From our previous articles you’ve already learned a lot about homeowners insurance. Or if you haven’t read them we strongly suggest to take a look at them now. Here we are going to talk about the most common claims and what we can learn from them.
First, we want to mention that in the past decade we’ve witnessed a lot of severe weather events that triggered the most homeowners insurance claims. But the weather isn’t the only thing to blame. Here’s some data:
Wind and Hail
Of course, severe weather is the number one reason for claims. Wind and hail damage accounts for roughly 30% of all homeowners insurance claims. We talk about trees falling over houses, roofs blown of by high velocity winds, broken windows and all of that kind. This can cost you a lot. If you live in a wind-free place, ignore this information. Otherwise, include this coverage in your policy.
Water damage is responsible for up to 20% of all claims. Talking about water damage we want you to know that flood damage is often not covered by homeowners insurance. You have to purchase a flood insurance policy aside from your homeowners one. Floods can cost a lot of damage, but they are not so common in general. The risk is higher if you live near the coastline but if you’re up in the mountains, you don’t get to worry that much. Water like water from your plumbing pipes and sewer can cost a lot of damage alone. Broken pipe can cause a leak and this leak can damage your floor, your ceiling, your walls, not to mention the mold afterwards. Water damage is a must in your homeowners policy.
Let’s face it you can’t sit all day watching over your house. You get out eventually. Installing security systems can help a lot. But if you want to live in peace knowing your possessions are safe you need to add this coverage in your policy. The average claim cost is around $5K. Theft represents only one percent of all claims, but you can get a discount for purchasing this coverage if you have security system installed.
Fire claims are second in frequency but they are the most expensive ones. So, we wanted to leave them for the end to talk about them a little bit more. The average claim cost is around $70k. This means fire damage is the most devastating event. The bad news is everything in your house can cause fire. If you have electricity your home is at risk of fire. The good news is that if you have a homeowners insurance policy it will cover fire damage to your home. The one thing you can do is to check if the coverage is enough. If it’s not, you know what you need to do.
These are the most common and costly homeowners insurance claims. But we recommend you to consult with insurance agent. There might be a risk in the area you live in that you don’t know about, or didn’t know you can protect from. Professional advice can be helpful, so call us now. You can check what we can offer here.