According to 2019 data, 5.1% of all insured homes in the US filed a claim. Property damage accounted for almost all of those claims. Property damage includes theft, fire, water, and weather-related damage.
The particulars of what a home is up against will vary by region; water damage is the most common claim in the West, for example, while the claims in the Northeast are more for wind damage. Here are some common claim types that you’ll be running up against in any market, as well as some more state-specific points of concern.
Property Damage That Can Cost You the Most: Fires
Even in the wettest climates fires can still be a problem. Fire claims are the most expensive in the industry; in fact, the average claim is almost $80,000 for fire and lightning damage. And that’s not all – damage from fire and lightning is the second most frequent occurrence when it comes to how homes are damaged.
If something should happen to a home involving fire, repairs can be costly, involved, and take a long time to repair.
Water damage is one of the most common problems homeowners will have to file claims for. Outside the home, water damage can come from natural phenomena like heavy storms and flooding. Inside the home, water damage can result from burst pipes, leaky water heaters, or even poorly sealed bathtubs and showers.
Mold can also be an unfortunate side effect of water damage, especially if the damage occurs inside the home. Damage and erosion that isn’t detected right away can cause mold growth, especially in hot and humid climates.
You may not be able to do anything about predicting the next bad storm, but you can try waterproofing your house to lessen the damage should anything happen. Waterproofing is possible from the inside or outside of your home, and may be a good idea to prepare for accidents.
Property Damage That Can Cost You the Most: Sinkholes
Sinkholes aren’t something you may think of when it comes to catastrophic property damage in Florida (hurricanes!), but did you know that Florida is the number one state for sinkholes in the nation? And as you might guess, Florida homeowners file thousands of sinkhole damage claims each year.
Florida home insurers are required to cover catastrophic ground collapse, but comprehensive sinkhole coverage is usually optional. Sinkhole damage isn’t always predictable either, as detecting sinkholes will largely depend on the conditions of the area at the time, and it’s usually a very expensive test to perform.
Property damage hazards are something that homeowners will definitely want to prepare for, but on the bright side, only a small percentage of homes nationwide need to file claims each year.
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See you at a meeting soon!
The Southwest Florida Real Estate Investment Association is the leading source of SWFL real estate investing events that provide investment education and networking in southwest Florida. We analyze the housing market and foreclosures and provide information, education and networking events in order to build a network and knowledge base for investors and potential investors. Our members include real estate agent, brokers, investors, hedge fund managers, rehabbers, wholesalers and more.
Our SWFL REIA General Meeting is held in Fort Myers where we provide education on hot topics in investing and an opportunity to enjoy the camaraderie of your fellow investors. You’ll get a chance to ask for advice from successful real estate professionals and even make a few deals on your latest projects.
To become a member, anyone can register as an individual, a couple, or a corporation. Being a member opens the doors for endless networking opportunities, advice from members with decades of experience, new ideas from entrepreneurs, camaraderie with those just beginning, and deals and contracts done in the meeting room. For those interested in Cape Coral rental property investment and/or Fort Myers rental property investment, SWFL REIA will be able to provide a network to help launch a successful investment career.
The SWFL REIA is known and respected as a source of current, actionable and useful information about the housing market in the area that we meet.
We meet twice a month.
One of the premier sources for real estate investing networking and education is the SWFL REIA. In the real estate world, the SWFL REIA is different in that they do not do information product sales. Their meetings are focusing on the best ways of investing in real estate by collaborating with other property investors who are sharing their experiences.
We look forward to meeting you at a meeting soon!
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