Scenario 1:
A coastal community is hit by a hurricane, leaving many homes and businesses with extensive wind damage and flooding.
RELATED STATS:
- Hurricane impacts can range from minor wind damage on a roof to a total loss, especially in cases of catastrophic flooding.
- U.S. homeowners collectively spend approximately $20 billion per year repairing their homes after storms.
SOLUTION:
- Homeowners Insurance and Commercial Property Insurance can cover repairs and reconstruction following wind damage from a hurricane, while a separate Flood Insurance policy is needed for flood damage. Learn more
Scenario 2:
A homeowner insured their property several years ago and has since completed a kitchen remodel and added a detached garage.
RELATED STATS:
- After a covered fire loss, the homeowner learns that the cost to rebuild the home is substantially higher than the dwelling limit shown on the policy.
- The renovations and increased labor and material costs were not fully reflected in the home’s replacement cost estimate.
SOLUTION:
- Regular coverage reviews and updated replacement cost valuations can help homeowners and insurance professionals determine whether Coverage A (Dwelling Coverage), Extended Replacement Cost Coverage, Inflation Guard, or Ordinance or Law Coverage remain aligned with the home’s rebuilding costs. Learn more
Scenario 3:
A homeowner discovers roof damage and water intrusion after a severe summer thunderstorm brings heavy rain and hail to a neighborhood.
RELATED STATS:
- According to the Federal Emergency Management Agency (FEMA), just one inch of water can cause approximately $25,000 in damage to a home.
- Rising construction and labor costs are also making all types of property claims more expensive.
SOLUTION:
- Homeowners Insurance can help cover many weather-related property losses, while Flood Insurance offers protection against flood damage that is typically excluded under standard Homeowners policies. Personal Umbrella Insurance can provide additional liability protection. Learn more
Scenario 4:
A home rented out as an Airbnb is severely damaged after teen guests throw an unauthorized party at the property.
RELATED STATS:
- The homeowner estimated damages at about $7,000, not counting lost income from a canceled booking.
- Guest damages to a short-term rental home can cost many thousands of dollars or more, and homeowners can also be held liable for third-party injuries that occur in the home.
SOLUTION:
- A homeowner who allows vacation rentals in their home would need a Homeowners Insurance policy with an endorsement for short-term rental use. Personal Umbrella Insurance can provide additional liability coverage. Learn more
Scenario 5:
A sports memorabilia collector adds an iconic baseball jersey to their collection.
RELATED STATS:
- Sports memorabilia can be worth a few hundred to millions of dollars.
- In 2024, a jersey worn by Babe Ruth sold at auction for more than $24 million.
SOLUTION:
- A standard Homeowners’ Insurance policy might not provide adequate protection if the jersey is lost, damaged, or stolen. To ensure prized items are covered, a Personal Articles Floater policy is needed to safeguard investments. Learn more
Scenario 6:
A child is seriously injured while playing on a trampoline at a neighborhood friend’s house.
RELATED STAT:
- The homeowner could be sued for millions of dollars in damages.
SOLUTION:
- Homeowners Insurance can help pay for medical expenses, legal defense, and settlements. Personal Umbrella Insurance can provide additional liability limits. Learn more
Scenario 7:
A homeowner is sued after their pet dog bites a guest, causing serious injuries.
RELATED STAT:
- Dog bite lawsuits can vary significantly in size, potentially reaching multi-million-dollar losses for homeowners.
SOLUTION:
- Homeowners Insurance and Personal Umbrella Insurance can help pay for legal fees, settlements, and more. A lawsuit may exceed Homeowners Insurance coverage limits, or possible dog exclusions could leave coverage gap, so a Personal Umbrella can provide greater protection through increased liability limits above and beyond standard Homeowners policies. Learn more
Scenario 8:
A home located in a community hit by a hurricane has significant flood damage, displacing the family for several weeks.
RELATED STATS:
- Climate change has increased the frequency and severity of flood events, including in areas that previously were at low or moderate risk for flooding.
- Between reconstruction costs, the replacement of household belongings, and hotel and food expenses, a family could face a total loss of tens of thousands of dollars.
SOLUTION:
- Flooding is excluded in most Homeowners Insurance policies. Flood Insurance can cover rebuilding costs, additional living expenses, and more in the event of a flood. Learn more
Scenario 9:
A homeowner is sued after his vacant property catches fire due to electrical problems, damaging the home and neighboring properties.
RELATED STATS:
- The home could be a complete loss and also cause significant damage to nearby properties.
- Bodily injury claims may also be made by anyone hurt in the fire.
SOLUTION:
- A Homeowners Insurance policy that is designed to cover a vacant property can help cover these losses. Learn more
Scenario 10:
A home has extensive water damage due to a frozen pipe that burst after a cold front.
RELATED STAT:
- Water damage from a burst pipe could cost many thousands of dollars.
SOLUTION:
- Homeowners Insurance can cover the cost of repairing water damage as well as additional living expenses. Learn more
Scenario 11:
Convective storms with large hail cause significant damage to homes and cars in Midwest neighborhoods.
RELATED STAT:
- Hail can damage roofs, windows, siding and more, necessitating costly repairs.
SOLUTION:
- Homeowners Insurance can help owners recover from this type of loss and may include a separate wind and hail deductible of between 1% to 5%. Learn more
Scenario 12:
Wildfires are now a year-round risk in many regions across the western U.S. and Canada.
RELATED STAT:
- Morningstar DBRS estimated insured losses of the January 2025 southern California wildfires will exceed $30 billion.
SOLUTION:
- Homeowners policies often exclude or limit wildfire claims. Wildfire Insurance can cover the costs associated with a fire. Additionally, Burns & Wilcox clients can benefit from our partnership with Wildfire Defense Systems, which provides an additional layer of protection for homes against losses due to wildfires. Learn more
Scenario 13:
A homeowner’s roof is partially torn off during a convective storm.
RELATED STATS:
- Convective storms can damage roofs to the point of needing a full replacement, in addition to subsequent water damage and other losses.
- In 2024, there were 27 individual weather and climate disasters with at least $1 billion in damages each.
SOLUTION:
- Homeowners Insurance may cover roof damage based on Replacement Cost Value (RCV), Actual Cash Value (ACV), or a roof settlement schedule outlined in the policy. Learn more
Scenario 14:
A collector loses a rare, high-value sports card in a home fire.
RELATED STATS:
- Trading cards, autographed jerseys, and other rare sports memorabilia can be worth hundreds of thousands to millions of dollars.
- Standard Homeowners Insurance policies would not typically cover these high-value items, leaving homeowners potentially exposed to major losses.
SOLUTION:
- A Personal Articles Floater can insure high-value collectibles for their full value and offer worldwide coverage for a wide variety of losses. These policies usually feature no deductible. Learn more
Scenario 15:
A water main break floods a homeowner’s basement, destroying the home’s water heater, air conditioning unit, and heating system.
RELATED STATS:
- Water damage repairs can cost thousands to tens of thousands of dollars, depending on the extent of the damage.
- Water main breaks, sewer backups, and burst pipes can lead to six-figure losses if major systems or structures are affected.
SOLUTION:
- Homeowners Insurance typically covers water damage from internal sources such as burst pipes but often excludes damage due to water entering from outside systems. Optional insurance enhancements, such as a Water Backup Endorsement, can help close these gaps. Learn more
Scenario 16:
Kansas City may allow homeowners to register their properties as short-term rentals during major events like the World Cup.
RELATED STAT:
- Short-term rental activity can lead to significant financial risks including property damage and lawsuits over guest injuries.
SOLUTION:
- Homeowners Insurance, Short-Term Rental Endorsements, and Personal Umbrella Insurance can help protect homeowners who rent out their properties during major events. Learn more
Scenario 17:
A powerful winter storm dropped more than 2 feet of snow across parts of the Northeast U.S., putting homeowners at risk for ice dams, roof collapses, water intrusion, and hazardous walkways.
RELATED STAT:
- AccuWeather estimates the February 2026 blizzard could cost between $34 billion to $38 billion in total damage and economic loss across the Northeast U.S.
SOLUTION:
- Property damage from snow, ice, and wind can be covered under Homeowners Insurance, which can also respond to slip-and-fall injuries on residential property. Additional liability coverage through Personal Umbrella Insurance is often recommended. Learn more
Scenario 18:
A severe convective storm sweeps through a community and leaves hundreds of homes with significant hail damage to roofs, siding, windows, and more.
RELATED STAT:
- Hail-related losses have surged in recent years, with new data showing that more than 43.5 million U.S. properties are exposed to moderate or greater hail risk, totaling an estimated $17.84 trillion in reconstruction costs.
SOLUTION:
- Hail damage to residential properties can be covered under Homeowners Insurance, while Commercial Property Insurance can respond to hail-related losses for commercial properties. Learn more
Scenario 19:
A homeowner decides to list their home for rent after relocating and being unable to sell the property due to reduced buyer demand.
RELATED STATS:
- Zillow recently reported that 2.3% of rental listings had previously been listed for sale, which is the highest level since 2022.
- Water damage, fire, and liability claims involving rental properties can cost hundreds of thousands of dollars or more.
SOLUTION:
- Homes converted into rentals may require Dwelling Fire Insurance instead of a Homeowners Insurance policy. Property owners may also need Personal Umbrella Insurance and Loss of Rental Use Coverage. Learn more
Scenario 20:
A homeowner sought Flood Insurance for a property in New York with multiple structures, including barns and guest houses.
RELATED STAT:
- The National Flood Insurance Program (NFIP) could not adequately cover the property due to its value and the number of buildings.
SOLUTION:
- Burns & Wilcox was able to offer a comprehensive Flood Insurance program in the private marketplace to cover the full value of the property, its secondary structures, and other benefits including loss of use. Learn more
