In 2018, 6.7 million or 1 in 19 homes in the United States had to make a claim on their homeowner’s insurance policy. What were the most common causes for claims? According to The Travelers Companies Inc., from a review of homeowners claims from 2009-2015, the five most common causes of home insurance claims are as follows:
Exterior wind damage – 25%
Water damage from plumbing or appliance issues – 19%
Hail – 15%
Weather-related water damage (e.g., rain, melting ice, snow) – 11%
Burglary/theft – 6%
Surprised not to see fire on the list? Wind and weather damage tend to be the most common reason for claims and while, by comparison, fire has a small number of claims, it is far and away the most expensive, averaging around $50,000 per claim. US fire Administration reported 1,319,500 fires in the US resulting in $23.0 billion damage in 2017. While only 1 in 323 homes has fire damage, it takes the bulk of the expenses for most insurance companies.
Theft, while only 6% of the claims, still equates to approximately 4,800 per day, according to Safewise.com, a home security research firm. The average property loss per burglary is around $2,251.
How can you protect yourself from the unexpected? It’s impossible to predict all the things that could go wrong with your home. Listed below are a few preventive steps and ideas for routine maintenance, which will hopefully help lessen the likelihood major damage.
Is your home fire ready?
Smoke alarms: make sure they are properly maintained, inspect them regularly and test the batteries once a month (keep extra batteries at home so changing them is easy)
Inspect heating sources: change filters, check the heating system and inspect space heaters for damage
Stove and Cooktop: keep the stove and over clear of anything flammable while cooking
Cords: regularly look for frayed wires and check the condition of the cords
Inspect the dryer: keep the lint trap clear
Make a plan: prepare with your family for a safe exit and meeting point in case of a faire
Have fire extinguishers readily available: both in the kitchen and nearby during any possible fire inducing activity (ie. outdoor grilling, cooking, any open flame activity)
Preventing Water Damage
Maintain and understand your indoor plumbing systems: inspect showers, tubs, faucets and appliance hoses
Plumbing and heating pipes: check for cracks and leaks
Main water shut-off valve: know the main water shut-off valve location in your home
Repair and protect your home’s exterior: inspect the roof, downspouts, sprinklers and irrigation systems; install gutter guards and properly caulk your windows where necessary; make sure water drains away from the building
Store valuables and keepsakes safely: keep storage of important items where there is less risk of water damage
How strong is your home’s defense?
Inspect and replace old locks: new locking systems are a major deterrent to would-be criminals
Doors: ensure your main entrances have sturdy doors - protects from a kick-in
Lock all doors and windows: believe it or not, more theft is the result of an unlocked door or window
Lock up your valuables: invest in a strong safe that cannot be easily moved or consider a lockbox at your bank or credit union
Consider a security system: there are a multitude of options available these days to fortify your home
Weather prevention: you can’t stop the weather, but you can lessen the impact
Install storm doors and windows: better protection from wind and storm damage
Prevent projectiles: When a storm is forecast, stow away outdoor furniture and other possible items that could get whipped up by the wind and turn into projectiles
Inspect trees: look for weak limbs and trim down any issues
Prepare for lightening: Insure you have a properly installed lightening rod and use surge protectors
Accidents in life happen, generally when we are busy making other plans! When the unexpected happens and you find yourself having to make a claim, the stress of the event can be worrying enough, let alone dealing with the deductible and emergency expenses while the home is being assessed. Most home insurance policies carry a deductible of $500-$1000. With your membership in the Home+Plus program from Lifestyle Benefits Club, you are guaranteed up to $1000 home deductible reimbursement and up to $1000 for emergency expenses once a year. Click here to learn more and know your deductible is covered in the case of a home emergency.
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