Americans who file claims for home insurance have a “near flip-of-the-coin chance” that their insurance companies will actually pay up, according to a new report.

The five biggest home insurers collectively declined more than 44 percent of claims resolved in 2025, according to data compiled inWall Street Journal analysis.

The insurers include Allstate, State Farm, Liberty Mutual, United Services Automobile Association, and Farmers Insurance. A decade ago, the chance of a claim being declined was reportedly only 36 percent.

One of the primary drivers of the increase in nonpayment outlined in the research was an effort among insurers to make up for years of losses, due in part to an increase in catastrophic weather, such as wildfires, damaging hail, and hurricanes, the outlet reports.

A method the companies have used to make up those losses is raising deductibles, meaning homeowners have to pay more before insurance coughs up. Some of those increased deductibles target specific events like hurricanes or hailstorms.

In some cases, companies have shifted how deductibles are calculated, basing the number not on a set dollar amount but on a percentage of a home’s value.

Consumer choice is also playing a part in reduced payouts. Insurance companies will allow customers to pay less each month so long as they select plans that have higher deductibles. While this helps homeowners save money during stable times, when disaster comes they may find themselves shelling out more than they expected from their own pockets.

The WSJ’s report found that while nonpayment at the largest companies was on the rise, smaller insurers — like Erie Insurance — actually paid out on relatively more claims than the company did a decade earlier.

A spokesperson for United Services Automobile Association told the WSJ that its analysis was misleading, citing a lack of context for why claims went unpaid. The spokesperson said that with that context, fewer than 6 percent of its claims were denied last year.

A State Farm spokesperson also told the newspaper that “selective interpretations of data do not paint an accurate picture of our level of customer care.”

The Independent has requested further comment from the top five insurance companies cited in the report.

A contributing factor to non-payment appears to be location, according to the paper.

Florida insurers had the highest rate of nonpayment, with claims for more than two in five homeowners in 2024 left unpaid.

The back-to-back hurricane events — Hurricanes Helene and Milton — in 2024 likely account for the increase in nonpayments as homeowners likely were rejected for claims on flood damage, which is not covered.

Other states that had notably high nonpayment rates were Texas — where hail and flooding have been plaguing homeowners — and California, where wildfires and mudslides can cause catastrophic damage to homes.