Travelers Reports Most Expensive Cause of Damage is Fire

Last week, we talked about the most frequent reasons for insurance claims. This week, we’re reporting on the most expensive causes of damage.

Those of us in the west, especially California, are no strangers to the destructive force of fire, and this year we are breaking records–even though we thought we’d done that last year. And we did. But weather is getting worse, not better, with drier, hotter conditions making wildfires harder to fight and stronger than ever.

So, with Travelers’ eight years of claim data, this week we’re going to report on the most expensive causes of damage to homeowners (and renters!):

  • FIRE: It’s not just wildfires that put this at the top of the list with 25% of claims; electrical and cooking fires contribute to this number. Not that we’re in the holiday season yet, but that’s a big cause of electrical and cooking fires—and just watch this terrifying video of a Christmas tree going up in flames in literally seconds.
  • HAIL: It’s starting to sound like the apocalypse, isn’t it? While hail is unusual on the West Coast, it’s big in the Midwest, where 20% of claims are due to hail. It typically damages roofs, but also harms windows, siding, and more.
  • WATER (non-weather): Your dishwasher and clothes washer are your friends, right? Yep, right up until they decide to leak and cost thousands in damage—not just water damage, but mold, which three times as costly to repair. Plumbing, sewer or appliance leaks cause 17% of devastating home losses.
  • WIND: While wind may not necessarily blow your house down (unless we’re talking a hurricane or tornado), it can uproot trees, damage roofs and collapse walls, causing 17% of claims.
  • WATER: (weather related): You’d think weather-related water damage would cause more than 7% of the most expensive claims, but it’s at a low 7%. Perhaps it’s because people are more aware of what winter can bring in regards to leaky roofs, frozen pipes that can burst, even the weight of snow and ice damaging structures.

With the wildfires raging all around us, it may be a good time for you to review your policy. Give BMR Insurance a call on 714-838-1911 or click here to email us a note. Make sure to check our LinkedIn page regularly (or follow us!) for industry tips, insurance advice, and information about Orange County.

 

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