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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Best way to beat the insurance company is to hire AllCity Adjusting

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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How to Handle a Commercial Large Loss Restoration

If water, fire or a storm has severely damaged your business, you need help. Dealing with a large-scale catastrophe by yourself is not the way to go. Filing a commercial large loss restoration claim will take time, effort and patience.
Therefore, you should hire a public adjuster so that your insurance company pays you every dollar to which you are entitled.
You will also need a restoration company to immediately respond to your business. In fact, most good ones are available 24 hours a day, seven days a week. In addition, they will make an emergency response to begin the restoration process.
There are several procedures restoration services companies go through when responding to a commercial property damage incident.

Problems Homeowners Have After Filing an Insurance Claim

Problems Homeowners Have After Filing an Insurance Claim

Unfortunately, fires, hurricanes, or other natural disasters can do serious damage to a home. Certainly, most people have homeowners’ insurance in case of property damage. Of course, they will file an insurance claim under their home insurance policy. However, often there are problems homeowners have after filing an insurance claim.

Fire Damage Insurance Claim Is Denied

Fire Damage Insurance Claim Is Denied

Of course, having a fire in your home can be terrifying for the homeowners and their families. The amount of damage to the property insured, personal property lost and the seeing soot, smoke, and burned walls will traumatize the entire family. Certainly, as the property owner, you will file a fire insurance claim with your homeowners’ insurance company. However, what do you do if all or part of your fire damage insurance claim is denied?

Deal with Home Insurance Claim Adjusters

If a storm, fire or other natural disaster damages your home, you first want to make sure everyone in your family is safe. After that, you will survey the damage. If it is more than very minor, you will probably file a homeowners’ insurance claim. Therefore, it will be helpful to know how to deal with a home insurance claims adjuster.You should file an insurance claim as soon as possible to start the claims process. Certainly, the sooner you file a claim, the sooner you can get your insurance settlement.After you file a claim, an adjuster working for the insurance company will come to inspect the damage to your home. Insurance claim adjusters may work directly for the insurance company. Or they may be independent adjusters.However, don’t be fooled. Independent adjusters only work for insurance companies as independent contractors.As such, they are looking to settle your claim quickly and cheaply. Insurance companies are not in the business of simply paying money to insureds. Consequently, company and independent adjusters know that and act accordingly. The insurance adjuster evaluates your property, collects evidence on the extent of the damage and rules on your claim.

Understanding the Insurance Claims Process

Understanding the Insurance Claims Process

There are few events more traumatic to homeowners than having a fire in their homes. Fire damaged homes can mean flame and heat damage and smoke and soot throughout the house. Additionally, water damage from the efforts to put out the fire appears on the walls, soaked furniture, and water-logged carpeting. Unfortunately, if the damage is extensive, you will have to decide whether to rebuild or replace your home after the fire.

Estimating Fire Damage and Restoration Costs

Estimating Fire Damage and Restoration Costs

There are few events more traumatic to homeowners than having a fire in their homes. Fire damaged homes can mean flame and heat damage and smoke and soot throughout the house. Additionally, water damage from the efforts to put out the fire appears on the walls, soaked furniture, and water-logged carpeting. Unfortunately, if the damage is extensive, you will have to decide whether to rebuild or replace your home after the fire.

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