The 6 Most Common Homeowners Insurance Claims

A large oak tree crushing the side of a house, meant to signify and insurance claim matter.Most people who own a home carry homeowners insurance as it’s a required condition of mortgage ownership. But beyond the necessity of it, insurance provides you with coverage for damages that could otherwise bankrupt you or put you in a tight financial bind. The cost of premiums is nothing compared to the aid you’ll receive on a covered claim. To truly understand its importance, let’s review some of the most common homeowners insurance claims.

1.     Wind and Hail Damage Claims

Damage caused by strong winds and hail makes up an average of nearly 40% of homeowners insurance claims, according to the Insurance Information Institute. Damage caused by hurricanes, thunderstorms, and tornadoes generates a wealth of wind-related claims. The average cost of repairs for these damages tops $11,000, whereas the average price for homeowners insurance is $1,765 a year, based on NerdWallet’s analysis, proving that homeowners insurance is a wise investment that has the potential to pay for itself.

2.     Water and Freezing Damage

Freezing pipes are a common occurrence in New England, and it can lead to serious leaks, which can result in severe water damage. Furthermore, a leaking roof can make way for snowmelt or rain to compromise your attic, leading to water damage in addition to mold and mildew. Similar to wind and hail damage, the cost of these repairs averages above $11,000. In addition to a homeowners policy, flood insurance will help you obtain more comprehensive coverage for potential water damage.

3.     Fire and Lightning Claims

Not only is lightning and fire damage one of the most frequent insurance claims, but it is by far the most expensive – fire damage results in an average of almost $80,000 per claim. If we account for the average homeowners insurance cost, that is roughly 45 times the cost of your yearly insurance premiums. Fortunately, while insurance can cover the damages, there are plenty of steps you can take to keep you and your family safe.

4.     Miscellaneous Property Damage

Other forms of property damage, such as a tree falling on your roof, a truck backing into your garage, or a baseball shattering a window, account for the remainder of claims related to physical damage to a home. Since this covers a variety of situations, it’s difficult to provide an average estimate of the costs, but one could speculate that it is in the thousands, especially if your roof or framing is involved.

5.     Homeowners Liability Claims

Liability claims aren’t nearly so common as the aforementioned claims, but they still weigh in at the top of the list. Liability claims pertain to compensation toward other people, such as if a guest becomes injured on your property as a result of a slip and fall or has their property damaged while visiting your home. Since medical costs or repair costs are the main focus of these claims, they can become quite expensive, averaging nearly $30,00 per claim.

6.     Household Theft Claims

Theft only accounts for 1% of claims but still rounds off the top six. Theft isn’t quite as expensive as the other claims, but on average, it still costs roughly $4,500. However, there is much you can do to mitigate the risks of theft, such as installing a home security system, which may even grant you a discount on your premium depending on your insurance carrier.

Brushing up on some of the most common homeowners insurance claims is beneficial when reviewing your coverage and taking steps to mitigate risks. It’s always wise to educate yourself on your insurance’s limits and whether you have the utmost coverage for your needs. At TJ Woods Insurance, our agents can find the best homeowners insurance for you and inform you of any endorsements that would provide you with more comprehensive coverage. If you need the help of a knowledgeable insurance agent, contact us today.