Homeowners buy insurance to protect themselves from risks. You want to know that if a problem occurs, you can file a claim.
However, many worry about the consequences of filing a home insurance claim. Will doing so cost you more than paying the claim out of pocket? In some cases, you may wish to avoid filing a claim. Instead, pay for the loss out of your pocket. Why do this? It may end up saving you money in some cases.
You Should File a Claim
Let's be clear. If you suffer a significant loss, file a home insurance claim. Provide your insurance agent with information. Let them go to work for you. Let them help pay for your loss. This is very important in situations where you need help recouping what you lost.
Do not feel like you cannot call your agent and talk about your options, either. Many agents will tell you if filing a claim is worthwhile. They may be able to tell you what they can do for you. They might also tell you what can happen long term.
Those Smaller Claims
Filing smaller claims can pose two main problems.
#1: You still have to pay the deductible. This is the amount of money you must pay first before your home insurance policy begins to cover your costs. Many policies have a $500 or $1,000 deductible. Check your policy for specifics. Let's say the kid next door breaks a window. The cost to fix that window is $200. Your deductible is $500. Your home insurance cannot help you here.
#2: Your rates can go up. Filing a home insurance claim can increase your costs over the long term. Those who file multiple claims might expect to see their rates increase steadily. Insurance companies view those who file claims often as a higher risk. They often charge more to cover these costs.
There's a simple rule to keep in mind. File an insurance claim if you need to do so to get back on your feet after a loss. Realize that fraudulent claims may cause insurers to drop your coverage altogether.
Be honest and open with your agent. They will tell you what you can expect from the process. They will also give you insight into what may be best for you today. Take a moment to find out what your options are.
Need home insurance? Look no further. Call McDonald Insurance Group for a fast, free policy quote.