When Not To File A Homeowners Insurance Claim For many homeowners, deciding when to take advantage of your homeowner’s insurance policy can be a struggle. You pay a premium to have the insurance and protect yourself against potential major financial issues, so it seems obvious that claims should be filed in most cases. However, filing a claim when things like fires, floods and other potential disaster occur can put you in a position where you are paying a higher premium. And perhaps too many claims over a period of time could result in you losing your policy. Each time there is a potential for you to file a homeowner’s insurance claim, you should carefully weigh all of the factors involved to determine if it makes sense to file a claim or more sense to pay for the repairs yourself.
Know Your Policy The most important thing you should do is read your policy and make sure you are clear on all of the terms. You should definitely be familiar with your deductibles and liability. Then, get some repair estimates for the damage that has take place. Compare the costs outlined in these estimates with your policy’s deductible. In most cases, if the deductible is higher than the cost of the repairs, it would make sense to not make a homeowner’s insurance claim. Conversely, you typically always want to make a claim when the cost of repairs exceeds your deductible amount…though there are a few exceptions. It would be recommended that you always make a claim when someone becomes injured on your property. Personal injury claims can be complicated and have the potential to become extremely expensive on the part of the liable party. Filing a claim in such instances can help protect you and your assets.
Some Claims Aren’t Worth It We mentioned some exceptions to the rule of filing claims in every case where the cost of the repairs exceeds the deductible amount outlined in your policy. The rule of thumb here is too try and decide what filing a claim is going to do in terms of increasing your future premiums. If you have the funds to take care of repairs in some cases, it is definitely a consideration to make. If you want to stay in good standing with your insurance company and keep your premiums as low as possible moving forward, perhaps you decide to tackle the problem yourself.
Potential Denial Some insurance companies may deny certain claims. This is why understanding the terms outlined in your policy and contacting your agent is very important. The more you understand your policy, the better chance you will have at understanding what is covered and what is not. That can save you the hassle of filing a claim that is going to get denied anyway. CNC Insurance offers all types of insurance of your home or business. If you are in the Frisco area and need homeowner’s insurance or any other type of policy, give us a call today.