Claims & Expenses

Severe Winter Weather

In 2015, losses related to weather events represented nearly 40% of all loss costs, across all lines, for the PURE membership. This includes claims caused by cold temperatures, snowfall, hail, wind, rain, lightning and wildfire. For comparison, weather-related claims accounted for only 28% of total loss costs in 2014.

Winter weather was by far the most damaging of all perils in 2015 due to record-setting conditions. Parts of the Northeast saw snowfall totals in excess of 110 inches between the end of January and March. In addition, February marked one of the coldest months on record for much of the Northeast and Midwest. Many major cities saw stretches of more than 35 days of subfreezing temperatures with minimums of -30 degrees reported as far south as Kentucky.*


These extreme conditions led to significant losses
from burst pipes and ice dams.


The average cost of a frozen burst pipe claim for PURE members in 2015


The average cost of an ice dam claim for PURE members in 2015

Investments In Loss Prevention

Getting back to normal after a loss means not worrying that it could happen again. That’s why our Homeowners policy includes a $2,500 Loss Prevention Benefit—money that members can use to make their homes safer or better equipped to prevent the loss from recurring.

In 2015, Loss Prevention Benefits paid to members more than doubled compared to 2014. Since inception, these payouts total nearly $1 million.

Most Common Investments

PURE employs a team dedicated to helping members take advantage of our Loss Prevention Benefit. Our Member Advocates® reach out to members following qualifying claims to explain the benefit and the many ways it can be used to help make their homes safer. In 2015, the most common loss prevention methods that PURE helped to fund were:

Most Common Investments
For help with these and many more loss prevention measures, contact the PURE Member Advocate® at

Costliest Causes of Loss

The table below shows the top 5 most costly causes of loss to the membership across all lines of business in 2015. The percent of cost reflects what PURE has paid, or expects to pay, on claims.

While water, winter weather, and fire combined make up only 17% of all claims handled in the year, they represent nearly 60 percent of all claim costs for the year, a clear indication of the gravity of these risks.

Cause Percent of Total Cost Percent of Total Claims Average Cost per Claim
Water (non-winter weather related) 22.4% 10.7% $38,000
Winter Weather 21.1% 6.0% $64,000
Auto Collision 16.4% 36.7% $8,000
Fire 14.1% 0.6% $429,000
Hail 6.4% 3.8% $31,000
Top 5 Causes 80.3% 57.8% -

Percent of Large Losses

When looking at all large losses reported in the year (those where PURE paid in excess of $100,000 per occurrence), 70% were caused by winter weather, water, or fire. In many of these claims, not surprisingly, the home was unoccupied at the time the loss occurred. When no one is there to notice it, water can run undetected for days and fire can spread quickly, resulting in considerable damage to a home and contents.

Claims Count By Year

While premiums grew by 40%, the number of claims grew by 58% in 2015. This was primarily driven by the severe weather events that impacted much of the country throughout the year.

PURE's Combined Ratio

An insurer’s combined ratio measures losses and expenses against premium to help
evaluate underwriting results. A combined ratio below 100 typically indicates profitability.
However, a growing insurance company may show statutory underwriting losses even
with a combined ratio under 100 (see Deferred Acquisition Costs).
Management monitors three combined ratios to evaluate operating performance.

Gross Combined Ratio

Gross Combine Ratio

This measure indicates whether or not an insurer is collecting enough premium to cover its claims obligations and operating expenses prior to the cost/benefit of reinsurance.

Net Combined Ratio

Net Combine Ratio

This measure indicates profitability net of the cost/benefit of reinsurance. It reflects items included in the statutory P&L.

Adjusted Combine Ratio

Adjusted Combine Ratio

This measure adjusts the Net Combined Ratio to reflect the benefit of member surplus contributions, which go directly to PURE’s balance sheet. We believe that this measure provides the most accurate picture of PURE’s claims-paying ability and overall economic performance in any given year.

Net Promoter Score

Our annual member survey was issued in early 2016. We are delighted to share that our NPS has once again increased. Our NPS of 66 ranked among the highest in any financial service segment, and it’s even higher among members who have experienced our claims service.*

*Source of non-PURE data: Satmetrix 2014 U.S. Consumer Benchmark Study. PURE’s NPS data is collected through surveys, including an annual member survey and a survey that is distributed after every claim is closed, regardless of whether a payment was made.