The Craziest Home Insurance Claims

Home insurance claims often involve mundane mishaps like water damage or hail. But what happens when your unique $47,000 garden gnome collection vanishes? For one homeowner, the answer was straightforward: file a homeowners insurance claim.

In the U.S., home insurance companies process claims for about 1 in 19 insured homes—around 5.3% in 2022—each year. Early 2023 figures suggest similar to slightly higher claim frequencies, with increased average claim amounts, pushing overall loss costs to record highs. Insurance professionals routinely handle claims for wind, hail, and water damage. However, once in a while, a peculiar claim emerges. We asked insurers to share their most memorable claims, and their responses were astonishing.

The Craziest Home Insurance Claims

Home insurance generally covers damage, theft, and liability, with exclusions based on the policy. Yet, that doesn’t prevent bizarre claims from slipping through now and then. From airplanes crashing into living rooms to melted TVs and rare space debris, these home insurance claims can be both shocking and enlightening.

The Case of the Stolen Garden Gnomes

While we often hear of teenagers stealing garden gnomes as pranks, these lawn ornaments are typically covered by home insurance. Most wouldn’t file a claim, as deductibles usually exceed a gnome’s value.

David Baddeley, Director of Scottish Trust Deed, was surprised when a claim for stolen garden gnomes crossed his desk. “It wasn’t just a few gnomes,” said Baddeley. “We’re talking about 403 gnomes, each unique.”

The claim proved valid; the homeowner provided video footage and receipts for each gnome purchased since the 1960s, totaling $47,000. He was awarded the full amount but then faced the tedious task of replacing each gnome.

Hot New Gadget

Imagine relaxing by a warm fire, enjoying your favorite movie. This was the homeowner’s idea when he bought a 60-inch flatscreen TV and hung it above his fireplace.

Chris Waltenbaugh, a payment processing expert at Payment Depot, recounts, “Whoops! The heat from a fireplace can melt a TV.” Fire is covered under insurance, but the homeowner ultimately chose not to file a claim due to the deductible.

Fire and lightning claims are rare but among the costliest. The homeowner decided against jeopardizing his positive claim history for a low payout.

When Unexpected Guests Drop-In

Uninvited guests are never welcome, and for Ken Johnson, it was a small aircraft that crashed into his living room through the roof.

Fortunately, no one was seriously injured, though the damage was extensive. Damage from falling objects is typically covered, showing how rare but real these claims can be.

Buried Treasure at the Beach

Matthew Dewen, director of FullTime Cover, recounts a client whose children buried expensive jewelry in the sand while on vacation. After an unsuccessful search, the client filed a claim and was awarded $75,000. “Someone with a metal detector would have been lucky,” Dewen noted.

Total Home Relocation

David Drab, owner of Strong Wall Construction, recalls a tornado that moved an entire house six feet while leaving it intact. “It was like an old-school prank,” Drab said, “but it was an entire house.” Tornado claims are almost always approved.

Hard Times in a Hot Tub

Liability coverage is crucial, as shown by a homeowner whose guest slipped and sued after an injury. Cassie Sanchez from Farmers Insurance shared that $202,000 covered medical bills. Liability claim severity is rising, with 2023 dog-related injury claims averaging $58,545.

The Bottom Line

These wild home insurance claims highlight the value of a homeowners policy. Around 1 in 19 insured homes file a claim yearly. Thankfully, these policies can cover unexpected situations that might otherwise be financially devastating.

Featured image by ferrantraite / Getty Images.