Top 5 Most Common Insurance Claims of the Year—And How to Avoid Them
Every year, insurance companies see the same types of claims come across their desks—some more preventable than others. While we never plan for accidents, understanding the most common insurance claims can help you take simple steps to reduce risk and protect your home, car, and wallet.
Whether you’re a homeowner, a driver, or both, here are the top insurance trends we’ve seen this year—and practical tips to avoid becoming the next statistic.
1. Water Damage (Not Related to Flooding)
The Claim: Burst pipes, leaking appliances, roof seepage, and bathroom overflows are among the most frequently filed claims under homeowners insurance. These aren’t caused by floods (which require separate flood insurance), but rather internal plumbing or weather-related leaks.
Average payout: $10,000–$12,000
How to avoid it:
- Install water sensors near washers, water heaters, and under sinks
- Maintain your roof and gutters to prevent rainwater intrusion
- Insulate pipes and set thermostats no lower than 55°F in winter
- Know how to quickly shut off your water main in an emergency
Insurance Tip: Check if your policy includes water backup coverage for sump pump failures—it’s often an optional add-on worth having.
2. Auto Accidents (Especially Rear-End Collisions)
The Claim: Rear-end collisions top the list of auto insurance claims. Distracted driving, tailgating, and slippery roads are the usual culprits.
Average payout: $4,000–$15,000 (more with injuries involved)
How to avoid it:
- Keep a safe following distance—especially in bad weather
- Avoid distractions like texting or adjusting GPS while driving
- Consider installing a dash cam or automatic emergency braking system
- Keep brakes and tires in top condition
Insurance Tip: Ask about safe driver discounts, telematics programs, or bundling options that can lower your auto liability insurance premiums if you maintain a clean driving record.
3. Theft and Burglary (Home and Vehicle)
The Claim: From stolen packages and break-ins to car burglaries, theft-related claims spike during the holiday season and in areas with high traffic or poor lighting.
Average payout: $1,000–$3,000 for personal items, more for valuables
How to avoid it:
- Install motion-activated exterior lights and security cameras
- Keep doors and windows locked—even when you’re home
- Don’t leave valuables in plain sight inside your vehicle
- Track high-value items with receipts and photos for proof of ownership
Insurance Tip: Not all valuables are covered up to full value by default. Ask about scheduled personal property endorsements for jewelry, electronics, or collectibles.
4. Fire and Smoke Damage
The Claim: Fires caused by cooking mishaps, dryer lint buildup, electrical issues, or holiday decorations are devastating—and often preventable.
Average payout: $40,000–$100,000+
How to avoid it:
- Clean dryer vents regularly
- Never leave cooking unattended
- Use flameless candles and inspect holiday lights for frays
- Install and maintain smoke detectors on every floor
Insurance Tip: Review your fire insurance coverage to ensure you’re covered for full replacement costs, not just market value. Also check for loss-of-use coverage in case you’re temporarily displaced.
5. Slip and Fall Injuries (On Your Property)
The Claim: Injuries from icy sidewalks, wet floors, or uneven walkways can result in expensive medical bills and liability lawsuits—especially during the winter months.
Average payout: $20,000–$75,000+
How to avoid it:
- Keep walkways clear of snow and ice; apply salt or sand early and often
- Fix broken steps, loose handrails, or cracked sidewalks
- Use non-slip mats and clearly mark wet areas inside
- Consider extra lighting near entrances and walkways
Insurance Tip: Make sure your liability limits under homeowners or renters insurance are high enough to protect your assets. Ask about adding umbrella insurance for even more peace of mind.
Final Thoughts: Prevention Is the Best Protection
Insurance is designed to help you recover—but with a few smart habits, you can prevent many common claims before they happen. Reviewing your policies regularly, upgrading your safety systems, and understanding your risk exposure all go a long way toward lowering premiums and avoiding financial stress.
At Famous & Spang Insurance, we’re here to help you navigate the unexpected. If you’re not sure what your current policy covers—or want to explore claim prevention tips tailored to your situation—give us a call. We’d be happy to review your coverage and suggest simple ways to reduce risk for the year ahead.
Call us at 410-272-2300
or
Visit famousspanginsurance.com to schedule your year-end insurance review.
Start the new year smart—by learning from last year’s most common mistakes.
