Top Six Home Insurance Claims and How to Avoid Them

Homeowners insurance is your final line of protection when your home and belongings are damaged and destroyed. Sometimes, the unexpected can happen. However, we must nip these unfortunate events before they escalate to more significant mishaps.

The facts and statistics report from the Insurance Information Institute says the average claim frequency in 2020 was 6 percent, meaning six claims were filed and paid for every 100 insured homes.

Sadly, that number is higher than recorded in 2019, meaning house-related damages are becoming more rampant. This suggests extra vigilance for homeowners to set up preventative measures to keep their abodes safe.

With that in mind, below, we’ll discover the top 6 home insurance claims and how to avoid them.

6 Home Insurance Claims and Tips to Prevent Them

Here are homeowners’ most expensive and common home insurance claims. We included their ranking based on the average cost of the claim and frequency of claim filing.

Check them out below:

Fire and Lightning

Average cost of each claim: $79,785–1st

Frequency of claim: 1 per 350 homes–5th

Tips to prevent this home insurance claim:

• Own and learn to use a fire extinguisher. The kitchen is the most common origin of house fires, so having one nearby is advised.

• Install smoke alarms. These are fire-protection devices that detect and warn homeowners when smoke is detected. Conduct a monthly check-up to review the status of your smoke alarms.

• Unplug appliances when not in use. Unplugging is especially important during storm surges and lighting, beginning with computers and phones.

Bodily injury and property damages

Average cost of each claim: $26,872– 2nd

Frequency of claim: 1 per 900 homes– 6th

Tips to prevent this home insurance claim:

• Keep your walkways clean and clear. Ensure that there is no debris or snow on the sidewalk. Also, keep toys away from hallways.
• Manage your dog. Please keep your dog on a leash when outside or make sure there are no ways out when they’re in your yard. Socialization training can help control their behavior.

Wind and hail damage

Average cost of each claim: $11,200– 3rd

Frequency of claim: 1 per 40 homes–1st

Tips to prevent this home insurance claim:

• Anchor your outdoor items. It is best to keep everything inside the house before a storm. Larger equipment like grills or furniture must be anchored to prevent them from becoming damaging projectiles during strong winds.
• Check the state of your roof. Repair any damages and ensure that no roof shingles are loose.
• Prevent tree overhang. It’s your responsibility to trim tree branches that cross your property line.

Water damage and freezing

Average cost of each claim: $10,849– 4th

Frequency of claim: 1 per 50 homes– 2nd

Tips to prevent this home insurance claim:

• Regularly clean your gutters. Blocked gutters can cause water damage to the interior and exterior of your home.
• Use downspout extenders. This allows you to divert the flow of water away from the structure and foundations of your home.
• Keep appliances off the floor. Appliances like driers, washers, and other heavy-duty electrical equipment should be elevated.
• Activate your sump pump regularly—free your basement from water deposits.

1. Other forms of property damage

Ave. cost of each claim: $6,598– 6th

Frequency of claim: 1 per 170 homes– 3rd

Tips to prevent this home insurance claim:

• Conduct repairs promptly. Make minor repairs frequently than waiting to file for costly and time-consuming claims.
• Seal rodent damages. Entry holes can be the temporary bottleneck to potentially more extensive damages and headaches.
• Clean. Furnaces, chimneys, lint traps, and other areas should be kept clean to prevent hazards.

Theft

Ave. cost of each claim: $4,391– 7th

Frequency of claim: 1 per 400 homes– 5th

Tips to prevent this home insurance claim:

• Strategize. There are ways to prevent thieves from breaking into your premises, like placing thorny bushes near windows. Another tip is to use a timer on your lights. Of course, ensuring every entry point is locked before bed is best.
• Don’t hide valuables in cliche hiding places. Closets, dressers, and cupboards are the first areas burglars check. Hide them someplace else.
• Don’t announce vacation plans. You should be the only one knowing your upcoming trips. Don’t announce them on social media, as it may alert and tempt thieves to steal while you’re away.

Prevention is always better than cure. Some big problems and stressful headaches could be avoided if we become extra vigilant with our abodes. Unfortunate events may still happen, but if we do what we can to protect ourselves, the damage will potentially be minimal at best.

So, there you have it! Those are the top 6 home insurance claims and how to avoid them. If you are interested in buying or updating your existing homeowner’s Insurance policy, reach out to Northeast– MetroWest Insurance Agency.