September 28, 2021
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.
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.
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.
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.
Real Support When You Need It!
How to make a successful water leak insurance claim Signing up for homeowners insurance is a relatively straightforward process. Paying your insurance premium is probably even made easier by your insurance company. But what about filing a homeowners insurance claim?...
If it's your first time filing a home insurance claim, you are probably wondering how long does an insurance claim take? Insurance claims can be a stressful process, and you'll want to know when the claims process will be over so you can get your life back to normal....
Whether your homeowner's insurance helps cover tornado damage depends on where you live. It also depends on the type and amount of coverage you have and what causes the damage. For instance, hail from a tornado can quickly cause devastation to your home, not just it's...
Commercial Cleaning Services Vrs. Fire Restoration Services Indeed, Americans spend most of their waking hours at work. Also, we know from studies that decision-making is more complex for people that suffer a terrible loss due to post-traumatic stress syndrome....
Watch Out For These Scary Insurance Scams Insurance scams are on the rise, and no one wants to be the victim of a scam. According to the Insurance Information Institute, insurance scams result in about $40 billion in losses every year. Losses that insurance companies,...
What is an Insurance Adjuster; Also Known as Claim Adjuster? An insurance adjuster is someone who investigates insurance claims to determine if your insurance company should pay you for your damages/losses. In addition, an insurance adjuster, also known as a claims...
Stay Up to Date With The Latest News & Updates
Don't Wait - Get More
Get a free 1 hour consultation on your next call. So call today and challenge the insurance company narrative on your policy claim. We can help you with all your public adjuster claims support. Let us help you get more.
Join Our Newsletter
Do you want to learn more about public adjusting. In this newsletter we create helpful tips and hints and you will receive notifications when we post new articles.
Follow us on the following social networks.