When To File A Homeowner’s Insurance Claim

We pay a lot of money for homeowner’s insurance on our house. This protection generally reimburses us for stolen items as well as damage caused by floods, fires, tornadoes, and other weather-related disasters.

However, there are some drawbacks to filing a claim when things go wrong. Insurance companies will often find a way to deny or lowball your claim, making it so you get less money—and not enough to pay all your damages. Plus, if you do file a claim, it can affect your premiums in the future. Your insurer will be more likely to raise your rates for prior claims—just like they do for auto insurance claims.

Because of this, many homeowners are unsure what to do to avoid issues and disputes with claims. Here are some situations in which filing a claim will be to your advantage.

The Cost is More Than the Deductible

Just because your home suffered damage doesn’t automatically mean you should file a claim. It’s good to consider other things, such as the cost of the damage. So obviously, if your deductible is $1,000, you don’t want to file a claim for $500 in damage. That doesn’t make sense—just for the damage out of pocket. Even if the damage in this case is $1,100, it may be better to just pay the cost yourself without getting the insurance company involved.

That’s because when you file a claim, it is reported to the Comprehensive Loss Underwriting Exchange (CLUE). All insurance companies have access to this database and can see any claims you have made. Having multiple claims against you can raise your premiums or even cause an insurer to not renew your policy.

The Damage is Extensive and Covered

Don’t contact your insurer for every little maintenance item. Minor repairs are typically not covered under your policy. Instead, file a claim for more serious matters, such as fires and floods.

Also, make sure the damage is actually covered under your policy before trying to file a claim. Even denied claims are reported to CLUE and can negatively impact you. So double-check before filing a claim. Otherwise, you’re just wasting your time.

You Don’t Have Any Prior Claims

Insurance companies frown upon those with multiple claims, especially in a short period of time. They want clients who don’t regularly file claims, as this causes the insurance companies to lose money. Those who file multiple claims are more likely to see premium increases and even non-renewals. Therefore, think about the ramifications before filing a homeowners insurance claim. If you don’t have any prior claims, the insurance company is more likely to take you seriously.

Seek Legal Help

Homeowners insurance claims can be complicated. Getting the amount of money you deserve for your home’s damage is not always an easy task.

These situations can turn into huge legal battles. Get solid legal advice from Fort Lauderdale homeowners insurance attorney Edward J. Jennings, P.A. He’ll fight for your legal rights. To schedule a consultation, fill out the online form or call 954-764-4330.

Resource:

bankrate.com/insurance/homeowners-insurance/when-to-file-a-home-insurance-claim/