Deciding If You Should File a Home Insurance Claim

Should you bother filing a homeowners insurance claim?

While your homeowners insurance is there to protect your property, belongings, and personal liability, this does not mean you should use your insurance coverage to deal with every incident that comes your way. In fact, filing claims for minor damages or issues could actually harm you in the long run. Here are some things to consider when deciding if you should file a home insurance claim.

Your Premiums Will Increase

Every time you file a claim, your insurance rates will increase. On average, a single claim can raise your premiums as much as 9%. However, different types of claims will have a different impact on your rates. For instance, while a personal liability claim might result in premium increases as high as 14%, a claim for wind damage might only increase your premiums by 6%.

Minor Issues

If you experience small or isolated issues with your home, such as a broken window or a couple of missing roof shingles, it may not be worth it to file a claim. When taking premium increases into account, filing a claim could cost more than simply paying for the repairs out-of-pocket. Additionally, filing multiple claims in a short period of time could actually result in the cancellation of your policy altogether. So, it’s not advised to file a claim for every little problem that comes your way.

Serious Problems

That being said, it’s important to use your insurance coverage to address major issues and catastrophic events. For instance, always use your coverage to address personal liability issues, a home robbery, or major damages to your home. Generally, if the cost of a claim far exceeds the cost of your deductibles, you should file a claim.

These are some of the things to consider as you decide whether you should file a home insurance claim or not. Do you have additional questions regarding your homeowners insurance? If so, contact the experts at Pierce Insurance Group; our dedicated team is eager to assist you with all your coverage needs today.