The Top 5 Home Insurance Claims and How to Avoid Them

In 2023, £2.55bn was paid out to home insurance claims in the UK, a rise of almost 10% compared to 2022 (£2.33bn).

The cold and wet winter of 2023 acted as a significant driving force in the rise of claims, with storms hitting the UK hard, according to the Association of British Insurers (ABI).

With the rise of claim costs affecting insurers and policyholders across the country, we look at some of the most common claims we’ve experienced first-hand and how you can avoid them.

Accidental Damage

Accidental damage is one of the most frequent types of claims we see, with an increase of 11% between 2022 and 2023. Standard accidental damage coverage typically includes mishaps like spilling a glass of Merlot on a white carpet or breaking a mirror. Extended accidental damage, however, is split between building and contents.

For buildings, this might cover incidents such as drilling through a pipe or damaging fixtures. For contents, it includes damage to personal belongings like electronics and furniture.

Ways to avoid accidental damage include:

• Using protective measures such as coasters, placemats, and coverings where possible.
• Moving obstacles like bags and boxes under tables or into cupboards to reduce tripping hazards.
• Keeping wires tied together in a safe place to keep the floor clear.
• Securing carpets and rugs to prevent falls.
• Storing breakable objects lower down to minimize the chances of expensive mishaps.

Important note: Not all home insurance policies will include accidental damage or will only have a standard level of cover. Extended accidental damage cover will protect you from features like above but will come at an extra cost to your insurance premium.

Escape of Water & Freezing

If not prevented, water damage can cause costly, sometimes irreversible harm to your home.

The ABI reported escape of water claims can cost over £9,000 on average.

With heating costs rising throughout 2023, many homeowners were more conservative with the amount of time their heating was on for. Not using your heating at all can increase the risk of escaping water.

Ways to avoid escapes of water include:

• Keep your heating on for small amounts of time at a lower heat. This can reduce the chances of pipes freezing, corroding and, eventually, bursting.
• Check seals around water-based appliances like baths, showers and sinks.
• Know where your stopcock is in case you need to turn your water off. This is usually found beneath your sink.
• Inspect visible pipes regularly for signs of wear and tear.
• Ensure your pipes have sufficient insulation to prevent moisture build-up, reducing the risk of rusting.

Storm Damage

Storm damage is harm caused to your home by storms – the name describes it perfectly! This is anything from heavy rainfall and strong winds to debris caused by storms.

You may feel relatively defenceless against storms when protecting your home, but there are certain measures you can take to reduce the impact of storm damage:

• Check the roof from your attic or loft for holes or look for abnormalities from the front or back of your property. If anything looks out of place, call a professional to come and fix the problem.
• Trim trees and branches to reduce the risk of potential debris landing on your home.
• The best time to do this is at the end of autumn when dead leaves may cause blockages.
• Double-check outside appliances like barbecues and tables are stored in sheds or garages so they don’t become potential projectiles.

Theft/Burglary

Preventing theft is something every homeowner has thought about at some point in their life.

In 2023, theft volumes in home insurance claims were up 15% on the previous year but were still lower than pre-Covid levels.

There are some preventative measures you can take to protect your home from unwanted visitors:

• Install suitable alarm systems and detectors.
• Ensure all windows and doors have locks or latches.
• Close all windows and doors when leaving the house unoccupied.
• Conceal valuables in out-of-sight areas.

Fire Damage

Fire damage can cause stress to homeowners, no matter how significant the damage.

It’s always good to have protective features in place to limit the chances of fire:

• Ensure all plugs and electrical appliances are working safely.
• Install smoke detectors. If already installed, check frequently.
• Store flammable items away from the kitchen.
• Maintain heating appliances and check regularly.
• Remember to put out open flames, like candles. Keep them away from curtains.

Have any questions about claims? Contact us here.

References

https://www.abi.org.uk/news/news-articles/2024/4/weather-damage-insurance-claims-worst-on-record/