When To Use Homeowner’s Insurance
Home insurance policies are designed to cover costs that would normally cause a severe dent in people’s bank accounts. But when it comes to reporting smaller claims, there are some important things to remember.
Minor damage to a home during a thunderstorm or other act of nature often compels people to call on their insurance company to help pay the cost of repair. A common deductible on home insurance policies is $500. Before filing a claim, consider just how much the cost of repair will be. If it is a mere $50 to $100 over the deductible, then it is not always worth filing the claim. It will return you that extra $50 or $100, but it could also have an effect on your policy moving forward. Remember that the more claims you file, the more it may affect your insurance policy. Similarly, you may ask yourself, “What if the damage is less than the deductible?” In those instances, if you file a claim, you’ll pay for everything, and likely negatively affect your policy.
Continual claims could cause your insurance company to negate your renewal. Quite often, insurance companies consider a series of small claims a precursor to a bigger one that is all but inevitable. However, negating a renewal is not the only move insurance companies will make.
In the wake of a small claim, insurance companies can add a surcharge to a home insurance policy. That means an increase in your premium. So while it may seem favorable to file a claim that would get you $50 to $100 over your deductible, the increase in premium will actually cost more than that in the long run.
A home or auto insurance policy that costs $600 per year might then be raised by 20% over the next three years. That is an additional $360 over three years, which far exceeds that $50 or $100 that was saved by filing that small claim.
Another way to save money is to raise your deductible. You will have to pay less on your premium and you will still be covered for that big disaster in which insurance is definitely needed.
One thing to remember is that insurance companies do not consider homeowner’s policies as a type of maintenance. It is viewed as a policy that attends to damage on a much greater scale. If and when that happens, homeowners should be prepared for that big one with an insurance policy that has not been compromised by a bunch of smaller claims. There are both pros and cons to filing a homeowner’s insurance claim, but with smaller claims, it’s mostly cons. If you’re wondering whether it is worth it to file a home insurance claim, you should carefully evaluate these variables. If you’re still unsure when to use homeowner’s insurance, it may be time to get AmeriClaim’s public adjusters on your side.
Policyholders in the Southeastern U.S. are not alone when it comes to disaster recovery. They have AmeriClaims Public Adjusters to turn to for expert knowledge and experience. AmeriClaims knows when to use homeowner’s insurance and has everything you need to help with the homeowners insurance claims process and get the cash settlements you desire. Take the first step by contacting one of our Georgia, North Carolina, South Carolina or Virginia public adjusters today for a free claims consultation.
