The luxury property insurance claims market has seen a steady increase in recent years, with the value of claims increasing from $3.2 billion in 2018 to $3.7 billion in 2020. This growth is largely attributed to the increasing number of high-value properties and the rising costs of insurance premiums. The high-value properties are often located in areas that are prone to natural disasters and other types of catastrophic events.
As a result, insurers are increasing their premiums to cover the costs of potential claims. The majority of luxury property insurance claims are for homes, with the average claim amount increasing from $7,200 in 2018 to $7,800 in 2020. Claims for commercial properties have also increased, with the average claim amount growing from $6,800 in 2018 to $7,400 in 2020.
Luxury Property Insurance Industry
$70 Billion
Property Damage Claims in 2020
$38.7 Billion
Increase of Property Claims from 2015 To 2020
19.38% Increase
Luxury Relocation Market
$5.5 Billion
The most common cause of luxury property insurance claims is fire, accounting for nearly 40% of all claims. Wind and hail damage made up nearly 20% of all claims, while water damage and theft accounted for just over 15% each.
The luxury property insurance claims relocation market is a highly competitive and rapidly growing sector in the insurance industry. According to the Insurance Information Institute, the total amount of luxury property insurance claims relocation in the United States in 2020 was estimated to be around $5.5 billion.
This market is driven by a number of factors, including the increasing cost of repairs and replacement of luxury properties, rising demand for luxury properties, and the increasing number of natural disasters and other unexpected events that can cause damage to luxury properties.
