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The Top 5 Homeowners Insurance Claims

The Top 5 Homeowners Insurance Claims
Getting homeowners insurance is a virtual necessity. It is usually required if you are going to hold a mortgage on your home, and even if it weren’t – it’s the best way to protect what is often life’s biggest financial investment.
As with any form of insurance, you always hope you never have to actually use it. But it’s also good to know how it is most likely to help you out in a pinch. Inquiring minds want to know – what are the most common types of home insurance claims?

1. Storm Damage From Wind & Water
Florida is a rather stormy state. Hurricane season lasts for around half the year, and there are a good deal of tornadoes and severe thunderstorms to be concerned about as well. In fact, around 50% of all home insurance claims arise due to wind, water, and other weather-related events.

Wind can rip off shingles or slam projectiles into your home’s roof, walls, or windows. Water can leak in and destroy drywall, wood flooring, furniture, electronics, and more. And leaky pipes are another source of expensive water damage.

2. Home Fires
Although only the second most common type of claim, home fires are easily the most expensive claim-type on average. Fires may start due to a lightning strike, a wiring problem, a gas leak, or a variety of other causes. Most of them are covered by homeowner’s policies.

Fire can result in a total loss of your building or in extensive damages that may run over $50,000 to repair. Few people can afford to pay out of pocket to make things right again after a house fire.

3. Miscellaneous Property Damage
Whether you own your own home or rent, protecting the contents of your domicile – personal property, is a key reason to get homeowners insurance. Around 5% of claims involve property damaged for miscellaneous reasons.

Also, damage to your main dwelling or covered detached structures may occur for other miscellaneous reasons such as falling tree limbs, window panes shattered by a baseball, or a visitor accidentally backing his truck up into your garage.

4. Liability Claims
While liability claims account for only around 2% of all claims on homeowner’s policies, these can be especially costly incidents. On average, they reach over $25,000 – which is not surprising given how expensive modern medical care can be.

If you own a dog, especially a breed considered “aggressive,” the chances of needing this extra liability coverage is even greater. But anyone who has guests of workers over to their house on occasion should make sure they are covered.

5. Theft Claims
Since jewelry and other high price tag items can be covered, at least in part, by homeowners insurance, property stolen during home burglaries may sometimes be cause for filing a claim.

Raising your limits on personal property protection, providing your insurer with a detailed inventory and valuation of covered items, and installing a home security system can help get you the most coverage against theft at the lowest possible premium.

As a homeowner, you need to be concerned about all the possible types of damage or loss that could affect your home and its contents. A good homeowners insurance policy will help give you peace of mind, knowing that the most common types of damage coincide with the most common types of claims.

To learn more about how homeowners insurance works, or for a free quote, contact Flagler County Insurance Agency today!