Fire Leads Losses Among Home Insurers

More than 30 percent of home insurers' losses during 2005, 2006 and 2007, including catastrophes, were attributable to fire, according to a new report on causes of loss in the line, by Wheaton, Ill.-based American Association of Insurance Services.

The report indicates the percentage and average severity of losses due to property perils and liability claims incurred by carriers that report homeowners' statistical data to AAIS.

Bodily injury is the top cause of liability loss, according to the AAIS figures.

Its latest report, AAIS said, has been expanded from previous versions to provide loss information for each state and the entire country from 2005 through 2007, as well as for the combined three-year period. The data is provided for calendar-accident years.

Three-year percentages of property loss categories for 2005-07 including catastrophes were: fire 33.1 percent; wind 18.3; water damage 14.3; hail 11.6; other property 9.6; theft 3.6; lightning 2; and freezing 2.

The claims in the period stemming from liability were: bodily injury 2.7 percent; property damage 1.1; medical payments 0.2; and all other 1.6.

The entire Homeowners Cause of Loss Report is available to insurers utilizing both the AAIS Homeowners Program and AAISdirect. For those not affiliated with AAIS, there is a $1,000 charge.

Information on acquiring a copy of the full AAIS Homeowners Cause of Loss Report is available by contacting Rick Maka, director of marketing, at rickm@AAISonline.com or 800-564-AAIS.

AAIS is a national insurance advisory organization and licensed statistical agent that develops policy forms and rating information for 24 lines of personal, commercial, farm and inland marine insurance. More than 600 property-casualty insurers use one or more of these programs.

The AAIS latest Homeowners Cause of Loss Report is posted on its AAISdirect Web service.