According to Insurance Information Institute statistics from 2016 to 2020, about 1-in-20 insured homes has a claim each year. The six most common types of home claims also are, on average, among the costliest.
Fortunately, there are steps you can take to help protect your home from damage, and insurance options that will help cover you. See how costly some of the most common claims can be, what you can do to prevent them and coverage options The Hanover offers, in the event something happens.
Fire and Lightning
The average cost for a fire and lightning claim was $77,340 and ranked in first place as the most expensive claim, and fifth as the most frequent claim.
Tips to Mitigate Damage
Have a fire extinguisher on hand, especially in the kitchen, where almost half of home fires begin.
Check smoke alarms monthly. Set a recurring date or day, such as the first Sunday of each month.
In the event of lightning, unplug appliances, starting with computers and phones.
Insurance Protection to Consider
Guaranteed replacement cost coverage insures the full replacement cost to rebuild your home after a total loss, with materials and craftsmanship of like kind and quality, regardless of rising material and labor costs.
Bodily Injury and Property Damage
The average cost per claim for bodily injury and property damage was $30,324, making it the second most expensive claim type. It ranks sixth as the most frequent claim.
Tips to Mitigate Damage
Keep walkways clear, whether it’s snow on your sidewalk or toys in the hallway.
Beware of (your) dog. Nearly one-third of homeowners’ liability claims stem from dog bites.
Get rid of the trampoline. Few household items drive more home premium increases — or cause more injuries.
Insurance Protection to Consider
Umbrella coverage is insurance against defense costs, judgments and court costs relating to liability claims that take place on your property. This protection can be both important and affordable.
Water Damage and Freezing
At an average cost per claim of $10,849, water damage and freezing were the fourth most expensive claim type, and second most frequent.
Tips to Mitigate Damage
Keep gutters clean and use downspout extenders. Make sure gutters drain away from your home.
Raise appliances off the floor, including washers, dryers and other heavy electrical equipment.
Periodically run your sump pump and clean it each year before spring.
Insurance Protection to Consider
Water backup and sump pump overflow covers property losses and clean-up costs that result from water backing up through sewers, drains or sump overflows.
Wind and Hail Damage
Wind and hail damage had an average claim cost of $11,695, ranking third most costly, but first most frequent claim.
Tips to Mitigate Damage
Anchor larger outdoor items, such as grills or patio furniture, to prevent them from becoming potentially damaging projectiles in a windstorm.
Check your roof for loose shingles frequently and repair promptly.
Trim tree limbs to prevent them from overhanging structures.
Insurance Protection to Consider
Waiver of deductible coverage applies only to the highest deductible when a claim affects multiple properties, such as a home and a car, or two cars.
There’s a lot to consider when insuring your home. That’s why the best bet is to rely on the expertise of your local independent insurance agent. Educators Insurance Agency can help MTA members create the ideal combination of coverage, value and price. T
For questions contact them at
888-908-6822 or visit
www.educatorsinsuranceagency.com.
