Be prepared for the most common homeowners insurance claims
Protecting your home, your valuables, and your investments should be your top priority. Homeowners insurance helps you do just that. Such policies can help protect your home against a variety of damages. Before you take out a policy or update your current one, however, you might want to find out exactly what the most common claims are—and how you can best protect your home against such threats.
The weather is a home’s worst enemy, according to recent reports. More than half of all homeowners insurance claims are due to weather-related damages. Different parts of the United States see weather damage in various forms. For example, the Midwest is prone to hail damage. Hail is the most common, and the costliest, claim in the Midwest. The northeast and the south are more prone to water and high wind damage.
Exterior Wind Damage
Damage to the exterior of the home by wind is, by far, the most common homeowners insurance claim. According to Insurance Journal, wind damage accounts for about 25 percent of all homeowners insurance claims. The wind from hurricanes, heavy storms, and tornados are the most common claims due to the widespread nature of such damage. The south, for example, is prone to such damage during the summer months, when tornados and hurricanes are more common. The northeast sees heavy wind damage claims during the winter months when winter storms and blizzards bring heavy winds into the region.
Non-Weather-Related Water Damage
The second most common claim is water damage not associated with a weather event. These claims account for about 19 percent of all insurance claims. Plumbing, pipe, and appliance issues account for the majority of these claims. In the Midwest, sump pump and sewer issues are common causes of water damage claims. The northeast is subject to problems with bursting pipes, as temperature fluctuations in poorly insulated homes can erode the integrity of plumbing over time.
Water Damage from a Weather Event
Water damage from weather events accounts for around 11 percent of all homeowners insurance claims. Water damage can include everything from flash flooding to melting snow and ice, to damaged roofs from heavy storms or the mere weight of snow and ice. In areas that see heavy snowfall, roof damage is the most common claim when discussing water claims. In states that see a great deal of rain, flash flooding is a common claim, as well.
Thefts
Homeowners insurance also covers the value of items inside your home that are damaged or stolen. Theft and burglary account for around 6 percent of all insurance claims. Homeowners insurance will help cover the cost of break-in repairs, including damage to doors, windows, or floors. It will also help replace items that were lost and stolen if you have proper documentation of those things. Theft claims can be especially tricky, according to experts, and a home inventory should be kept in case this type of claim is needed.
Now that you know what the most common claims are, you are ready to sit down and look at your current policy. Ensure you are covered for these common threats. If you feel like you need to update your policy, check in with a licensed agent who can help build a policy that can help protect you against the unexpected.
Equal Housing Lender