3 Major Homeowners Insurance Events You Should Expect

By the Mercury Team

Buying (or even renting) your first home is exciting, but it also comes with a lot of responsibility. Suddenly, you’re on the hook if your roof starts leaking or a window breaks. And while you’re picking out paint colors, furnishings, and setting up your electronics, you’re probably not thinking too much about your insurance coverage.

Major insurance events can, and do, happen when you least expect them, however. So it pays off to be proactive about choosing the right coverage for your situation. Here are three big things you need to be prepared for and the homeowners insurance coverage types that fit each situation.

Event 1: Homeowners Insurance for Natural Disasters

Natural disasters might feel like once-in-a-lifetime events, but the past few years have shown that they’re increasingly common. And you might be wondering whether home insurance covers natural disasters. The answer depends on where you live. For instance, you may face risks like hurricanes and tropical storms if you’re along the East or West Coast, wildfires in the West and drought-prone regions, and flooding in areas near waterways, in heavy rainfall zones, or in low-lying terrain. Many states across the Midwest and South also deal with wind and hail storms throughout the year.

Homeowners insurance can help cover repair or rebuilding costs if your property incurs damage from these disasters. But here’s the catch: Not all disasters are automatically covered. For example, most standard policies do cover storm damage but exclude flood and earthquake damage, meaning you probably need a separate flood policy through the National Flood Insurance Program (NFIP) or additional earthquake coverage, depending on your region.

Proactive steps to take now:

• Research your location’s risk profile by looking at online flood maps and wildfire zones.
• Consider upgrades like storm shutters, sump pumps, or defensible landscaping to minimize natural disaster damage.
• Find an insurance agent who can help you identify whether you need extra coverage for your area.

Event 2: Protecting from Accidental Property Damage

Not all home insurance claims come from natural disasters. In fact, the most common claims are accidental. A pipe bursts in your bathroom and floods the living room below. A grease fire gets out of control and destroys part of the kitchen. Or a tree in your yard falls into your neighbor’s house.

Your homeowners insurance will cover water damage, including water cleanup and replacing flooring, and even damaged appliances. And the liability coverage within your homeowners policy can help pay for repairs to your neighbor’s home, avoiding a potentially messy dispute.

But here’s what many first-time policyholders don’t realize: Regular home maintenance matters. Insurance companies expect that homeowners will take reasonable steps to keep their property in good shape. If the damage comes from neglect — say, a leaky roof you never fixed that led to a major collapse — your claim could be denied.

Pro tips for first-time homeowners:

• Schedule seasonal maintenance checks on things like HVAC and plumbing systems, water heaters, pipes, and gutters.
• Replace worn-out appliance hoses, and check smoke and carbon monoxide detectors.
• Keep maintenance records. Saving receipts and taking photos that document the upkeep of your home can help with smoother claim approvals.

Event 3: Home Liability Claims

You’re probably mostly thinking about home insurance through the lens of protecting your own stuff. But your liability coverage will cover you financially if a guest trips on a loose step and breaks an ankle, a contractor falls off the roof and gets injured while replacing flashing, your pet bites someone, or your kid hits a ball through the neighbor’s window.

In these cases, liability coverage can help pay for medical bills, legal fees, and property repair costs so you’re not financially on the hook. Many policies include liability protection for incidents that happen off your property, too, like if you accidentally cause damage while traveling.

How to Prepare for Major Insurance Events

Insurance shouldn’t just be something you think about after a disaster. Here are a few practical ways to prep for the unexpected:

Review Your Policy Annually

Make sure your coverage reflects your current needs, especially if you’ve bought new furniture and gadgets or made upgrades.

Create a Home Inventory

Snap photos of your belongings, keep receipts for big purchases, and store inventory lists digitally. This can make the claims process much faster.

Understand Coverage Limits and Deductibles

Could you comfortably pay your deductible amount in an emergency? Coverage limits define the maximum amount your insurance will pay for a covered loss, while deductibles are the out-of-pocket costs you must pay before coverage kicks in. Understanding both helps you avoid surprises in the event of a claim.

Work with the Right Provider

Insurance is about having someone in your corner. Mercury Insurance offers customizable policies and bundling options that will give you the right amount of coverage specifically tailored to your home, family, and peace of mind.

If you’re renting now or stepping into your first home purchase, understanding homeowners insurance coverage types and how they can protect you is one of the smartest financial moves you can make. From natural disasters to everyday accidents to unexpected liability risks, these major events can cost tens of thousands of dollars or more.

A proactive approach, paired with the right homeowners or renters policy, takes the stress off your shoulders. With Mercury, you can build cheap home insurance coverage that’s personalized and ready to protect you against the unexpected. That way, you can focus on making your space truly feel like home. Contact us for a fast, free quote today!