When to Avoid Filing an Insurance Claim

Say you’ve been paying home insurance since you moved in 5 years ago. The average homeowner’s insurance is anywhere between $500-$2000 per year. Maybe you pay $500 a year. As an example, say a big windstorm causes part of your fence to blow down, which will cost $950 to fix. Your deductible is $500 for a claim, which leaves the insurance company to pay $450. The claim is not worth much more than the deductible, and in this case it’s worth more to pay for the damages out of pocket. This is because the average homeowner’s policy can increase as much as 33% or more after a claim has been made. This means, your policy would increase $165 a year, which will end up costing you more than the claim would have within a three-year-span. Also, if you own more than one property, having one claim or more on your record could make you subject to a surcharge on all of your policies.

If you had to file another claim, it may increase your insurance further, or cause you to be non-renewed. Always consider the amount of your deductible versus the total the claim will cost before you decide whether to file a claim.

Remember, your claims report plays a big role in the cost of your homeowner’s premium. It’s important to always call your insurance agency and ask questions before filing the claim.

Insurance professionals will never discourage a client from filling a claim. We just want to make sure you are properly advised.

 By: KayLynn


Do you have questions about your insurance? Find an insurance agent near you with our Agent Finder

Buzz Your
Insurance Agent

Search for a local agent with our agent finder map.

Agent Finder

Search All Blogs

Search
Generic filters
Exact matches only
Search in title
Search in content
Search in excerpt

Buzz Your
Insurance Agent

Search for a local agent with our agent finder map.

Agent Finder

Want to learn more about
our blog writer?

Read more about KayLynn's background.

Search All Blogs

Search
Generic filters
Exact matches only
Search in title
Search in content
Search in excerpt

Do You Still Need Life Insurance After Age 65?

How Life Insurance Can Help into Retirement

Why Life Insurance Is Such a Good Bet

A Practical Way to Protect Your Family

Why Permanent Life Insurance Is Still Popular

Is Permanent Life Insurance the Best Choice for You?

Why Everyone Should at Least Have a Small Life Insurance Policy

Even a Smaller Life Policy Can Be Meaningful

Life Insurance 101: What Everyone Should Know

Here are the Basics You Should Knowledgeable

Buying Life Insurance When You Have the Most Options

When Is the Best Time to Buy Life Insurance

Unique Situations That Call For a Life Insurance Quote from an Independent Agent

Your Lifestyle May Impact Your Ability to Get Life Insurance

Why Term Insurance Is So Popular

More Families Are Turning to Term Insurance For Good Reasons. Here’s Why.

Setting a Life Insurance Goal

You May Have Goals For Savings and Investments. What About Life Insurance?

Should You Have Life Insurance? HINT: Ask Your Spouse

Odds Are Your Spouse Would Want You to Have More Life Insurance Coverage