What Claims Are Worth Making?
When you consider your homeowners insurance policy, you can think of it much like you would catastrophic medical insurance. You need both of these things, but you’d rather not ever have to use them.
Everyone knows that their car insurance payments will go up if they make a claim, and the same will happen if you make a claim on your homeowners insurance. Therefore, you should think carefully before filing a claim. If your basement floods and much of your property’s lower level is destroyed, a claim might not be a bad idea. If you have a small leak that damages some of your hardwood flooring, though, you may want to pay for this repair out of pocket.
Not only can filing a claim raise your premium, but it could also eventually result in your insurance company dropping your coverage altogether. If this were to happen, you’d have to take on state-supported homeowners insurance, which is three times more expensive on average.
So, in short, think long and hard about which claims are worth making.
If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.