What is an occurrence on a homeowners policy?
Asked by: Marcellus Deckow I | Last update: October 5, 2025Score: 4.8/5 (11 votes)
How does the homeowners policy define an occurrence?
In insurance, an occurrence is an incident you're responsible for that leads to damages for someone who is not covered by your policy. When you have an occurrence while your homeowners insurance is active, then you need to alert your insurance company so it can help you pay for the damages.
Is it better to have occurrence or claims made?
The claims-made policy costs at least 35% less when you compare the cost of buying a claims-made policy and the unlimited tail against having occurrence coverage for the same period. The savings increase if you qualify for a free death, disability or retirement tail.
What does occurrence mean in an insurance policy?
An occurrence policy covers claims made for injuries sustained during the life of an insurance policy, even if they're filed after the policy is canceled. They cater specifically to events that may cause injury of damage years after they occur, such as exposure to hazardous chemicals.
What is considered an occurrence?
occurrence. noun. oc·cur·rence. : something that takes place. especially : an accident, event, or continuing condition that causes personal or property damage that is unintended or unexpected from the standpoint of an insured party making a claim.
What Does Homeowners Insurance Cover?
What is an example of an occurrence?
Getting headaches has become a common occurrence for her. Lightning is a natural occurrence.
What is the difference between an accident and an occurrence in insurance?
An occurrence is defined as "an accident, including continuous or repeated exposure to substantially the same general harmful conditions."
What is the occurrence policy of property insurance?
An occurrence policy protects you as the insured from any covered incident that “occurs” during the policy period, regardless of when a claim is filed. It is, in effect, lifetime coverage for the policy period.
What is something that happens an occurrence?
An occurrence is an instance of something that happens repeatedly. The occurrence of Lyme disease is more frequent in New England than it is in other parts of the country. As soon as authorities see an occurrence of rabies, they send warnings out to people who live in the area.
What is a single occurrence?
Single Occurrence means all causes or events which occur within 96 consecutive hours of the first cause or event causing loss or damage, shall be considered as one occurrence.
What is an example of an occurrence policy?
With occurrence policies, your aggregate limit resets every year. For example, let's say you purchased a $1 million occurrence-based general liability policy. In year one, you get sued for $1 million. When your policy renews at the beginning of year two, you'll have another $1 million of coverage to protect you.
Can you switch from occurrence to claims made?
Claims-Made policies provide coverage for 'claims' only when BOTH the alleged incident AND the resulting 'claim' happen during the period the policy is in force! Switching from an "Occurrence" to a "Claims Made" form is the least perilous change.
What does per occurrence mean in insurance?
What is a per-occurrence limit? A per-occurrence limit is the maximum amount your insurance company will pay for a single incident. The payout is calculated after you meet your deductible.
Is claims made or occurrence better?
Key Takeaways: A claims-made policy only covers those that occur and are reported within the policy's timeframe, unless tail coverage is also purchased. An occurrence policy provides lifetime coverage for incidents that take place during a policy period, regardless of when the claim is reported.
Which event is not covered by a homeowners policy?
Important: Read exclusions in your insurance contract. Earthquake, flood, mold, earth movement, and “wear and tear” are some of the perils that are usually excluded. When an insurer writes your homeowners coverage, the insurer is legally obligated to offer you earthquake coverage for an additional premium.
Is homeowners liability per occurrence?
Many homeowners insurance policies provide a minimum of $100,000 in personal liability coverage, meaning the insurance company can pay up to that amount in total to injured persons per occurrence. If you feel you need more protection, higher limits are available.
What is an example of occurrence?
Street-fights are an everyday occurrence in this area of the city. Death was an everyday occurrence during the Civil War. It's still not possible to accurately predict the occurrence of earthquakes. There have been several occurrences of theft in the area recently.
What counts as an occurrence?
An occurrence is an unscheduled absence or late arrival (Not protected by FMLA, WC, etc.). For example, arriving 30 minutes late would count as an occurrence and calling in to use sick leave, vacation, or comp time for a day would be an occurrence.
What is the legal definition of occurrence?
occurrence n
: something that takes place. ;esp. : an accident, event, or continuing condition that causes personal or property damage that is unintended or unexpected from the standpoint of an insured party making a claim.
Are homeowners insurance claims made or occurrences?
Virtually all homeowner's coverages and automobile coverages are “occurrence policies.” With this type of coverage, the occurrence (negligent act and accident) must occur within the policy coverage period or term of the policy.
What is the meaning of payment occurrence?
Payment Occurrence means the settlement or final adjudication (without any ability to further appeal by either party) as to all demands, claims, counterclaims, cross-claims, third-party-claims, damages, fees (including attorneys' fees), costs and expenses, brought and raised, on any matters arising from or related to ...
What is the occurrence deductible?
A per occurrence deductible is like most auto or homeowners insurance you might be familiar with; you pay the $500, and that's the max you'll pay when something happens. But if your deductible is per claim, that means a separate deductible gets applied to every claim filed in a single occurrence.
What is a thing that happens an occurrence?
Some common synonyms of occurrence are circumstance, episode, event, and incident. While all these words mean "something that happens or takes place," occurrence may apply to a happening without intent, volition, or plan. an encounter that was a chance occurrence.
What is the reason for accident occurrences?
Drivers: Over-speeding, rash driving, violation of rules, failure to understand signs, fatigue, alcohol. Pedestrian: Carelessness, illiteracy, crossing at wrong places moving on carriageway, Jaywalkers.
What is notice of occurrence in insurance?
Notice to the insurer of an occurrence must include the time, place, and circumstances of the occurrence, a description of any resulting injury or damage, and the names and addresses of injured persons and witnesses.