In reality, most of our fears pose minor risks. However, we overlook the possibilities that do endanger us– like financial threats from inadequate insurance coverage. We’ve done some research to expose the truth, refute our fears, and gain insight on real everyday liabilities. So let’s look at the stats, and check out the facts!
1. Shark Attacks vs. Water Damage
Despite what ‘Shark Week’ says, it’s easy to be scared of a 12-foot great white! But though shark attacks seem daunting, but they occur far less frequently than we assume. In fact, there are only around 10 deaths from shark attacks each year. Let’s compare this to the risk of water damage in your home.
Water damage may not scare you, but the potential financial risks might! It’s estimated that 1 in 3 Americans will face water damage to their home within their lifetime (compare that to 1/11.5 million for shark attacks!) Though the majority of damage is caused by pipe leaks, other sources include: leaky roofs, broken windows, and flooding. Verify your insurance policy to ensure that you have sufficient coverage. Even withhomeowners insurance, your policy might not cover the complete cost of the damage. And without insurance, the average costs of repairs could exceed $20,000. Shark attacks are rare, while more than 45 billion insurance claims are filed annually from water damage in the U.S!
2. Lightening vs. Theft
Being struck by lightening seems improbable, and statistics confirm it. The chance of being struck by lightening is 1/ 1,000,000!
Compared to one in a million, it’s a one in six chance for burglarized homes in the U.S. This is an exceptionally high incidence rate, with loss expenses averaging just below $2,000. Luckily, there are ways to decrease the chance of home burglary, and to prepare as a precaution.
- Lock your doors and windows—It’s important to do this each
time you leave your home. This may seem obvious, but it’s estimated that
break-ins through first floor windows contribute to 23% of the total statistic.
- Protect the front door — Around 1/3 of thieves use the front
door, so install a double key deadbolt for extra protection.
- California Homeowner’s Insurance—It’s important to review
your homeowner’s insurance coverage each year. If your home is burglarized,
your policy will only provide coverage for items listed on the home inventory. Therefore,
it’s crucial to maintain an accurate account of all valuable items. Keep track
of serial numbers, hold onto receipts, and take pictures of the big-ticket
3. Flying vs. Fire
Airplanes are amazing, and allow us access to infinite travel possibilities. But the concept of traveling at 20,000 feet can still be frightening! Nonetheless, flying is a fast, reliable form of transportation, with a mere 1/11 million chance of flight error.
Fires, in contrast, occur often and affect an average of 397,650 homes annually. Fire damage is the most common damage to a home, and potentially the most devastating. Typically, homeowners insurance will insure both the building, and assets within it. However, most policies only insure the contents up to a certain percentage, usually 50-70% of the building coverage. Additionally, there are limits on the amount of moneyallotted to insure individual objects. So supplemental insurance should be considered for expensive items in your home, such as jewelry or fine art.
Fluctuating home values, whether from major renovations or a expanding housing market, will affect your policy. To ensure sufficient coverage, it’s important to check your home value each year. If the value goes up, the insurance must increase as well. Regularly update your replacement cost coverage, and inform your insurer after home improvements.