Most homeowners try their best to avoid filing a claim, but there are many circumstances where they may not know whether they should. In some cases, you practically have to file a claim in order to make repairs to your home. In other areas, however, you may not have to file a claim.
The Damages are Below your Deductible
Your home insurance deductible is how much you pay out of pocket after filing a claim. If you have to file a claim, you must pay your deductible before receiving compensation. However, you may not be able to file a claim if you do not reach your deductible.
For example, say a storm causes $450 in damage to your home. Your deductible is $500. Since you can’t reach the $500 deductible of your home insurance policy, you will want to pay for the repairs out of pocket.
This is why it is important to always have the damage to your home evaluated by a professional after an accident, storm or disaster. They can tell you how much the repairs will cost which you can use to decide whether it would be cheaper to file a claim or pay for the damages out of pocket.
The Damages are Not Covered
Unfortunately, not all home insurance policies are created equal. There are different coverages and limits available for home insurance and having lower limits or less coverage means that some accidents may not be covered.
If the damages aren’t covered, you won’t be able to file a claim and receive compensation. It is important to know what your policy does and doesn’t cover so that you are not blindsided by an accident not being covered.
Keep in mind that insurance providers don’t necessarily want you to file a claim, as a settled claim costs them money. Notify your insurer any time an accident occurs even if you don’t plan on filing a claim. Failing to let your insurance agent know about an accident can affect your ability to receive compensation if you want to file a claim later on.
Filing a claim can raise your insurance rates, but it is not the end of the world. Speak with your insurance agent to see if they can help you save money or if you qualify for discounts to lower your monthly home insurance premiums.