When You Should (and Shouldn't) File a Home Insurance Claim

As a homeowner, you may be wondering when it’s appropriate to file a claim with your home insurance company and when it’s better to handle things on your own. This article, entitled “When You Should (and Shouldn’t) File a Home Insurance Claim,” sheds light on the topic.

First and foremost, it’s important to understand that filing a claim can raise your premiums over time. Therefore, if the cost of repairing or replacing the damage is relatively low, you may be better off covering the expense yourself. For example, if your deductible is $1,000 and the damage to your home is only $1,500, it may be best to pay out of pocket to avoid future premium hikes.

On the other hand, if the damage is significant and you can’t afford to pay for repairs out of pocket, filing a claim is a wise choice. Additionally, if someone is injured on your property, filing a liability claim could protect you from costly legal fees in the long run.

It’s also important to note that insurance companies don’t cover basic maintenance or wear and tear. If something breaks down due to old age or lack of maintenance, a claim won’t likely be approved.

Finally, it’s always a good idea to review your policy regularly, so you understand exactly what’s covered and what’s not. This can help you make informed decisions about when to file a claim and when to handle things yourself.

In conclusion, knowing when to file a home insurance claim can be a tricky decision. But by understanding your policy, considering the cost of the damage, and weighing the potential impact on future premiums, you can make an informed choice.