LexisNexis Launches AI Model to Assess Home Insurance Risk by Location
LexisNexis Risk Solutions released Location Intelligence for Home, an AI system that predicts property risk for U.S. home insurers by analyzing location-based data and historical claims patterns. The tool uses neural network modeling trained on industry-wide claims data to score individual properties across six perils: hail, wind, weather-related water, non-weather water, freeze, and collapse or falling objects.
Properties with the highest Location Intelligence scores are 20 times more likely to have a claim than those with the lowest scores, according to the company. The system integrates into LexisNexis Smart Selection, an automated platform that flags risks and applies business rules during underwriting.
Why Carriers Need Better Risk Assessment
Home insurers face mounting pressure from rising repair costs and more frequent catastrophic events. Traditional underwriting methods that rely primarily on exterior inspections and weather data miss critical risk drivers.
Non-weather water damage alone accounted for 24 percent of all home claims in 2025, yet exterior inspections typically fail to identify this exposure. Weather-related water claims represented only 4 percent of all claims during the same period.
"Traditional property risk models were built around the signals that were easiest to get, not necessarily the ones most predictive of loss," said Meredith Barnes-Cook, senior principal at Datos Insights. "Non-weather water alone represents nearly a quarter of all home claims - a risk driver that exterior inspections and weather overlays routinely miss."
How the System Works
Location Intelligence delivers risk scores based on six perils and can incorporate roof condition grades for additional insight. Underwriters see granular risk details within their existing workflows, promoting consistency across teams without requiring them to build and maintain in-house models.
The system also provides portfolio-level visibility, helping carriers evaluate and manage risk across their entire book of business.
George Hosfield, vice president of home insurance at LexisNexis Risk Solutions, said the tool gives insurers "a more consistent way to assess personal property risk using deeper, location-based insights within the workflows they already use." He added that understanding where claims are more likely to occur also lets carriers work with consumers to mitigate risks before losses happen.
LexisNexis will file Location Intelligence as a predictive model in various states over the coming months for use in home insurance underwriting and rating workflows. The company previously rolled out a similar system for commercial insurance.
For insurance professionals, AI for Insurance and AI Data Analysis resources can provide deeper context on how these technologies apply across the industry.
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