Property owners are increasingly covering repair costs as insurers close more claims without payment. The five largest U.S. home insurers did not pay out on over 44% of claims resolved last year. This figure represents a significant increase from 36% a decade prior.
National Association of Insurance Commissioners data shows 42% of all 2024 claims resulted in zero payout. Allstate reported one of the highest rates, closing nearly 50% of claims without payment.
Insurers attribute the rise to offsetting losses from frequent and severe natural disasters. Homeowners face higher deductibles that often exceed the cost of minor damages. New policies include more stringent exclusions for events such as wind and hail.