What is the most common claim made under homeowners insurance?

The most common homeowners insurance claims are for wind and hail damage, followed by water damage/freezing and fire/lightning, with wind/hail often accounting for around 40% or more of filed claims annually, damaging roofs and siding from thunderstorms, tornadoes, and hurricanes. Water damage (leaks, frozen pipes) and fire/lightning are also very frequent claims, while theft is relatively rare, according to the Insurance Information Institute (III).

What is the most common homeowners insurance claim?

7 most common homeowners insurance claims

1. Wind & hail (40.7%) ...
2. Fire and lightning damage (21.9%) ...
3. Water damage & freezing (27.6%) ...
4. All other property damage (6.9%) ...
5. Bodily injury or property damage to others (1.6%) ...
6. Theft (0.7%) ...
7. Medical payments and other causes (0.5%)

What is the most common insurance claim for?

​5 Most Common Insurance Claims and How to Avoid Them

1. Water Damage. Water damage is a leading cause of homeowners' insurance claims. ...
2. Wind and Hail Damage. Wind and hail are responsible for a significant portion of claims. ...
3. Fire and Lightning Damage. ...
4. Bodily Injury and Property Damage. ...
5. Theft and Burglary.

What is the 80% rule in homeowners insurance?

The 80% rule in homeowners insurance requires you to insure your home for at least 80% of its current replacement cost value (RCV) to receive full coverage for partial losses; if underinsured (below 80%), the insurer applies a penalty, paying only a proportionate amount of the claim, leaving you with more out-of-pocket costs. This rule ensures you can fully rebuild after disasters like fires, not just receive the depreciated market value, and it necessitates regularly updating coverage for renovations or inflation.
 

What is the most common home insurance coverage?

HO-3 insurance. The most common type of homeowners insurance is the HO-3 policy — accounting for more than 90 percent of all home policies written in the U.S. — which covers your home, your personal property, liability, additional living expenses and medical payments.

Most Common & Expensive Homeowners Insurance Claims

What four things are usually covered by homeowners insurance?

There are four standard areas covered by your regular homeowner's policy.

• Your home's physical structure.
• Your personal belongings inside the home.
• Liability protection.
• Coverage for additional living expenses.

What is the 80/20 rule of insurance?

The 80/20 rule in health insurance, part of the Affordable Care Act (ACA), requires insurers to spend at least 80% (or 85% for large groups) of premium dollars on actual medical care and quality improvements, returning the rest as rebates if they fail, while in home insurance, it's a clause requiring coverage for 80% of your home's replacement cost to avoid penalties, meaning you're responsible for the rest of the loss if underinsured.
 

How much should homeowners insurance be on a $400,000 house?

A $400,000 home costs about $3,216 per year to insure, but your cost will vary. With a budget of around $400,000, you're square in the middle of the market across the U.S. — the median home sale price in 2025 is just over $410,000 according to data from the Federal Reserve Bank of St. Louis.

What not to say to a home insurance adjuster?

Topics to Avoid When Speaking to a Home Insurance Adjuster

• Speculation about the Cause of Damage. Avoid making guesses or unsupported statements about what caused the damage to your property. ...
• Admitting Fault or Liability. ...
• Discussing Other Insurance Claims. ...
• Incomplete Information. ...
• Legal Threats or Litigation.

What is not covered by house insurance?

Homeowners insurance typically doesn't cover damage from floods, earthquakes, landslides, mold, sewer backups, pests (like termites), wear and tear, neglect, or home-based business losses; these often require separate policies or endorsements for coverage, as standard policies focus on sudden, accidental perils like fire, theft, or wind damage. 

What homeowners insurance denies the most claims?

Which insurance company denies the most claims? According to the Weiss Study, around 30% of claims from top insurers were denied in 2023. However, USAA and Farmers denied the most homeowners insurance claims. Both companies denied almost 50% of claims.

What is the most common damage to your home that insurance does not cover?

What does homeowners insurance not cover? 13 common policy exclusions

• Flooding.
• Earth movements.
• Pest infestations.
• Mold or wet rot.
• Certain dog breeds.
• Wear and tear or neglect.
• Power surges caused by your utility company.
• Home-based business liability.

What are the 4 types of claims?

There are four types of argumentative claims: claims of fact, claims of value, claims of policy, and claims of cause and effect.

What is usually not covered by homeowners insurance?

Homeowners insurance typically doesn't cover damage from floods, earthquakes, landslides, mold, sewer backups, pests (like termites), wear and tear, neglect, or home-based business losses; these often require separate policies or endorsements for coverage, as standard policies focus on sudden, accidental perils like fire, theft, or wind damage. 

How to get the most out of a homeowners insurance claim?

Notifying your insurer and taking steps to prevent additional damage. Allowing your insurance company access to investigate your damages. Removing debris, and documenting and valuing your damages for your Proof of Loss statement. Soliciting and comparing bids for the work you'll need done.

What is the most common cause of property damage?

Top 7 Most Common Causes of Home Property Damage

• Water Damage & Freezing Pipes. According to the Insurance Information Institute, water-related claims make up nearly 30% of all home insurance claims. ...
• Wind & Hail Damage. ...
• Fire & Smoke Damage. ...
• Theft & Vandalism. ...
• Mold Damage. ...
• Sewer Backups & Sump Pump Failures. ...
• Liability Claims.

What are the 3 D's of insurance claims?

The 3 D's of insurance are “delay, deny, and defend.” They represent the 3-part strategy insurance companies use to avoid paying policyholders what they may be owed. These tactics may pressure some Americans into accepting lowball settlements, and they can result in claims being held up in court for years.

What insurance adjusters won't tell you?

They Are Not Really on Your Side. Adjusters are trained to identify ways to reduce or deny claims so they do not lose much money. They may try asking leading questions to get you to unknowingly admit partial fault, which means your settlement will be a lot less, or you will not get any.

What do insurance companies fear the most?

Plus, insurance companies fear litigation; they would rather pay your claim than risk losing even more money in a lawsuit. Keep reading to learn about the top nine tricks insurance companies use to avoid paying you a fair settlement and how a legal professional can help you get the compensation you deserve.

What is the 80% rule in home insurance?

The 80% rule in home insurance means you must insure your home for at least 80% of its total replacement cost to receive full coverage for partial losses, avoiding a coinsurance penalty that reduces payouts if underinsured. If you don't meet this threshold, your insurance company will only pay a proportional amount of your claim, reflecting the percentage of coverage you actually have versus the required 80%. 

At what point is full coverage not worth it?

Full coverage isn't worth it when your car's low value (e.g., less than 10x annual premium) doesn't justify the cost, you have savings to cover repairs/replacement, the vehicle is paid off, or you can't afford a high deductible, especially if the car is older and the payout won't cover much after deductible. It becomes a bad deal when the cost of premiums outweighs the actual cash value (ACV) of your car and your financial ability to self-insure for damages. 

How much is insurance on a $800000 house?

In 2025, purchasing $200,000-$300,000 worth of dwelling coverage cost an average of $140 per month or $1,679 per year, while coverage in the $800,000-$900,000 range cost $258 per month or $3,091 per year.

How much is a $500,000 life insurance policy for a 70 year old man?

For a 70-year-old non-smoking man, a $500,000 life insurance policy costs roughly $800 to over $1,000 per month for term life (depending on term length) and significantly more for whole life, potentially over $2,000 monthly, with premiums varying based on health, smoking status, and policy type. Term life offers coverage for a set period (e.g., 10, 20 years), while whole life provides lifelong coverage but at a much higher cost, with estimates for a 70-year-old man potentially reaching $25,000+ annually for whole life, says Aflac and Guardian. 

How much should your home be insured for?

Replacement Cost means if there's a covered loss, your insurance company will pay to rebuild your home using materials purchased at current costs, up to your policy limits. It's important to insure your home for at least 80% of its replacement cost.

Is it better to have a $500 deductible or $1 000 health insurance?

Doubling your deductible to $1,000 could save you up to 40 percent. For example, on average, a $500 deductible costs $125/month, or $1,500/year, in premiums. The average for a $1,000 deductible is about $110/month, or $1,337/year.