When to file and insurance claim
Knowing when it’s appropriate to file an insurance claim can help you better manage a significant loss. Homeowners’ insurance typically covers your structural property, property personal property, personal liability, and loss-of-use cost. Although this does vary between insurance companies and policies. Understanding what your insurance policy covers can help you know when it’s appropriate to file an insurance claim. Here’s when you should and shouldn’t file a home insurance claim.
Homeowners insurance is not designed for minor damage. Homeowners insurance is built for catastrophic events that can cause total loss or an abundance in repair costs. An example of when you should not file an insurance claim is when repair costs are lower or very close to your deductible price. It’s important to not file an insurance claim during this time because filing an insurance claim would raise your premium and overall end up costing you more than it would to hire an outside source.
Another example of when you should not file an insurance claim is when your policy excludes the damages. Knowing what your insurance policy covers can save you time and allow you to fix the damage faster than it would wait to get denied. File an insurance claim is not a” Filing doesn’t hurt” proposition. Always consider getting advice from your insurance agent before you file a questionable claim. In addition, having an abundance of recent claims makes you, high risk, increases insurance rates, and could potentially cause policy non-renewal. Make sure to allocate and consider the consequences of filing an insurance claim and measure the pros and cons of doing so.
So when do you file a claim? A good rule of thumb to follow when considering filing an insurance claim is to check if the estimate and repair cost is significantly higher than your deductible. It wouldn’t be a wise idea to file an insurance claim below your deductible as you will not receive any money from the insurance company and this may cause your premiums to go up. Additionally, you should learn what your insurance policy covers and what it excludes. If you know your insurance policy covers the damage and your home has extensive damage filing a claim would be beneficial.
