Most Common Home Insurance Claims & What To Know
Home insurance provides financial protection against unexpected damages and losses. According to the Insurance Information Institute (III), nearly 98% of home insurance claims involve property damage. While liability claims occur less frequently, they can be significantly more costly. Understanding the most common claims can help homeowners take preventative measures to minimize risks.
7 Most Common Claims:
Wind & Hail Damage (40.7%)
Strong winds, hailstorms, hurricanes, and tornadoes contribute to a significant number of insurance claims. These weather-related damages can cause destruction to roofs, siding, and windows. Although these claims are frequent, they tend to be less expensive, averaging around $13,511 per claim.
Fire & Lightning Damage (21.9%)
Fires and lightning strikes, while less common, are among the most expensive claims. With an average cost of $83,991 per claim, these events can lead to devastating property loss. Fortunately, fire protection is a standard part of most homeowners insurance policies.
Water Damage & Freezing (27.6%)
Burst pipes, leaking appliances, and frozen plumbing can lead to significant property damage. On average, these claims cost around $13,945. Preventative maintenance, such as insulating pipes and checking for leaks, can help reduce the risk.
Other Property Damage (6.9%)
This category covers various unexpected incidents, such as a tree falling on a house, accidental damage from vehicles, or broken windows. The cost of these claims averages $7,798.
Liability Claims (1.6%)
Liability claims occur when a homeowner is held responsible for injuries or damages to others. These claims can be costly, averaging $31,690. Standard homeowners insurance policies typically include liability protection.
Theft (0.7%)
Theft claims, though less frequent, result in an average loss of $5,024. Installing a home security system can deter break-ins and may qualify homeowners for insurance discounts.
Medical Payments & Miscellaneous Causes (0.5%)
Medical payment claims cover injuries occurring on the property. While they make up a small percentage of claims, the average cost is $13,081.
What Home Insurance Typically Doesn’t Cover
Many homeowners mistakenly believe that insurance covers all types of damage. However, policies exclude certain risks, such as wear and tear or neglect. Proper home maintenance is essential to avoid denied claims.
Common Exclusions:
Roof Leaks from Neglect: Insurance may cover sudden damage but not long-term deterioration due to lack of maintenance.
Rotting Fencing & Siding: Homeowners are responsible for maintaining their fences and siding. Damage due to neglect may not be covered.
Pest Infestations: Damage caused by termites, rodents, or other pests is often classified as a maintenance issue rather than an insurable event.
Garage Door Malfunctions: Normal wear and tear on garage doors is not covered unless damage results from an accident or storm.
Determining the Right Coverage
To choose the right level of coverage, homeowners should assess their risk factors, including location, home features, and property value. With millions of claims filed annually, being well-protected can help homeowners avoid financial burdens in case of unexpected events.