Written by Andy Gurczak

September 28, 2021

Types of Home Insurance Claims

Homeowners insurance is a necessity. It protects your home and possessions against damage or theft. And generally, mortgage companies require borrowers to have their property protected and insured to full or fair value. In fact, they won’t make a loan or finance a real estate transaction. Whatever the case, there are more than a few risks your home faces. Therefore, you might have to file more than a few types of insurance claims when you get home insurance.

Read on below to learn more about types of home insurance claims.

Types of Home Insurance Claims Home Damage

Common Types of Home Insurance Claims

While certain country areas are more prone to specific issues, the best homeowners insurance for your needs should cover these common homeowners insurance claims.

Types of Home Insurance Claims #1: Wind and Hail Damage

Wind and hail damage is the most common type of insurance claim according to the Insurance Information Institute. Windstorms can damage roof shingles or bring trees and branches down onto your property. Meanwhile, hail can damage windows, roofs, and personal property. Regardless, your home insurance policy can help cover the cost of damage.

Types of Home Insurance Claims #2: Fire and Lightning Damage

While fire claims are less frequent, they are more costly since structure and property can suffer damage. Either because of the smoke and flames or the water firefighters must use to extinguish the blaze. For this reason, you have to make sure your coverage is adequate.

Moreover, lightning also falls into this category because of its capability to ignite your home. However, lightning can also overload your electrical system and destroy it.

Types of Home Insurance Claims #3: Water Damage

Water damage can result from rain or snowmelt, along with interior issues such as a burst pipe or leaking plumbing. However, standard home insurance doesn’t cover flood damage. For flood coverage, you’ll need to ask your insurance company for a specific policy.

Types of Home Insurance Claims #4: Non-Theft Property Damage

This includes incidents such as a tree falling on the roof or a utility truck backing into your garage. While this type of claim can take a number of forms, the average claim costs $6,598. Luckily, homeowners insurance policies cover this type of damage, so long as it’s not because of negligence.

Types of Home Insurance Claims #5: Human Incited Property Damage

Vandalism and malicious mischief are among the top reasons for homeowners insurance claims. For example, instances such as broken windows and other damaged outdoor accessories, along with graffiti and sabotaged locks, garner a number of claims. Furthermore, destruction of gardens and landscaping is also frequent.

Types of Home Insurance Claims #6: Break-ins and Theft

Meanwhile, the two terms are often used interchangeably; they are different in the eyes of the law. Burglary can be a precursor to theft, but theft does not have to include burglary. To illustrate, theft is defined as the act of permanently taking another person’s money or personal property without their consent.

On the other hand, burglary is simply entering a structure such as a home, office, or any other private structure to commit a crime. In short, theft is but one of the categories of qualifying offenses for burglary. The best way to avoid filing this type of claim is by installing a home security system.

Types of Home Insurance Claims #7: Liability

A liability claim protects you from lawsuits filed by others. Liability refers to your duty toward other people, such as when a guest suffers injury or property damage while visiting your home.

Therefore, this clause even includes your pets. So, if your dog bites your neighbor, your insurer will pay her medical expenses. However, Off-premises liability coverage often doesn’t apply for those with renter’s insurance.

Different Types of Home Insurance Claim Coverage

All insurance is certainly not created equal. For instance, the least costly homeowners insurance will likely give you the least amount of coverage, and vice versa.

In the U.S., there are several forms of homeowners insurance. They are designated HO-1 through HO-8 and offer various levels of protection depending on the needs of the homeowner and the type of residence. In short, there are essentially three levels of coverage.

First, Actual cash value

Actual cash value covers the cost of the house plus the depreciated value of your belongings.

Second, Replacement cost.

Replacement value policies cover the actual cash value of your home and possessions without deducting the depreciation. Therefore, you would be able to repair or rebuild your home up to the original value.

Finally, Guaranteed replacement cost/value.

Last but certainly not least, guaranteed replacement cost. This one might be the most comprehensive since it pays for whatever it costs to repair or rebuild your home. In fact, it even covers you if it’s more than your policy limit.

Certain insurers offer an extended replacement, meaning it offers more coverage than you purchased. For this reason, some advisors feel all homeowners should buy guaranteed replacement value policies.

Types of Home Insurance Claims Money Compesation

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Homeowners Insurance doesn’t cover what Types of Home Insurance Claims?

While homeowner’s insurance covers most scenarios, some events are generally excluded from policies—for example, natural disasters and acts of war.

If you live in a flood or hurricane area or an area prone to earthquakes, you’ll want riders for these. Or maybe an extra policy for earthquake insurance or flood insurance. There’s also sewer and drain backup coverage you can add on, and even identity recovery coverage that reimburses you for expenses related to being a victim of identity theft.

Types of Home Insurance Claims Claims

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At AllCity Adjusting we help residential and commercial clients alike get the claims support they need. Moreover, we have over 50 years of combined experience helping get our clients the max settlement time and time again. If your claim has been low balled or denied entirely we can help increase your maximum settlement. Call us today for a FREE consultation. Experience the AllCity difference.

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Should You Make Your Own Insurance Claim Repairs?

Let’s say you had a small fire in your home. Faulty electrical wiring caused the fire. Of course, someone will have to tear down parts of the wall where the fire started. Then someone will have to hang new sheetrock and paint it. You’re pretty handy around the house. You’re thinking, should you make your own insurance claim repairs? Is there any way to get your insurance claim check faster?

What Are Some Common Business Insurance Claims?

Certainly, almost all businesses, from large corporations to mom-and-pop stores, will probably face some type of accident or incident that will become an insurance claim. Below we will discuss some common business insurance claims that businesses across the country must confront.Is there any way to get your insurance claim check faster?

How Does Home Repair Insurance Work?

How Does Home Repair Insurance Work?

Homeowners’ insurance will cover damage from unexpected and sudden perils, like hurricanes, fires, and hail. However, it excludes insurance coverages if the damage stems from everyday use and wear and tear to appliances, HVAC systems, etc. Therefore, if you feel you need insurance coverage for those items, you need to know the answer to the question: how does home repair insurance work?

How to File a Roofing Insurance Claim

How to File a Roofing Insurance Claim

Your roof is the primary protection for your home from the elements. Of course, the wind is probably the most dangerous element to your roof. However, roofs also get damaged by falling trees, electrical poles and wires, hail, and heavy snow. If a storm or some other unexpected event damages your roof, you will have to know how to file a roofing insurance claim.

How to Get Flood Insurance

How to Get Flood Insurance

Homeowners’ insurance protects homes from damages caused by fire, hurricanes, windstorms, and other natural disasters. However, standard homeowners’ insurance does not cover damages caused by floods. Consequently, homeowners and renters who live in a high-risk zone for flooding need to know how to get flood insurance.

commercial mold cleanup and restoration

commercial mold cleanup and restoration

If you have found mold in your business, you should be concerned. For instance, properly removing mold can be expensive and difficult to do correctly. Mold in your business can be dangerous for your health, and that of your employees, customers and visitors. However, commercial mold cleanup and restoration is necessary if you want to keep operating your business.

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