New Research Reveals the 5 Most Expensive Causes of Residential Property Damage

New Research Reveals the 5 Most Expensive Causes of Residential Property Damage
Insurance carriers want to prevent claims from being filed just as much as homeowners want to prevent damage to their properties. Considering this, insurance carriers have a huge opportunity to add value to their clients by educating them about preventive maintenance and ways to reduce risk around the home. However, the relationship between insurance carriers and homeowners is all too often nonexistent, which results in more claims, less profitability, and heartache.
Mitigate Insurance Risk with a Property Inspection
Yes, accidents can happen at any time and create property damage regardless of the preventative measures that were taken. The difference is that insurance carriers that take the time to complete an in-person property inspection and identify any gaps in coverage can give homeowners some peace of mind. Going the extra mile and walking homeowners through potential risks will lead to stronger relationships, loyal customers, and–ideally–less property damage.

5 Most Expensive Causes of Property Damage
When talking to homeowners, it’s important that insurance carriers make them aware of some of the biggest threats impacting their properties. Recent research reveals the five most expensive causes of damage to residential properties:

1. Fire
According to a study of homeowner’s insurance claim data from 2009 to 2016, fire is the most expensive cause of property damage. While some fire-related damage is a result of a natural disaster (such as a wildfire), other claims due to fire (an electrical fire, for example) could have possibly been prevented with a property inspection.

2. Hail
Hail is the second most expensive cause of damage to residential properties. While hail is a weather ailment that can’t be prevented, it’s critical that homeowners address hail damage as soon as it occurs to prevent further property damage. Hail damage is most commonly experienced on the roof, but can also harm windows, siding, and more.

3. Non-Weather Related Water
Non-weather related water issues such as plumbing, sewage, or appliance leaks can devastate a property and lead to significant damage. A property inspection and routine home maintenance can help to significantly reduce this type of damage from occurring.

4. Wind
It’s no secret that wind is responsible for a high number of insurance claims. Offering a seasonal property inspection gives insurance carriers an opportunity to make homeowners aware of trees that need to be pruned or fixtures on the property that need to be secured to prevent damage from wind.

5. Weather Related Water
Last, but certainly not least, weather related water is to blame for costly insurance claims. Excessive precipitation and freezing temperatures can lead to massive damage from leaky roofs and frozen pipes that burst.

It’s important that insurance carriers address these key areas when conducting a property inspection and make homeowners aware of ways that they can mitigate the risk of damage.

Our team at Insurance Risk Services has been partnering with property and casualty insurance carriers for more than 35 years to provide them with accurate underwriting support in the form of in-person property inspections. Our thorough inspection reports highlight areas of vulnerability and help identify additional opportunities to serve homeowners.

Contact us at Insurance Risk Services to learn how a property inspection can help you to mitigate risk and build loyal relationships with homeowners.