The Top 10 Home Insurance Claims and Their Impact on Your Premiums
Home insurance is a safety net that protects homeowners from unexpected disasters, but not all claims are created equal. Some are far more common than others, and their impact on your future premiums can vary significantly. Whether it’s water damage, fire, or burglary, understanding these claims can help you take proactive steps to reduce risks and keep your insurance costs under control.
In this article, we’ll explore the top 10 most common home insurance claims, their average payout, and how much they could increase your renewal quote.
The Top 10 Home Insurance Claims in the UK
Below is a table outlining the most frequent home insurance claims, their average claim value, and the potential percentage increase in your next premium at renewal. These figures are based on industry averages and may vary depending on your insurer and location.
| Rank | Claim Type | Average Payout (£) | Potential Premium Increase at Renewal (%) |
|---|---|---|---|
| 1 | Escape of Water | 9,000 | 20-30% |
| 2 | Storm Damage | 1,500 | 5-15% |
| 3 | Accidental Damage | 1,200 | 10-20% |
| 4 | Theft/Burglary | 2,500 | 15-30% |
| 5 | Fire Damage | 25,000 | 30-50% |
| 6 | Flood Damage | 32,000 | 30-60% (higher in flood-prone areas) |
| 7 | Impact Damage (e.g. car crash into house) | 8,500 | 10-25% |
| 8 | Subsidence | 15,000 | 20-50% (sometimes leads to policy refusal) |
| 9 | Vandalism | 1,800 | 10-20% |
| 10 | Liability Claims (injuries on your property) | 14,000 | 15-40% |
A Closer Look at Each Type of Claim
1. Escape of Water (£9,000 average claim)
Water leaks, burst pipes, and faulty plumbing cause some of the costliest and most frequent insurance claims. A small leak can quickly escalate into major damage, impacting ceilings, walls, and flooring. Insurers treat this seriously because repeated claims often indicate poor maintenance.
How to Prevent It: Regularly inspect pipes, especially in winter, and fit leak-detection devices.
2. Storm Damage (£1,500 average claim)
Strong winds, heavy rain, and falling trees can cause structural damage to homes, with roofs often being the most affected. While some storm damage is unavoidable, insurers may not cover it if they believe the property was poorly maintained.
How to Prevent It: Keep gutters clear, trim trees near your home, and ensure roof tiles are secure.
3. Accidental Damage (£1,200 average claim)
From spilled paint on carpets to cracked TV screens, accidental damage claims are common but often preventable. Many standard policies don’t include accidental damage, so you may need to add it as an extra.
How to Prevent It: Be mindful when carrying out DIY projects and consider childproofing fragile items.
4. Theft/Burglary (£2,500 average claim)
Break-ins can lead to expensive losses, from stolen jewellery to damaged entry points. Insurers take burglary claims seriously, and repeated claims can make your home seem high-risk.
How to Prevent It: Upgrade locks, install an alarm, and use security cameras or smart doorbells.
5. Fire Damage (£25,000 average claim)
Fires can be devastating, leading to extensive property loss and expensive rebuilding costs. Electrical faults, unattended candles, and cooking mishaps are common causes.
How to Prevent It: Regularly check wiring, install smoke alarms, and never leave cooking unattended.
6. Flood Damage (£32,000 average claim)
Flooding causes some of the most expensive home insurance claims. Homes in flood-prone areas often face higher premiums or excesses, and multiple claims can make insurance difficult to obtain.
How to Prevent It: If you live in a flood-risk area, consider flood barriers and raised electrical outlets.
7. Impact Damage (£8,500 average claim)
Impact damage refers to incidents where an external object, such as a falling tree or a vehicle, collides with your property. While less common, these incidents can be costly.
How to Prevent It: Ensure trees near your home are healthy and maintain clear driveways.
8. Subsidence (£15,000 average claim)
Subsidence occurs when the ground beneath a home shifts, causing foundation damage. It is one of the hardest claims to insure against in high-risk areas.
How to Prevent It: Maintain trees near your home and address cracks in walls early.
9. Vandalism (£1,800 average claim)
From broken windows to graffiti, malicious damage can be costly and frustrating. Some areas are more prone to vandalism than others, and insurers may charge higher premiums accordingly.
How to Prevent It: Improve security lighting and install CCTV if necessary.
10. Liability Claims (£14,000 average claim)
If someone is injured on your property (e.g., a postman slipping on an icy driveway), they may file a liability claim. These can be among the most expensive claims.
How to Prevent It: Keep pathways clear and ensure stairs, handrails, and flooring are safe.
How Insurance Claims Affect Your Premiums
Every claim you make can increase your home insurance premium at renewal. Insurers assess risk based on claim frequency and severity. Below are some key factors that determine the impact on your quote:
- Claim Type: Large claims like fire and flood can have a bigger effect than minor ones.
- Claim Frequency: Multiple claims within a short period make you seem high-risk.
- Claim History: Some insurers will refuse cover if you have a history of subsidence or frequent water damage claims.
- Home Security & Maintenance: If insurers believe poor upkeep led to your claim, they may raise your premium.
How to Keep Your Home Insurance Costs Down
- Increase Your Excess: Opting for a higher voluntary excess can reduce your premiums.
- Improve Home Security: A monitored alarm system or smart security devices can lower burglary-related risks.
- Maintain Your Home: Insurers look favourably on well-maintained properties.
- Only Claim When Necessary: For minor damages, consider covering costs yourself to avoid higher premiums.
Final Thoughts
Understanding the most common home insurance claims helps you take preventative steps and avoid unnecessary financial burdens. While insurance provides peace of mind, too many claims can make it expensive to maintain. By safeguarding your home against common risks, you can protect both your property and your wallet.