When to Avoid Filing an Insurance Claim

Say youโ€™ve been paying home insurance since you moved in 5 years ago. The average homeownerโ€™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 itโ€™s worth more to pay for the damages out of pocket. This is because the average homeownerโ€™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 homeownerโ€™s premium. Itโ€™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.

ย By: KayLynn


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