When NOT to Submit a Home Insurance Claim

October 30, 2017

If your home has been damaged in any sort of incident, whether from a fire, a raging thunderstorm or even a theft, having an up-to-date homeowners insurance policy provides the financial peace of mind you need. After you’ve chosen the policy that will meet your specific requirements, home repairs, lost or damaged belongings or personal injury will be covered for a variety of events.

However, because submitting a claim isn’t something you do on a daily basis, it might be confusing to know exactly what events are covered, as well as when you should submit a claim in the first place. And, some types of claims can increase your premiums, so it’s important to know when it’s time to pick up the phone and call your insurance agent.

Should You File a Home Insurance Claim?

Here are some of the reasons why you should hold off on submitting a claim to your insurance company:

  • You recently submitted a claim. Studies show that the typical homeowner submits a claim once every ten years. While it’s not unheard of to submit two claims within a ten year period, too many submissions over a span of time could increase your rates. Or, if you’ve submitted several claims in just a few years, you might even find it difficult to get a new policy if and when the time comes, as there will be a red flag of sorts next to your name.
  • Your claim is related to a home maintenance task you put off. If several years ago you noticed certain areas of your roof rotting, neglected to make the proper repairs right away, and then a severe thunderstorm caused even more damage and you had to submit a claim, your insurance company will take note of it. Plus, claims do get denied for neglect and long-term wear and tear. Remember, a well-maintained home will be cheaper to cover in the long run, so don’t put off addressing these types of regular home maintenance issues.
  • The claim is smaller than your deductible. If the pay out on the claim is not much more than your deductible, it’s not worth it to submit a claim. Likewise, if the damage is a few hundred dollars above the deductible, it makes more sense to pay for it out of pocket. Why? This goes back to our first point about having too many claims in a short amount of time. If you’re using your insurance, you want to make sure you’re using it when you need it most.
  • You don’t have the right policy for your claim. It’s important to know exactly what type of coverage you have before you go through the submission process. Remember, incidents like floods and earthquakes generally require a separate policy for added protection. Even if you file a claim with your insurance company for something that isn’t covered, the claim itself will remain on your record.

Every home is unique, and it’s important to ensure you’re getting the best price and value on your homeowners insurance. If you have any questions about protecting your home with an updated policy, contact Machor Sage today! Or, request a quote online today.