In an ideal world, you should be able to file an insurance claim every time an insured event occurs. However, there have been many times when homeowners end up with a canceled home insurance coverage due to a number of reasons. We’ve talked with several public adjusters in Miami and they explained that there have been many policyholders who have filed more than a single claim every 10 years and this can lead to some problems.
The main issue here is that many policyholders expect to get paid for covered claims each year they pay for insurance. But underwriters prefer to keep those who have the fewest number of claims.
To File or Not to File
To help you determine whether you should or should not file a claim, take a look at the following:
1. Don’t claim the small stuff. That means if the cost of repairs will only be a few hundred dollars, then you should just pay for it out of pocket. Save claims for bigger insurance events to lower your risk of getting rejected.
2. Choose the highest deductible amount you can have. Home insurance experts recommend that you take no less than $5,000 as your deductible. Anything lower than that will put you on the losing end. We would advise everyone to call their insurance agent and find out what is the maximum deductible they can get. You need to proactively prevent minor losses from occurring since you’ll cover them if they do occur.
Effect on Your Insurance Premiums
If you file a claim, one of two things can happen. You may have to pay twice as much for your insurance premiums after you’ve filed a claim. The government has already approved rate filings that will enable an insurance provider to surcharge policyholders for filing claims. This may not be a bad thing actually, because at least, you’d still be allowed to renew your insurance.
The other thing that could happen is that the insurance company will cancel your coverage because you filed a claim. When this happens, you’ll have to find another insurance provider who is willing to offer you insurance. Most of them will likely turn you down due to your claims history.
When to File an Insurance Claim
Experts recommend that you should only file a claim once every ten years. Don’t keep filing every year or so, especially if these are just minor insurance events. You don’t want to risk losing your insurance coverage and you don’t want to pay sky-high premiums because of it.
Should your particular situation warrant filing an insurance claim, make sure to have all the documents and information ready so that you’ll be awarded fair and satisfactory settlement. You can hire your own insurance adjuster to negotiate in your behalf to ensure that you are getting exactly what you deserve.
Hopefully, this short guide has helped you understand when you should file a claim, and when it’s better to just pay for the repairs out of pocket.