10 Insurance Statistics That Will Motivate You to Rethink Your Insurance Coverage

By February 3, 2016 Personal Protection
10 Insurance Statistics That Will Motivate You to Rethink Your Insurance Coverage

The pace of modern life is faster than ever, especially with technology evolving at the speed of light. If you are like most consumers, the last thing you think about between work, dinner and [insert the sport of your child’s choice here] practice is insurance.

You, like most, assume that the insurance company you have selected to manage your personal risk has your back.

The truth is, some do. Some don’t.

Here’s the thing. Life is full of risks. Some risks are preventable (or can at least be minimized), some are avoidable and some are completely unforeseeable.

That’s why it’s important to work with a reputable insurance agency dedicated to helping you select the right insurance coverage for your specific needs. Because you never know what tomorrow will bring – but you want to make sure you’re ready for whatever it is.

Now that I have your attention, let’s talk some numbers. Here are 10 insurance statistics that will motivate you to rethink your insurance coverage.

1. Home Inventory

On average, only 48% of homeowners said they prepared an inventory of their possessions to help document losses for their insurers. Having a well organized inventory of your home’s contents can make a big difference in how you will be reimbursed for these items. When was the last time you did a home inventory?

2. Teenage Drivers

More teenagers are involved in motor vehicle crashes late in the day and at night than at other times of the day. Teens also have a greater chance of getting involved in an accident if other teens are present in the vehicle. However, a lot of teen-driving related accidents can be prevented by talking to your teens about distracted driving. Schedule a chat with your teen, today.

3. Superstorm Sandy

Superstorm Sandy was the third costliest U.S. storm, accounting for $18.75 billion in insured property losses in 15 states and the District of Columbia (with New York State, and more specifically Long Island, suffering catastrophic losses), not including National Flood Insurance Program losses. Although you can’t predict when or where the next Superstorm Sandy will hit landfall, you can prepare to make sure you’re ready for the worst-case scenario.

4. Rental Landscape

Although the renter share of all households in the United States is 35.4% (according to an April, 2013 report by the Census), only 37% of renters have renters insurance. In New York City renters outnumber owners, with 69% of households being occupied by renters. Just because you don’t own the unit, does not mean you shouldn’t protect what’s inside the unit.

5. Auto Liability

In 2014, the average auto liability claim for property damage was $3,290, and the average auto liability claim for bodily injury was $16,640. However, based on 2012 statistics, 12.6% of motorists, or about one in eight drivers, are uninsured. It’s important to make sure that you have the right auto policy that will protect you especially if you’re involved in an accident with an uninsured motorist. As with everything in life, you get what you pay for and cheap auto insurance may cost you big time when you file a claim.

6. Homeowner Claims

Homeowners claims related to wind or hail are the most frequent; the costliest are related to fire, lightning or debris removal.  About one in 15 insured homes have a claim each year. Before filing a homeowners insurance claim, it’s important to understand your duties and rights as a policyholder during the claims process. How you handle the claims process on your end could have a strong impact on the resolution of your claim.

7. Valuable Articles

In 2012, jewelry losses were the top claims category based on the value of homeowners contents claims, according to inventory services firm, Enservio. Typical homeowners policies have limits on the dollar amount covered toward loss or damage of personal articles, such as jewelry. Consider adding a personal articles endorsement to your homeowners insurance policy so that your valuable personal property is properly insured.

8. Pets

Dog bites accounted for more than one-third of all homeowners insurance liability claim dollars paid out in 2012. The average cost paid out for dog bite claims was $29,752 in 2012, up 1.2% from $29,396 in 2011. Unfortunately, we live in a litigious society and a simple dog bite can result in a multi-million dollar claim against you. Your standard homeowners insurance may not be enough to protect you in this situation. An umbrella insurance policy will offer that added layer of protection when faced with the worst-case scenario.

9. Cost of Lawsuits

About one in 830 homeowners policies have a liability claim related to the cost of lawsuits for bodily injury or property damage that the policyholder or family members cause to others. As mentioned above, personal umbrella insurance is designed to cover catastrophic situations where a legal award could exceed the limits of your primary liability insurance.

10. Flood Protection

A 2015 poll by the Insurance Information Institute found that only 14% of American homeowners had a flood insurance policy. However, in the Atlantic Coast region alone, there are approximately 2.4 million homes at risk, valued at more than $793 billion. Among the most densely populated metropolitan areas, the New York City metro area, which includes Long Island and the New Jersey coast, has the highest exposure to potential storm surge damage ($206 billion). The next four areas in terms of exposure were Miami ($100 billion), Virginia Beach ($73 billion), Tampa ($55 billion) and New Orleans ($43 billion). The lesson here is, don’t underestimate the hurricane season!

Do you have the insurance protection you need for life’s unexpected twists and turns? If you’re concerned about the level of protection you have in any one of the 10 areas we mentioned above, talk to us. Insurance is our passion.

SOURCE: The Insurance Information Institute.