims. (Insurance Bureau of Canada)
- Five of the worst years for insured losses in Canadian history have occurred within the last eight years (2016, 2020, 2021, 2022 and 2023). (Insurance Bureau of Canada)
2. Property Damage Statistics
The following property damage statistics reveal the common risks Canadian homes face, including fire and water damage.
- Between 2012 and 2021, nearly 95,000 arson incidents were reported by CPS, with 38% occurring in private residences. (Statistics Canada)
- The leading cause of fires in Canadian homes is cooking equipment. (Reader’s Digest Canada)
- In the first two weeks of January 2024, a Vancouver insurance company saw a 191% rise in frozen-pipe insurance claims compared to the same period in January 2023. (CTV News)
- Over the past ten years, smoking materials have been responsible for 205,332 structural fires in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, and New Brunswick. (Fire Fighting)
- Water damage ranks as the top cause of property damage, with an annual cost of around $1.7 billion. (TD Insurance)
- One in 10 fires are associated with mechanical or electrical failures. (BelairDirect)
- Electrical fires account for 20% of all fires in Canada. (Make it Right Holmes)
- Approximately 3,300 home fires each year are caused by extension cords (ESFI)
- From 2017 to 2021, an average of 510 structural fires per year were caused by heating equipment in Ontario. (Government of Canada)
3. Adjuster-Specific Stats
At Accomsure, we’ve conducted a handful of polls throughout the past year to gather insights directly from Canadian home insurance adjusters on the challenges they face and the strategies they find most effective in managing ALE claims. Here are some of the key findings:
- 40% of adjusters found proactive communication and partnering with ALE experts to be the most effective strategies for improving the efficiency of displacement claims, while 20% favoured insured self-service options.
- 50% of adjusters identified policyholder communication and finding short-term housing as the biggest challenges in managing ALE for home insurance claims.
- 67% of home insurance adjusters report that water damage is the most common type of claim they handle.
- 50% of adjusters identify delays in home repairs as the leading cause of delays in finalizing ALE claims, with the other 50% citing difficulty finding housing.
4. Catastrophic Event Stats
According to the Internal Displacement Monitoring Centre, 672,000 policyholders were displaced due to a natural disaster from 2008 to 2023.
Here are some additional statistics about catastrophic events in Canada that directly impact the home insurance industry:
- Summer 2024 saw over $7 billion in insured losses from floods, fires and hailstorms. (Insurance Bureau of Canada)
- Insured damage from severe weather events reached over $3.4 billion in 2023 (Insurance Bureau of Canada)
- Canada’s 2023 wildfire season was the most destructive season ever reported. (Government of Canada)
- A typical storm or flood that cost around $8 million in the early 1970s now costs over $110 million. (Climate Institute)
- The 2023 wildfires displaced a total of 185,000 people in Canada. (CBC)
- Flooding is Canada’s most common natural disaster, causing approximately $1.5 billion in property damage annually. (Government of Canada)
- In 2023, an extraordinary amount of land was burned during the wildfire season, surpassing the typical annual area by over seven times and marking a 647% increase compared to the 10-year average. (Government of Canada)
- Over the past decade, annual costs from natural disasters have risen by $400 million. (Natural Resources Canada)
- Over 25% of individuals impacted by major natural disasters must evacuate their homes. (Statistics Canada)
- Over 20% of Canadians report that they, a family member, or a close friend have faced property damage from natural disasters. (CTV)
5. Policyholder-Specific Statistics
The following policyholder statistics reveal critical gaps in coverage, highlight the challenges of affordability, and underscore the priorities homeowners consider when selecting insurance.
- 80% of Canadian homeowners lack sufficient insurance. (Insurance Portal)
- About 1.5 million homes across the country cannot get affordable flood insurance due to high risk. (CBC)
- 22.4% of Canadians say they choose their home insurance based on customer service responsiveness. (Hello Safe)
- 84.5% of policyholders say they are satisfied or very satisfied with their current home insurance. (Hello Safe)
The Importance Of Knowing Home Insurance Statistics
With these home insurance statistics in mind, you now have a clearer picture of shifting risk patterns, what drives policyholder satisfaction, and the growing needs for policy coverage.
For adjusters looking to streamline their work without neglecting policyholder satisfaction, lean on Accomsure for support.
Accomsure provides seamless ALE management solutions, helping displaced policyholders with their immediate needs post-displacement.
Contact us today to learn more about how we can support you and your policyholder should displacement occur. We’re here for you.