October 23rd, 2014
Under a standard home insurance policy, there are many things that are covered relating to your home. However, some things might better be left off an insurance claim. Large damages resulting from house fires or home invasions should be addressed and handled accordingly with your insurance provider. Many homeowners don't experience such extreme risks very frequently, however. Instead, a typical owner is much more likely to have to replace a fence or fix a broken pipe. But while these may be covered under your policy, it may not be best to file a claim. If it's possible, certain issues should be handled on your own. Here's why:
Every time you file a claim, your monthly rates are likely to increase. Even if it is a relatively inexpensive claim that can be handled easily, a rate hike might still be in order. This is because you are essentially announcing to your provider that your home is not in the best condition and that there are likely more problems that will come up in the future. Insurance companies reward customers who make the fewest claims because they are cheaper to insure and more reliable.
Your premiums will rise because you are now considered a larger risk than you were previously. In an ideal world, homeowners would have zero claims and would properly maintain their homes at all times. However, because many homes suffer from a variety of problems, insurers have to be able to cover a large array of possible damage costs. Every claim you file could be a potential red flag for your provider.
Don't expect to get all of your repair or renovation expenses paid for without having an accompanying uptick in your rates. Insurance companies are not likely to pay out money without having some kind of return on their investment.