FMOOD 0278: When You Should (And Shouldn't) File a Homeowner's Insurance Claim

Knowing when you should (and shouldn't) file a homeowner's insurance claim can save you from difficulties down the road. There are several scenarios and other considerations to keep in mind in order to avoid higher insurance rates, or in some extreme cases, getting dropped by your insurance provider altogether.

 

I think that most folks find that it's generally unfair that you have to take pause before you pick up the phone to call your insurance company when you have an accident in the home that should be covered. What we have to keep in mind is that insurance companies are in the business of doing business. In other words, they aren't going to take a loss when they can recover in some other way. Many times, recovering what an insurance company pays out equates to higher premiums for the insured.

 

I'm not an insurance agent. I don't have formal training on all of the intricacies of the insurance industry. However, I have thoroughly researched this subject, and I felt that it was necessary to share with you what I've learned. While there are some no-brainers as far as when it's appropriate to file a homeowner's insurance claim, such as extensive fire damage or other expensive damage, there are some questionable situations that may not be as straightforward.

 

It really comes down to two main things: the cost of the repair and the type of damage. You may need to bring in a professional for an estimate first before you call your insurance company to get a realistic idea of what the damage will cost to repair, but once you have this information, you will need to make a decision one way or the other right away. An insurance company may deny your claim if too much time has passed since the incident occurred that is being reported. Also, there are certain situations where you might want to be careful about what you are putting through as a claim using your homeowner's insurance. I go into this in more detail on this episode.

 

While I cover some general examples, I won't be able to cover each and every situation. You'll need to take some time to decide for yourself what is best for you, and you may need to dig a little deeper into the research topics that I provide here on this episode. The main point is to always consider the situation fully before making any decisions on whether or not to use your homeowner's insurance to recover from a loss other than a major loss when it comes to your home. God bless.