In Florida, mortgage lenders require home insurance coverage for their own financial protection. Although there is no other legal requirement to obtain home insurance, it is strongly recommended. Home insurance allows homeowners to protect their property investment, personal belongings, and additional expenses incurred as a result of a covered loss. Despite taking precautions to avoid loss, homeowners may still experience damage from natural disasters or sudden and accidental events. It is not worth the risk of having your home unprotected.
According to the Insurance Information Institute, the three most common types of home insurance claims between 2016 and 2020 were:
- Wind and hail
- Water damage
- Fire and lightning
WIND & HAIL
The most common home insurance claims are caused by wind. Natural disasters can cause wind damage, such as hurricanes, tornados, windstorms, and hail. Wind can cause roof damage, broken windows, damage from fallen trees, and other losses. Natural disasters are unpredictable. Although homeowners can attempt to mitigate by installing storm shutters or nailing plywood panels, it may not be enough to fully protect their property.
WATER DAMAGE
The second most common home insurance claims are caused by water damage. Water damage can be caused by storm-related floods, bursting pipes, sewer backups, broken appliances, and other losses. Most homeowner insurance policies cover accidental water damage but not floods. However, homeowners can purchase flood insurance for additional coverage. Besides electricity, water is the second most used commodity inside homes. For that reason, accidental water damage can occur when least expected. Homeowners should also be aware of any subsequent mold growth.
FIRE & LIGHTNING
Lastly, the third most common home insurance claims are caused by fire and lightning. This loss tends to be the most costly insurance claim. Lightning damage to homes may lead to fires. Wildfires can place your home at risk, as well as accidental kitchen fires. Regardless of the cause, fires will destroy anything they touch, resulting in extensive damage.
Living with property damage can be stressful, and the insurance claim process can be lengthy. Despite taking precautions, property losses can be caused by accidents or unpreventable natural disasters. Therefore, it is highly encouraged to have home insurance. If you encounter property damage due to wind, water damage, or fire, and your insurance claim has been denied or underpaid, contact Gelber Law Group, P.A. to assist you.