Home Deductibles & Statistics
Homeowner’s insurance is not required by law in the United States. Although it is not a law, many times mortgage lenders are allowed to require homeowner’s insurance from borrowers before closing on a mortgage. Regardless of the legalities, it is always a good idea to insure your home in case of a catastrophic situation arising. According to the Insurance Information Institute, approximately 93% of homeowner’s have homeowner’s insurance.
Reportedly about 1 in 20 homes file claims each year. On average homeowner’s pay approximately $1,600 for homeowner’s insurance annually. In 2022 The rates have increased in insurance premiums, causing the average American to pay an annual amount of approximately $1,900 for the year.
The unfortunate stats point out that the average American homeowner does not have the adequate coverage available to replace their home and contents in case of a complete catastrophe, according to the Federal Emergency Management agency. The most expensive home claims usually result from fires and lightning damages.
The average settlement payouts for these types of claims are approximately $80,000. Property damage claims statistically are the highest at 97% according to policygenius. Wind and hail damage is the most common claim coming in at 34% of property damage claims made. Water damage and freezing usually comes in next in line at approximately 29% of property damage claims made. Fire and lightning usually come in third on the scale for property damage claims made, and usually takes up 27%. All other property damage claims usually come in at approximately 6%. Home theft claims are only approximately 1%. Liability claims usually come in at 3% and other property damage and bodily injury claims also come in at approximately 3%.
More than half of the home policy holders are unaware that flood coverage isn’t always included in home insurance policies. Over 80% of homeowners also do not realize that earthquakes are also not covered by standard insurance policies. It is always a must to research the area and the possibilities thereof the region in which you have purchased a home.
Costs vary by state
Homeowners insurance costs do vary by state. Tornado regions and Atlantic coast states usually have the higher premiums according to analysis of rate data. Homeowner’s insurance also varies by company as well. According to the National Association of Insurance Commissioners (NAIC ) The two largest providers of homeowners insurance by market share are State Farm and Allstate.
Homeowner’s insurance with no claim history usually requires approximately $1000 deductible, and coverage usually varies based on many factors including the policy you have acquired. These are generally the areas that insurance companies provide:
- Dwelling (Your home including roof damage)
- Personal Property (Furniture, appliances, clothing, etc.)
- Other structures (garages, decks, and fences)
- Loss of use (In case you need to completely relocate due to damages)
- Personal liability (Coverage for accidents occurring in the home)
- Medical protection (Payments when a person is injured on your property)
According to the Insurance Information Institute Earthquake insurance usually comes with higher deductibles policy plans. For earthquake home insurance policies, deductibles can range from 2%- 20%. If you must file a claim with $100,000 in repairs and your plan covers a 2% deductible, you would be responsible for paying a $2000 deductible in this event before your insurance policy covers the rest.
No Duk has you covered
Here at No DUK we value the importance of insurance policy coverages across the board. We encourage that everyone takes the precautions to protect their homes and their families. Here at NO DUK we want to help people by putting money directly in your pockets in the events of claims and damages. There are no gimmicks and absolutely no catch. No DUK guarantees utmost savings. This is a win win!!
Say no to deductibles! Say No DUK!!