Is It a Good Idea to File a Home Insurance Claim?

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when to use your home insurance

As a responsible homeowner who is carrying the right homeowners insurance, you may not think twice about filing a homeowners insurance claim whenever an issue arises. However, there are some cases in which it does not pay to file a claim.

Here’s what you need to know about the effects of filing a home insurance claim and when you should avoid doing so.

  • Premium Increases

Every time you file a homeowners insurance claim, your premiums can increase.  The type of claim filed will affect how much your premiums increase. A personal liability claim could result in premium increases as high as 14%.  A claim for wind and hail damage might only amount to an increase of 6%.

  • Small Issues

If you experience a small issue with your home, such as a broken window or a minimal amount of water damage caused by a leaky pipe, it may not be worth it to file an insurance claim. Filing a claim could mean paying a considerable amount of money in the long run. In the case of minor issues, it’s often more cost effective to pay for the repairs out-of-pocket.

Homeowners also need to remember that filing multiple claims in a short period of time could result in the cancellation of their policies. So, filing claims for minor issues could actually result in you losing your coverage completely.

  • Use Your Insurance for Big Things

Your homeowners insurance is best used for major issues and catastrophic events. For instance, personal liability issues and major damages, such as the ones caused by a house fire, should always be run through your insurance. A good rule of thumb? If the cost of the damage or claim is higher than the deductibles on your policy, use your insurance coverage.

When it comes down to it, there is no definite answer about when to file a homeowners insurance claim. However, these are some of the things to consider as you make this decision.

Do you have further questions regarding your home coverage? If so, contact the experts at John Scott Insurance. Our dedicated team is ready to assist you with all your coverage needs today.

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