Insurance Claims Spike During Holidays. How to Prevent Costly Claims

The last “gift” anyone wants during the holidays is an insurance claim. But some types of insurance claims peak during the holiday season, like water damage claims from frozen pipes and fire damage claims from home cooking fires.

In fact, the holidays are one of the busiest seasons for insurance claims professionals, according to PropertyCasualty360, with the following claim types leading the way.

Home fires: Don’t keep them burning

Malfunctioning heating sources and electrical equipment and out-of-control cooking fires make the holiday season the most damaging — and deadly — time of year for home insurance.

Holiday decorations start more than 800 home fires per year in the U.S., according to the National Fire Protection Association. More cooking fires also occur on Christmas Eve and Christmas Day than any other day, the NFPA reports. And more than one-third of annual fire deaths occur in the winter, according to the Federal Emergency Management Agency.

Stay warm and safe this holiday season with these tips from the NFPA:

• Choose flame-resistant or flame-retardant decorations.

• Use outdoor lights (not indoor ones) for outside decoration. Also be sure to not connect too many light strands together.

• Never leave something cooking unattended on the stovetop.

• Keep kids and pets away from lit candles.

• Send smokers outside to smoke, and provide large, deep ashtrays for cigarette butts.

Winter damage: Protect your home and guests

Winter weather can be tough on your home and visitors even if you don’t live in a wintry state like Minnesota, Alaska, or Maine. Freezing temperatures can occur almost anywhere in the U.S., resulting in frozen pipes, foundation cracks, and ice dams that turn into roof leaks — all of which can lead to home insurance damage claims.

Cold weather also brings the risk of icy sidewalks and steps. If visitors to a person’s home slip on ice, the homeowner could be on the receiving end of a liability claim.

To protect against loss, homeowners can:

• Remove debris from gutters, and install attic roof vents to help reduce the risk of ice dams.

• Winterize home irrigation systems, and detach garden hoses from outdoor faucets.

• Protect interior pipes by leaving a faucet dripping inside the house.

• Insulate basement pipes, other exposed pipes, and your water heater.

• Clear snow and ice from steps and walkways outside your home.

• Ensure exterior handrails are in working order.

Oh, what fun it is to ride: Holiday vehicle safety

Car accidents can happen at any time, but they tend to peak when more people are on the roads. Nearly 110 million Americans will travel by car this holiday season, according to AAA. That many people on the road can turn a simple grocery run into some risky business that ends in a car insurance claim.

Higher volume isn’t the only driving issue during the season. Busy parking lots are where PropertyCasualty360 says rear-end collisions cause several vehicle claims. Icy roads, and intoxicated, distracted and speeding drivers also cause incident claims.

Here are a few tactics to avoid holiday vehicle claims:

• Slow down. Nearly one-third of all traffic fatalities involve speeding.

• Try to avoid driving during high-volume times.

• In parking lots, stay alert and park in well-lit areas at night.

• Keep an eye on the weather forecast, and try to avoid driving during bad weather.

• Give yourself plenty of time to reach your destination. Delays can happen.

• Avoid impaired and distracted driving. Choose a designated driver if you’ll be indulging in holiday spirits, and don’t text while driving.

What’s next: Think twice before filing a claim for package loss

Nearly half (46%) of Americans have had packages stolen from their front door, porch, or mailbox, an Insurify survey found. Almost one-third (32%) have had it happen more than once.

In most cases, homeowners insurance will cover package theft. But filing a claim may ultimately cost more than what the package was worth.

Just 30% of people who’ve had a package stolen said the delivery was worth more than $500. If your home insurance deductible is higher than the package value, you’ll be stuck paying out of pocket anyway. And if the package value exceeds your deductible, it’s still a good idea to consider the long-term effect a holiday claim may have on your premium when your policy renews.

To protect yourself from porch pirates this holiday season, consider using secure drop locations (think Amazon Lockers) or a locked mailbox. Try to schedule package deliveries for when someone will be home, and take packages in quickly. Keep porch lights on during night hours, and never leave packages visible in your car or from the street.