Home insurance is a type of property insurance that covers damage and losses occurred to the individual’s home along with assets and furnishing in the home. It also covers interior or exterior damages resulting from accidents in the home or on the property. Home insurance policy has a liability limit which defines the amount the insured person will get if an unfortunate accident occurs. The acts of God such as floods or earthquakes are generally excluded from standard homeowner’s insurance policies.
- As per the report, The global home insurance market was valued at around USD 231 billion in 2021 and is expected to register a CAGR of approximately 7.5% during the forecast period 2022-2030.
- The rising adoption of advanced technologies in homes is likely to exhibit significant growth opportunities for home insurance providers.
- Increasing incidences of human-made disasters are driving the need for home insurance policy solutions to protect the home against damages.
Home Insurance Market Insights
The number of people opting for home insurance coverage policy is ever increasing due to its superior benefits such as coverage against human-made disasters such as riots, strikes, terrorist attacks, and thefts; coverage against natural calamities including tsunamis, typhoons, and earthquakes; coverage for assets; protection against legal liabilities and temporary living expenses.
Rising incidences of natural disasters and man-made hazards particularly thefts and burglaries have resulted in high demand for home insurance policies globally. Around 3,370 burglaries happen in the US every single day. The number of thefts and burglaries happening in residential houses is increasing across the globe and thus, driving the need for home insurance coverage policies.
The number of climatic disasters is also increasing due to economic development along with the influence of climate change caused by humans which led to huge disasters and thus, is propelling the growth of the home insurance market.
Increasing consumer spending on the construction of new houses and renovation of existing homes particularly in developing countries coupled with rising per capita disposable income and low-interest rates are expected to bolster the growth of the home insurance market significantly in the coming years.
The rapid adoption of advanced technologies in the home sector including artificial intelligence, data analytics, geo-location, and application program interface is likely to create lucrative opportunities for the players operating in the global home insurance market during the forecast period 2022-2030.
The spread of covid-19 witnessed a negative impact on the growth of the home insurance market in the year 2020 as many people delayed their decision of buying a home due to increased uncertainty pertaining to employment and income. Liquidity crunch and financial instability affected the need for home insurance policies. However, this uncertain outbreak resulted in a long stay at home, so the home insurers can introduce new policies supporting the needs of the customers.
However, the lack of awareness pertaining to the existence of the home policy hampers and its associated benefits is affecting the market growth.
Based on coverage type, home insurance policies can be categorized as comprehensive coverage, content coverage, dwelling coverage, and other optional coverage. The comprehensive coverage type held a majority share in the global home insurance market and is projected to register healthy growth during the review period.
Based on the end-user, the home insurance market can be segmented into landlords and tenants. The landlord’s segment accounted for the largest market share in 2021 and is projected to witness significant growth during the review period. Increasing incidences of both natural disasters and human-made disasters are driving the need for home insurance policies among landlords.
Geographically, the global market can be segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. The market in North America accounted for the largest share in 2021 and is expected to register significant growth in the coming years. The regional market growth can be attributed to the increasing severity of climate-related weather events, particularly in the US. Additionally, the high adoption rate of advanced technologies in homes is likely to propel the market growth in the region substantially.
The market in Europe accounted for a substantial market share in 2021 and is expected to exhibit considerable growth during the review period. Germany, the UK, and France are the key revenue-generating countries in the region. The regional growth can be primarily attributed to the increasing adoption of advanced technologies in homes to make smart homes and increasing residential construction activities in Eastern European countries.
The home insurance market in the Asia-Pacific region is expected to register healthy growth in the coming years on account of increasing product demand, particularly in China, Japan, and India. The rising number of households in developing countries on account of rising per capita disposable income coupled with increasing awareness about home insurance policy benefits are the key factors driving the regional market growth.
Some of the key players operating in the global home insurance market include ADMIRAL, ALLIANZ, Allstate Insurance Company, AXA, American International Group, Inc., Liberty Mutual Insurance Company, Chubb, PICC, State Farm Mutual Automobile Insurance Company, and Zurich among others.