Most Common Home Insurance Claims

Home insurance is a necessity for most people as it protects your assets and prevents financial loss. When applying for a mortgage, lenders often include homeowners insurance as part of the requirements. You need to present proof of insurance until your loan is paid.

Having home insurance is a smart move in case your property sustains damage or loss. It’s now easier to file a homeowners insurance claim and receive settlement checks to cover the damage.

Various problems and situations are responsible for the majority of homeowners insurance claims. In 2020, the average home insurance claim payout was around $14,000. In this blog, we will discuss the most common home insurance claims and some tips for avoiding them.

1. Wind and Hail

The most common cause of home insurance claims is natural disasters. Mother nature can be very unpredictable and sometimes destructive. Hurricanes aren’t the only ones that can harm your property. Windstorms and hail can also cause severe damage like broken windows and siding.

In fact, 45.5% of homeowners insurance claims are related to wind and hail. According to the Insurance Information Institute, almost 1 in 50 homes report wind damage every year.

To avoid making a claim, you can take proactive measures through regular maintenance and inspections. Being foresighted will allow you to prepare against wind and hail year-round.

2. Fire Damage

Fire can be one of the more destructive and expensive causes of home insurance claims. According to the National Fire Protection Association, an average of 346,800 residential fires occur each year due to different reasons. The main causes include electrical issues, poor wiring, and candles.

When it comes to fire damage, homeowners insurance covers repair costs on the main property and unattached structures. Fire-related claims are the most expensive, which averages $77,340 per claim.

Even if your home insurance covers fire damage, being prepared is still essential. Here are some tips to help you prevent fires at home:

• Never leave cooking unattended.
• Keep a fire extinguisher in an accessible location.
• Set up smoke detectors and carbon monoxide detectors.

3. Water Damage and Freezing

Aside from fire, water is a big threat to your property and belongings. To protect your assets from water-related problems like burst pipes, ice dams, and roof leaks, homeowners insurance is the answer.

Every year, at least 1 in 50 homes face water damage or freezing issues that lead to an insurance claim. This accounts for 29% of total homeowners insurance claims. Keep in mind that damage from storm surges or lack of maintenance is not covered by home insurance. 

4. Bodily Injury and Property Damage to Others

Did you know that homeowners insurance provides coverage for bodily injury or property damage to others? If someone gets injured on your property, you become liable to pay for the injuries and legal fees. Personal liability coverage on your home insurance can cover these costs.

Accidents like falling on wet stairs, slipping, and dog bites are usually covered by your insurance policy. On average, only 1 in 1,425 homes file liability claims every year. You may consult your insurance agent on how you can include personal liability on your home insurance plan.

5. Break-ins and Theft

Homes are often targets for theft, burglary, and vandalism. Being a victim of break-ins can cause both financial and emotional distress. But the good news is these outsider threats are often covered by homeowners insurance policies. 

While theft is common, insurance claims related to theft are surprisingly less frequent. Only 1 in 525 homeowners make a claim and seek reimbursement for stolen items. If you’d like to reduce your risk of theft and vandalism, follow these steps:

• Install security systems and motion detectors.
• Set up bright security lights.
• Always lock all doors and windows.
• Keep valuables out of sight.
• Use security film on sliding doors and windows.
• Install a privacy fence around the perimeter.
• Remove vandalism as soon as possible.

Conclusion

Now that we’ve shed some light on these common home insurance claims, it’s time to request a quote from your local agent. At Local Retirement Group, we understand that there’s no one-size-fits-all insurance. That’s why our goal is to help you get the best and most customized coverage you need. Shopping for homeowners insurance has never been easier. Don’t hesitate to  contact us for more details.