The five largest U.S. home insurers paid nothing on more than 44% of resolved homeowners and renters claims in 2024, up from 36% a decade earlier. Zero-payout claims include claims below deductibles, withdrawn claims and damage not covered by policies.
State Farm, Allstate, Liberty Mutual, USAA and Farmers have tightened claims handling amid postpandemic losses, higher catastrophe losses and larger deductibles, a WSJ analysis of regulatory filings found.
Insurers told WSJ that they investigate claims and pay amounts owed under policies fully, fairly and promptly. USAA said fewer than 6% of its claims were denied after accounting for claims below deductibles, withdrawn claims and claims later reopened and paid.
Higher deductibles account for part of the increase. Insurers have raised standard deductibles, added separate wind and hail deductibles in high-risk areas and shifted some deductibles from fixed amounts to a share of a home’s value.
Florida had the highest zero-payout rate in 2024, with insurers paying nothing on more than two in five homeowner claims. Insurers said Hurricane Helene and Hurricane Milton increased claims for flood damage that standard home policies did not cover.
Insurers declined payments on more than 95,000 Florida homeowner claims tied to Hurricane Milton. Slide Insurance paid nothing on half of the claims it resolved in 2024, up from 26% in 2022, according to WSJ’s analysis.