While inflation, weather events, and supply chain issues are uncontrollable, there is something homeowners can control: when to file an insurance claim.
There are consequences to consider when filing a homeowners insurance claim. Homeowners who file claims usually see subsequent increases in their home insurance premiums.
That’s how insurance companies make their money back. Plus, insurers correlate claims to a high-risk person who may file more claims in the future. Insurance companies will look at a client’s claims history when setting rates.
Filing a claim on a homeowners policy can be both a complicated and costly matter that can be made significantly less expensive if your insurance agent provides advice on how to avoid the worst claim mistakes.
A major mistake is opening a claim with the insurance company before you have a discussion with your agent. Have a conversation before you put in a claim. Most claims can wait for a short discussion with your agent to discuss the pros and cons of opening a claim.
Homeowners should think twice about filing a claim for damage caused by a lack of home maintenance. For example, if your siding has been neglected and is deteriorating, a claim to replace it will probably be denied. However, the claim is still included in the Comprehensive Loss Underwriting Exchange. Think of it as your insurance permanent record. This means it can affect your homeowners insurance premium down the road.