When to Make a Homeowner or Renters Insurance Claim

A homeowners or renters insurance is meant to protect your house or apartment from unexpected damage. But not all that goes wrong should be made a claim because of two primary reasons: your premium will rise dramatically and your policy may be cancelled.

Sometimes you need to absorb the loss within reason. Mainly, insurance firms expect homeowners and renters insurance claims to be filed occasionally. When should you make these claims? Find out below.

1. File it when the amount exceeds your deductible.

If it does not, there is no sense in filing it. Your chances of collecting any benefits is unlikely, and even worse, the insurance company will note that the event occurred. They can use this to increase your premium despite the fact that they did not pay your homeowner or renters insurance claim.

2. It hurts to file too many claims.

Your insurance company expects you to file a claim once every decade. If you file too often, say twice within three years, they are likely to cancel your policy because they see you as an unacceptable risk. To make it worse, your cancelled policy will be known to other companies, who will then be reluctant to give you a replacement policy.

3. Think twice about filing at-fault claims.

If the responsibility for the claim can be traced back to you, the insurance company may not pay your homeowner or renters claim. For example, if your roof is destroyed by a storm but they find that the roof has not been adequately maintained in the first place, they will deny your claim and even cancel your policy. The same is true for water damage because you left the bathtub running for hours and the overflow damaged the house.

4. Do not file claims for exclusions.

It is your responsibility to get to know your policy. It is important to realize that not all threats are included. What is excluded should not be reported. The claim will be disallowed and may be used against you to justify an increase in your premium.

5. Time your insurance claim correctly.

The best way to ensure that you will receive payment is to file a claim when the loss is clearly covered in your policy, the facts are in your favor, and the loss is substantial. Think of your homeowners and renters insurance policy as an emergency tool. If it not catastrophic, do not use it. Cover the small stuff yourself and let the insurance firm handle the truly big disasters that run into the tens of thousands of dollars. Keep this in mind and every homeowner or renters insurance claim you make is sure to be met without you suffering any unwanted effects.

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MJ Usner