But since 1980, homeowners has achieved poor financial results.
Catastrophes certainly bear much of the blame.
However, this study concludes that part of the problem is a pattern of enhancements insurers have made in their policy forms. The number of types of loss insured under a typical policy increased, contributing to an acceleration in losses that has outstripped premium growth. Over the years, insurers repeatedly broadened the homeowners coverages to address growing customer needs, increase market share, and meet competition. But many coverage enhancements provided questionable advantages for insurers. The enhancements also made the programs more complex and added to their cost.