Property damage from water is the most common homeowner's insurance claim, followed by wind and hail, fire and lightening and theft, which all combined accounted for 98.1 percent of those claims.
As you may have guessed, fire and lightning damage are by far the most costly home insurance claims. Unfortunately, they're also one of the most common claims. Nearly 35% of home insurance claims filed are for fire and lightning damage, and each claim averages nearly $70,000.
The most common causes of home insurance claims, from an analysis of Travelers Insurance policyholders, are wind, nonweather water damage, hail, weather-related water damage and theft. Altogether, these five causes make up 77% of all homeowners insurance claims.
Standard homeowners insurance policies typically do not include coverage for valuable jewelry, artwork, other collectibles, identity theft protection, or damage caused by an earthquake or a flood.
Key Takeaways. Homeowners insurance policies generally cover destruction and damage to a residence's interior and exterior, the loss or theft of possessions, and personal liability for harm to others. Three basic levels of coverage exist: actual cash value, replacement cost, and extended replacement cost/value.
Many things that aren't covered under your standard policy typically result from neglect and a failure to properly maintain the property. Termites and insect damage, bird or rodent damage, rust, rot, mold, and general wear and tear are not covered.
#1: Wind & Hail (34% of Claims)
But while wind and hail account for more than a third of all homeowners insurance claims, they're actually not the most expensive, coming in at only $10,801 per claim on average (number four overall).
Home contents insurance covers you against loss, theft or damage to your personal and home possessions. It can also cover you if you take items out of the home, on holiday, for example. The insurance covers your own possessions and those of close family members living with you.
Dollar-amount deductible
The most common home insurance deductibles offered on average are $500, $1,000 and $1,500. A $1,000 deductible tends to be the most common choice. “Most companies have a base deductible of $500. There is usually a 10% savings to go to $1,000.
In general, there is no set amount to home insurance claims you can file. However, two claims in a five year period can cause your home insurance premiums to rise. Over two claims in the same period may affect your ability to find coverage and even lead to a cancelled policy.
You should call your insurance company immediately after you've decided to make a claim. Keep in mind that the phone call is more than likely being recorded and insurance companies are not charity organizations that just want to give you money after a loss.
An incident that results in property damage where no person is injured.
Prepare for Disaster in Advance
Preparation is key when it comes to maximizing your home insurance claim. The two main ways homeowners can ensure they're adequately prepared to deal with a disaster are to maintain a home inventory and keep updated pictures on hand.
Home insurance claims may indeed end up increasing your premiums, but it's not possible to know in advance what your next quote will be. Generally, minor incidents, such as lost or damaged possessions, are less likely to lead to a jump in your premiums than a burglary or damage to the building's structure.
Do I need proof of purchase to claim on my home contents insurance? Yes, you may have to provide proof of purchase to make a home contents insurance claim. Some contents insurance providers state in their policy wording that you can only make a claim for an item if you can provide the receipt.
Most contents insurance policies will cover your mobile phone when it's in your home, just like other personal belongings or valuables. You'll be covered for loss or damage in a fire, storm or flood, and theft too, but only for the phone itself, and not any fraudulent calls.
Insurance agent David Shaffer says it's once every 10 years, according to insurance company underwriters' studies. Homeowners claims are filed less frequently than automobile claims because houses don't move: Essentially, the event must come to the home.
Water damage to your property is usually covered as a standard feature in your buildings insurance policy. Often referred to as 'escape of water' by insurers, it can be caused by several issues, from burst pipes due to freezing temperatures, to a leaking dishwasher or an overflowing blocked toilet.