5 Most Common Types of Property Insurance Claims

Homeowners and business owners are all wise to have comprehensive property insurance coverage. There is always the potential for property damage or theft. With proper coverage, insurance claims should be a simple matter to handle. However, without adequate coverage, it could mean a major out-of-pocket expense. People would be surprised at the five most common property insurance claims that take place. It’s best to be prepared.

  1. Natural Disaster: Damage from the elements is one of the leading property insurance claims. When there has been a severe windstorm or hail storm, extensive damage to the home, outbuildings, vehicles, campers, and anything else on the property could occur. If a property owner has insurance to cover the buildings, they will find their premium payments well-worth it compared to the expense involved in replacing a roof, windows, or other potential repairs. Something more that should be considered is anything such as recreational vehicles, like campers, on the property. They can be covered under the insurance policy, but must be specifically added. If not, the property owner will be out of luck. For example, if there is an older RV on the property that is in good condition and worth approximately $5,000, and it is not added to the homeowner’s policy, it won’t be covered in the event of natural disaster. Should a tree fall on it during a storm, the owner will be out of luck. However, if the RV has been added to the policy, the owner will receive reimbursement from the company to do repairs or purchase a comparable RV.
  2. Water Damage: Water can cause big problems. Flooding can occur at any property, even if it is not a place that commonly experiences such damage. An excellent example is the recent flooding of upstate New York. In a region where people hardly ever had to deal with flooding, and if so it was only on a minor scale, they endured flooding at record levels. The water level rose to 10 feet and above within the space of a half hour, giving people little warning. The complete loss of homes, including entire neighborhoods, was devastating. Most of those families did not have insurance for flooding. That type of insurance has to be requested to be added to a policy. In addition, it is important to indicate that the flood insurance is for the property, building, and its contents or claims will be denied. Even though flood insurance means an additional cost to a property owner, imagine what it would be like to lose everything and have no coverage to rebuild. Burst or leaking pipes are another issue. Property owners should always ask their insurance providers if they are covered for potential water damage.
  3. Fire: Fire is a major concern for property owners. The thought of fire strikes fear into the hearts of people everywhere. Both terrifying and heartbreaking, it can mean a loss of heirlooms and sentimental belongings that can never be replaced, while threatening the lives of loved ones. It is essential that property owners make sure they have a good insurance policy that will cover any losses that could occur in the event of a fire. That means not only the building, but the contents. There is the possibility, as terrible as it may be, of losing everything in a fire. When an insurance claim is filed, people will want to be assured that they will have coverage for new clothing, appliances, furniture, and other belongings for a fresh start. While the special treasures may be lost forever, it certainly helps people move forward for a new beginning if they are covered under a good insurance policy.
  4. Pets: Pet incidents are also common reasons to file claims. Whether a pet intentionally bites someone or causes a fall, homeowners need coverage. There are many reasons a pet may attack. It could be a case of mistaking a visitor for an intruder when the pet is taken by surprise or when a utility worker arrives. There may be an incident of children playing with pets and unexpected reactions occur. Whatever the reason, the medical bills can be costly, as the victim of the attack may want reimbursement. To avoid the possibility of a nasty lawsuit, having adequate insurance coverage is a major advantage. A claim can be filed and restitution can be made possible.
  5. Accidents: When accidents happen to neighbors, friends, or others on the property, they lead to insurance claims. There could be a fall, a broken step, or ice falling from a roof that causes an injury. Children playing in the yard may have an accident with the neighbor’s child. Should any injuries take place that require medical treatment, property insurance claims can be filed to reimburse any expenses. It is very important for property owners to be informed and know exactly what coverage they have as well as what they should add to their policies. It may be a hard pill to swallow each time that insurance bill arrives but the benefits of a solid insurance plan far outweigh the price of premiums. In addition, the insurance industry is a competitive business. Consumers can shop around and find more bang for their buck. With reliable and efficient service and an excellent policy, property owners can rest assure that their property insurance claims will be handled without a problem. It is music to the ears to hear that the check is in the mail when there has been extensive property damage. It is much easier to roll up one’s sleeves and begin anew when an insurance claim has been successfully resolved without hassle.

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