Let’s start with the good news. Over the past decade through 2024, individual claims of property damage by U.S. homeowners averaged from 5.5% to 6.5% of all homes insured. So, your odds in any given year of sustaining damage that exceeds your homeowner’s policy deductible are pretty low, according to the Insurance Information Institute. Wind and hail typically account for the largest share of claims, followed by water damage and freezing claims. Claim payouts by insurers ranged from $15,000 to over $18,000 through 2022 and with inflation factored in over the last several years, those figures are without question growing higher. Examining reported insurance records shows that 63% receive a full payout covering their sustained damages, while 31% receive most of what they asked for. Depending on where you live and your family make-up, the likelihood of some significant damage from fire, flood, storm damage, theft, or an injury liability claim can be greater. The damage expense you may incur may well exceed annual insurance premiums that you’ve paid over time. Therein lies the real question. Can I sleep well, knowing that if some modest or a catastrophic loss does occur, could I afford to repair my home and/or replace all my belongings? Most of us prefer to sleep well, so we buy homeowners insurance. Need more evidence? Listed here are the most frequent damage incidents homeowners incur and the typical claim amount averages that are paid out by insurers.
Wind and hail damage claims are the most common home insurance claim since they account for 40% of all claims. Average payout? The average of these damage claims is $12,913 per claim, according to the Insurance Information Institute. Â Common problems from wind and hail include blown-off shingles, dents in your siding, and damage to your roof or windows.
Fire and lightning damage claims account for 24% of all claims, but these claim amounts soar. The average payout for a fire or lightning-related homeowners insurance claim is generally around $77,340. The actual amount varies significantly based on the fire severity, the value of affected property, and homeowners policy limits. Â
Water damage claims are typically 20% of all claims. Water damage insurance claim amounts vary significantly depending on several factors, but here’s a general overview of average claim payouts and restoration costs. Based on recent data (June 2025), average water damage insurance payouts typically range from $7,000 to $12,514. Some sources report a higher average of $13,954. Water damage can come from a variety of sources, including heavy rainfall, flooding, or frozen and burst plumbing.
Theft claims are far less in number and claim amount. Theft claims are .5% of all claims. This is a standard part of homeowner’s insurance and can cover stolen belongings from your home, car, or storage unit. Standard policies usually limit personal property coverage to 50-75% of your dwelling coverage. Claims for property theft of personal belongings are affected by full value replacement or depreciated cost. A homeowners insurance policy typically will cover items such as furniture, clothing, electronics, bicycles, appliances and lawn care equipment. The loss settlement will depend on the type of coverage you purchased.
How to negotiate an insurance payout? Darren Impson, President, Paul Davis of Tampa, FL offers sound advice. “We work closely with many, many home and business owners that have experienced damage and rightly seek financial reimbursement from their insurance provider. Our advice is to follow these seven insurance settlement negotiation tips.”
Read and understand the Insurance Company policy coverages. Initiate the Claim as Soon as Possible. Never Admit Fault for the Accident. Stick to the Facts, Never Speculate. Know the Rough Value of Your Claim. Be Patient, Do Not Accept the First Offer. Get Everything in Writing.
