The average homeowner's insurance premium is $952 per year, a significant amount that protects you from various types of damage to your home. As with other insurance types, however, you need to be wary about filing too many claims. Your insurance company will stand behind you in most instances, but you risk higher premiums and loss of coverage if you "over-claim."
Amount of Damage
Of course, you should never file a claim that is less than or equal to your yearly deductible. All that will accomplish is establishing a claim on your property with no financial benefit for you. In fact, some experts suggest that you do not file a claim for any amount that is up to double your deductible. If the repairs on your house fall into this category, you should just pay for the work yourself. Depending on your insurance company, even one claim can raise your premium although some companies do allow one claim without raising your rates. Even if the claim does not up your rates, it's worth keeping small claims off your record.
In addition to filing claims for higher damage amounts, you should also file a claim anytime someone is injured on your property, even if the initial amount is quite small. In those instances, you will be protecting yourself from future lawsuits. If a workman is injured while shingling your roof, the early medical expenses may not be high, but long-term injuries may result. You will be more vulnerable to a lawsuit if you have not filed a claim.
Sometimes, you are just unlucky and end up having several claims over a period of time. If you do file several claims every decade, that is not considered a red flag. However, if you file several claims in a three-year-period, that could work against you and make it difficult to maintain coverage. Too many claims signal that your home may not be well-maintained or that you live in a high-risk area, factors that an insurance company must consider to remain profitable.
When you experience significant damage to your home that is covered under your policy, you have every right to file a claim and expect payment from your insurance company. You do need to be wise and restrict your claims according to type and severity. No insurance company can afford to cover a home that generates constant claims, so be prudent about when you file. For more information, contact a company like Paris V Mastroddi, Inc.