Originally Posted by lmspeir
Just trying to get an estimate of the number of homeowner insurance claims filed with insurance companies on an annual basis.
Or, another way to look at it - what are the odds I will have a claim against my homeowner's this year?
I'll let you in on a little secret, insurance pricing is based upon risk. The majority of your premium goes to pay for the risk, with a small amount added for administrative costs and profit. Figure 10%-20% is for the administrative costs and profit. That may be slightly higher or lower depending on the size and efficiency of the insurer.
So, your premium is roughly proportional to the risk.
The real question is, if you do not have homeowner's insurance, can you afford to pay to replace your home and furnishings, and/or pay the liability claim that you may incur?