IRC Reports Substantial Cost Increase in Homeowners Claims

The cost of homeowners insurance claims has been increasing at twice the rate of inflation despite significant declines in recent years, according to a new report from the Insurance Research Council (IRC). The average claim payment per insured home* countrywide rose from $229 in 1997 to $625 in 2011, before falling to $442 in 2013. Even with the recent decline, average claim payments per insured home have increased at an average annualized rate of 5.0 percent since 1997. During the same period, inflation average approximately 2.4 percent.