What's the Most Common Cause of Homeowner Insurance Claims?

8/21/2018 (Permalink)

The Northeast and the Southern states are both at high risk for wind-related damage.

You may be surprised to learn that the leading cause of homeowner insurance claims is not fire damage or water damage. It’s wind and hail damage.

According to The Insurance Information Institute,  national statistics (2010 to 2014) from property & casualty insurance companies show that 3 out of 100 homeowners filed claims in the wind/hail category.  The number of claims caused by wind/hail was nearly double the second most frequent reason for homeowner claims. In that second position? Water damage and freezing. 

Fires Cause The Most Damage
Water damage and freezing claims were made by nearly 19 out of 1,000 homeowners. Though fire claims are much rarer—fewer than four claims per 1,000 homes—fires cause the most property damage. The average fire claim in the U.S. was for $39,791. By contrast, the average wind or hail claim totaled $8,041.

One Company Paid $2.4 Billion in 2014 Homeowner Claims
The losses covered by just one insurance company are large. Damage caused by wind and hail cost State Farm and its policyholders more than $2.4 billion in 2014, according to the insurer. Texas was the state with the most wind/hail losses, followed by Illinois, Colorado, Missouri, Nebraska, South Carolina, Pennsylvania, Iowa, South Dakota and Kansas. 

Read Our Other Blog Posts
If you’re concerned about making sure your house is well prepared for a wind, hail, fire, water, or other natural disaster, look through the many blog posts here on our website. We cover many specifics. We try to give you information that will protect your family, home, and business from natural disasters.
 
Visit Your Insurance Company's Website

Go to your homeowner insurance company's website. Many insurance companies publish tips on their websites on how you can avoid claims. The Travelers website talks about installing water sensors to keep small leaks from becoming big ones.  At Nationwide’s website, you can learn how to make sure your home is covered for all it’s full value. State Farm and Allstate also have numerous blog posts with tips for homeowners and renters.  

For Cleanup Or Restoration Needs Call SERVPRO of South Madison County (256) 533-5335