Should You File a Home Insurance Claim
There are inherent challenges to owning a home, and ensuring everything in the house is in excellent condition is one of them. These challenges often include dealing with the complexities of homeowners insurance. Fascinatingly, homeowners insurance presents a paradox; we pay for it to cushion us from financial ruin, yet it's also capable of inducing financial stress.
When a disaster strikes, and a claim is filed, annual premiums are likely to rise significantly. Worse, an abundance of claims, no matter how legitimate, can risk coverage cancellation. It's an intricate balancing act, a calculation that requires careful deliberation every time there's damage to your property or an accident on it.
Every homeowner must consider whether it's financially viable to file a claim or absorb the losses independently. A single mistaken judgement could teeter the scales, causing a significant impact on your homeowners insurance and your bank account.
Homeowners insurance policies usually require you to report any damage to your property promptly, typically within two weeks but possibly up to 30 days. Rushing to file a claim may favor the insurer but not necessarily be beneficial for you.
Going through your policy carefully and getting repair estimates to ensure the cost to fix the problem outweighs your deductible— the amount you pay out of your pocket—is crucial. Additionally, it's paramount to file a claim, irrespective of the deductible, whenever someone is injured on your property to cover potential personal injury claims.
However, there are circumstances when it's worth thinking twice about filing claims. Consider skipping water damage claims under $10,000 due to the potential risk of policy cancellation over mold concerns. Non-water damage claims under $3,000 are also worth omitting to avoid skyrocketing premiums.
Remember, every claim gets recorded in the Comprehensive Loss Underwriting Exchange (CLUE) database that is used by nearly all insurers. If you switch insurers, your previous claims linger in CLUE for seven years, and multiple claims risk non-renewal of your policy.
If you find yourself short on finances to cover damages, consider a short-term loan from your bank or credit union. The resulting interest will likely be less than the increased annual premiums insurance companies charge.
Lastly, in circumstances where insurers deny claim coverage, they're bound by law to share a copy of your policy specifying their reasons. If you feel your insurer is misinterpreting the policy, make your case with the adjuster and then the agent. An attorney's guidance might be required if the extent of the loss demands a legal fight.
Homeownership can be fulfilling, but it's seldom smooth-sailing. Ensuring your house is adequately insured is one way of securing peace of mind amidst these challenges. At Venture Reality Group, LLC, serving as your Realtor, I'd love to navigate you through the ups and downs of the real estate world. Partner with me today to make the homeownership journey a smoother ride!
Please feel free to reach out to me at 501.231.7775(call), 501.259.8437(office), or email me at Angelakbreality@gmail.com. I am more than excited to be part of the process of selling or buying your next home!
-Angela Benight, Realtor at Venture Realty Group, LLC