Home Insurance

Homeowner’s insurance is something that is often overlooked. Most people do not consider the benefits of a homeowner’s policy and therefore do not look at how much it is worth. We could not get by without it because the cost of damage is usually too high to pay. There are a few factors that contribute to the value of a homeowner’s policy:

Interior Damage

One of the things that your homeowner’s insurance policy covers is accidental damage to the interior of your house. No one ever stops to think of what all this could cover. Water damage, theft, fire, paint spill, and even glass breakage can be covered by your homeowners policy.

If you don’t think that these claims can add up, consider the following numbers:

  • The average water claim over the last few years involving frozen pipes is around $5500.
  • The average theft claim is $2500.
  • Claims for other interior damage average around $3500.
  • Therefore, the average interior claim is above $4000 per claim.
The likelihood of something happening at some point to the interior of your house is high. Therefore, this section alone is worth over $4000 per incident.

Exterior Damage

Anyone who has ever been through a bad hail storm, knows the value of homeowner’s insurance. Exterior insurance claims make up a good portion of the insurance claims that are filed. Storms cause their fair share of damage to houses. Some common causes of exterior claims include:

  • wind damage
  • hail damage
  • lightning damage
  • fire
  • and falling debris
If you live in a wooded area, you are at risk for all of these claims. Lighting could strike a tree near your house and fall through the roof during a storm. You could have water damage and fire as a result. The average fire or lightning claim on a house is around $25,000. For wind and hail damage, the figure is over $7000. This means the average exterior claim is around $16,000.

Total Destruction

The most common insurance is to cover the event of total destruction of the house. At this point, you will receive much more than you ever paid into your policy premiums. The total replacement cost of homes can be a lot of money. The average home price in the country is over $250,000. Therefore, if you lose an average size house, you will receive $250,000 worth of benefits from your insurance company.

Total Benefits

While a total loss might be rare, most people will experience some sort of loss in their lifetime. Whether it is an interior or exterior claim, you will probably have to deal with one at some point. The average dollar amount for all claims is about $7500. Therefore, even if you only filed one claim over the life of your policy, it is worth $7500 to you. This makes homeowner’s insurance well worth the price that you have to pay for it.

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