Top 5 Reasons for Home Claims

For most Americans, their home is their most precious asset. They insure it against catastrophic damage due to fire, storms, and theft. Fortunately, house-destroying cataclysms are rare, but plenty of problems can cost tens or hundreds of thousands of dollars if you’re uninsured or underinsured. Let’s take a look at the most common home insurance claims so you can work to prevent them and ensure you’re fully covered.

As we review these homeowners insurance claims statistics, rest assured that Wawanesa will guide you through any homeowners claim every step of the way. We’ll show you why our customers consistently express high satisfaction with our claims process. We’re happy to answer all your questions about filing a claim, but we’d rather help you prevent the stress and destruction in the first place.

Most Common Home Insurance Claims

Industry-wide analysis, as well as our own records, clearly identifies the top five home insurance claims. While the statistics change slightly from year to year, the top claims remain quite consistent. Based on a five-year Insurance Information Institute (III) study spanning 2017-2021, on average, six percent of insured homes experience a claim event. Of all homeowners insurance claims in a year, the top five account for over 69 percent of all claims. The most common home insurance claims are due to:

• Weather-related damage
• Water damage
• Fire and smoke damage
• Theft and burglary
• Liability claims

Let’s explore the top homeowners’ claims and how they can be prevented.

1. Weather-Related Damage

Making up over 40 percent of all homeowners claims in the U.S., the top reason to file a home insurance claim is due to wind, hail, and other weather-related damage. If your home is in the path of a hurricane or tornado, there’s not much you can do about that other than “batten down the hatches.” But it’s still a good idea to try to mitigate the damage as much as you can. For less severe storms, if you’ve done prep work on your house and property, you’ll be in much better shape when things start to shake and rattle.

It's important to note that flooding from weather events and earthquake damage is not covered by a standard homeowners policy. To be fully protected, you'll need to purchase separate policies for these risks.

Preventive measures:

• Inspect any trees on or near your property for weak limbs or trunks and have them trimmed.
• Repair and replace shingles and tiles on your roof to prevent water and moisture from breaching your home during a storm.
• Inspect your roof’s vent pipe gaskets annually and replace them if worn, dried out, or cracked.
• Clear your gutters of leaves, pine needles, and other debris that can clog your gutters during a rainstorm.
• Check that all doors and windows are securely fitted and can lock properly.
• Make sure your chimney cap is securely attached and in good condition.
• Ensure that water drains away from your home’s foundation. Consider installing extension pipes to control the flow of water.
• Put outdoor objects, such as patio furniture, inside during windstorms to prevent it from being blown around, as it could break a window or injure someone.

2. Water Damage

The second most common homeowners’ claim is water damage, which includes weather-related damage and plumbing mishaps. We use water in so many ways at home – in the kitchen, bathroom, and laundry room – which means there are so many avenues for leaks and spills. The good news is that there are just as many ways to avoid water damage.

Preventive measures:

• Repair any dripping or cracked pipes.
• Maintain your big appliances, such as the fridge and washing machine. Pay close attention to the hoses, which can get dry and brittle as they age.
• Check seals and caulking around showers and tubs and reseal when necessary.
• Avoid pouring sticky, greasy, or thick substances down sink drains, which could block the pipes.
• Replace angle-stop valves and toilet or faucet braided supply lines every 5-10 years.
• Check the water pressure to ensure it’s within a suitable range (45-65psi). Pressure above this range could stress your pipes and fixtures, damaging their integrity.
• Invest in automatic water sensors. These smart devices will alert you when moisture is present from a slow leak long before you would detect it yourself.
• Add an automatic water shut-off valve in case you’re not home when trouble begins.

3. Fire and Smoke Damage

Fire is undoubtedly the scariest cause of home insurance claims. The speed, danger, and totality of the destruction are breathtaking. It is also the most expensive by far. In the five-year study noted above, the average property damage claim was $15,091. However, the average claim for fire damage was $83,519.

Fortunately, many house fires are preventable. Preventive measures include:

• Have a professional electrician review your home’s electrical wiring and outlets to ensure they’re up to code.
• Install smoke detectors and a sprinkler system throughout the home, connected so that when one detects smoke, the alarms sound on each unit. This investment may earn you a nice discount on your insurance premiums.
• Test the smoke alarms regularly to ensure they’re in working order.
• Place a fire extinguisher in the kitchen and garage.
• Make a fire escape plan and review it with the entire household. Practice the plan so that everyone remembers what to do if it’s ever needed.
• Have the fireplace and chimney inspected and cleaned by a professional. Sweep the chimney once a year.
• Examine the cords and plugs of every appliance, such as the electric skillet, coffee pot, blender, etc.
• Unplug any electrical devices, such as chargers, kitchen appliances, and tools in the garage, when not in use. This simple habit not only helps lower your electricity bill but also reduces the risk of a fire.
• Keep all paper towels, dish towels, and other flammables away from the stove or any heat source when cooking.
• Practice proper fire safety when burning candles, smoking, using Christmas lights, and space heaters.

4. Theft and Burglary

The Federal Bureau of Investigation reports that a burglary occurs every 22.6 seconds in the U.S. The first step is ensuring your home insurance policy provides adequate protection against break-ins and theft. If you have fine jewelry or expensive artwork, for example, you will want to increase the limits on your policy. Then, learn how burglars break into homes and how to foil them by securing your home using the pointers below.

Preventive measures:

• Regularly check that the knobs and locks on doors and windows work.
• Add deadbolts to all outside doors.
• Lock your doors and windows at night and when you’re away from home.
• Install motion-sensing lights outside and turn them on at night.
• While you're away, make it look like someone is home by asking a trusted neighbor or friend to pick up mail and put out trash.
• Install a light timer so lights go on and off in the evenings.
• Don’t hide a spare key outside. The convenience isn’t worth the risk that a burglar will find it.
• Install a security system with an alarm to scare burglars away and notify you and the police if someone enters your property.
• Keep an inventory of all your belongings and their value in case the worst happens, and you are burglarized.

5. Liability Claims

Your home insurance includes liability coverage that protects you if a visitor or worker is injured on your property. Common liability home insurance claims include when someone slips and falls in your home, your pet bites someone, or there is a mishap around the pool. Liability claims can be costly, so prevention is critical.

Preventive measures:

• Pay attention to your pet and train them well. Nearly one-third of all home liability claims are for dog bites. Give dogs plenty of exercise, and post warnings if they are aggressive.
• Regularly inspect and maintain your property. Ensure all walkways, stairs, and entry areas are clear and well-lit indoors and out.
• Secure the swimming pool with fencing and a self-closing and self-latching gate to prevent unsupervised access by children and pets.
• Secure the trampoline with safety netting. It’s better to eliminate it if it is not used, as it is a disproportionately common cause of homeowners' claims.
• Keep all children’s play equipment in good working order.
Make sure all swings, slides, and other structures are sturdy.
• Maintain good relationships with your neighbors to help keep minor disputes from escalating into legal claims.
• Host responsibly, especially when it comes to alcohol consumption.

Preventive Measures and Insurance Coverage

Once you’ve taken all the precautions possible to shore up your home’s defenses, you should be in good shape and hopefully won’t ever need to file an insurance claim. After all, the very best way to handle a homeowners insurance claim is to prevent it in the first place. But if damage does occur, the right insurance policy minimizes stress and makes you financially whole.

Another preventative measure is evaluating your home insurance with an expert to ensure you are fully protected. Your home insurance policy includes basic coverage and optional coverages. Do you need earthquake coverage? Or do you need to increase the coverage limits for your baseball card collection or musical instruments? Everyone’s situation is different. Talk to an expert who can guide you through determining the coverage you need.

If you’re insured elsewhere, you owe it to yourself and your home to ensure you have the best coverage at the lowest price. Give Wawanesa a call and ask one of our helpful agents for a home insurance quote that includes any discounts you may qualify for.