You came home from work to find your floor covered in water. What now? Your first thought may be to call the insurance company to get someone to come out to look at the damage, but knowing when to make a homeowners insurance claim and when to fix the damage yourself could save you money—right now and in the coming years.
Make your decision financially motivated, not emotionally.
It can be easy to call your insurance provider out of stress or frustration towards the incident, but it's extremely important to sit back and think about what would be the best decision for you financially.
Without knowing the extent of the damage, it’s hard to estimate how much the repairs will cost to determine whether or not you should file a claim and pay the deductible or pay out of pocket.
The best thing you can do is to have a reputable plumber and possibly a restoration company come to your home and take a look at the damage. They will be able to tell you the extent of the damage and how much it will cost to fix it.
Your policy is not for maintenance.
Is your roof leaking because you should have had some shingles replaced a while back? Don’t attempt to file a claim that was caused due to a lack of routine maintenance because even if your claim is denied, your insurance rates may go up. Things like that are just a part of the responsibilities that come with being a homeowner.
Don't waste a claim on something small
Think about your homeowners insurance policy as a backup in case your home sustains catastrophic damage, like in a fire. If the repairs are going to cost you $3000 and your deductible is $1000, it may seem like the right idea to make the claim and pay the deductible. But if you are able, you should really try to pay for the repairs out of pocket. That’s why it’s so important to have an emergency fund set up.
After every claim your premium will go up.
After any claim, your premium will increase 20-30%. When you think you are saving $500 by filing a claim you are actually spending more than $500 when you include the price increase of your premium over the next few years.
It may be frustrating that it isn’t advisable to file a homeowners insurance claim every time your home sustains damage, but just remember that your homeowners insurance is there for major damage. And the money you pay each month for that peace of mind is totally worth it.
If you have any questions about whether or not you should file a claim or if you need a quote on a homeowners policy give us a call and we will find the best policy for your individual needs.
AZ Insurance Team 480-535-5709 https://www.azinsuranceteam.com
*All policies are a little different and this may not be applicable to your insurance policy, talk to your agent to see what your policy covers.