3 common home insurance claims (2024)

FAQs

3 common home insurance claims? ›

According to the Insurance Information Institute (III), wind, hail, fire, lightning and water damage are common reasons for filing property insurance claims.

There is no set number of claims that will result in an insurance company dropping you from a home insurance policy. The decision to drop a policyholder is typically based on the frequency and severity of claims, the type of claims filed and the overall risk profile of the policyholder.

Wind and Hail

As the most frequent causes of filed homeowners insurance claims, wind and hail account for 45.5% of claims.

Generally, a homeowners insurance policy includes at least six different coverage parts. The names of the parts may vary by insurance company, but they typically are referred to as Dwelling, Other Structures, Personal Property, Loss of Use, Personal Liability and Medical Payments coverages.

Admitting Fault, Even Partial Fault.

Avoid any language that could be construed as apologetic or blameful.

If your insurer nonrenewed or cancelled your policy because your house needs repairs or you filed too many claims, you may have difficulty finding an insurance company willing to insure your home.

There are many perils that can result in property damage. Oftentimes, these types of claims are very expensive. For instance, fire damage claims are the most expensive, resulting in an average premium increase of $273. Water damage claims are also very costly, increasing premiums by an average of $228.

Damage from fire and lightning is widespread across the U.S. and accounts for the costliest homeowner loss claims by a long shot: From 2014–2018, the average claim for damage done by fire and lightning was $79,785.

What is the most common damage to your home that insurance does not cover? ›

Poor maintenance or neglect

In other words, basic maintenance and wear and tear are typically not covered by homeowners insurance. So, for example, if your AC goes out in the middle of the summer, you'll have to pay to fix it.

When negotiating with the adjuster, be prepared to advocate for yourself. Be polite and professional, but don't be afraid to push back if you think the settlement offer is too low. Provide evidence to support your position, and be willing to compromise to reach a mutually acceptable agreement.

HO-3 insurance policies cover your dwelling, belongings and personal liability. You need HO-3 insurance because it provides financial coverage should your home's structure get damaged from natural disasters or other perils such as theft or fire.

Make sure you're covered for the right amount – your home insurance policy should cover the full value of your home in case of damage or destruction. When it comes to home insurance, you want to make sure you're getting the right amount of coverage.

Standard homeowners insurance does NOT cover damage caused by flooding, earthquakes, termites, mold, or normal wear and tear.

Cancellation. Every insurance company sets its own benchmark for triggering a cancellation, but it is more likely that you'll face cancellation or non-renewal if you've made three or more claims within a three-year period. Most cancellations occur within the first 60 days of a policy, usually due to non-compliance.

Frequent claims: Can an insurance company drop you after a claim? In some cases, yes. Filing home insurance claims often could cause your home insurance premium to increase and if you've filed multiple claims within the past few years, it's possible that your home insurance company might cancel your policy altogether.

The most common reason for homeowners insurance to be canceled is that something about your property has become too risky, or the company has discovered a risk it wasn't aware of when the policy was issued. They include: A problem was found during an inspection.

A lapse in your coverage means that you are uninsured. It could be days or weeks, but the risk is the same; if something happens during the lapse period, you will not have any financial protection from homeowners insurance and will have to pay the expenses and losses out of pocket.