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Should You File A Home Insurance Claim?
12 Mar, 2018
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Should You File A Home Insurance Claim?

When a home disaster strikes, it can be a cause for panic. Whether it’s your roof leaking, your sewage backs up, or a fire occurs, your poor home has taken a beating. Time to file an insurance claim, right?

You may want to think twice. Not all insurance policies are created equal. Sometimes it makes more sense to pay out of pocket rather than filing a claim, but why is this. Here are a few things that you should think about before making a home insurance claim.

Think About the Consequences

There are many instances in which filing a claim is the right thing to do, but filing too many claims can look sketchy to your insurance provider. Insurance is intended to cover a disaster, and not minor inconveniences.  File too many claims too often, and your insurer could raise your rates or refuse to provide you with insurance altogether.

Unfortunately, in today’s day and age, there are those looking to work companies over for an easy payoff. This puts insurance companies on the defensive to prevent fraud, scrutinizing those who file claims a little too often.

If you file claims only when necessary, you have little to worry about. Just know that filing multiple claims could lead to increased insurance rates in the future. Weigh the pros and cons of a payout versus higher premiums over time.

Can You Afford to Pay Out of Pocket?

A general rule of thumb is that if the house repair damages are equal to your deductible plus one thousand dollars, you should pay out of pocket. The increased premiums you’ll have to pay as a result of filing a claim will lead to even greater spending in the long run.

Insurance companies take time to process and investigate new claims which can result in payout settlements being issued several weeks later. If you pay out of pocket for smaller issues, you will bypass this lengthy process and get back to living life normally sooner.

Are Your Records in Order?

The better records you keep, the easier it is to file a claim. Take photos, write down the scope of the damage, and keep a log of any progression in damage. Try and keep things in check as much as possible, to prevent a small amount of damage from spiralling into a massive issue.

Diligent record keeping expedites the process of filing a claim and shows your seriousness about the situation. It also keeps you organized and will keep an exact recount of events. Without records, it can be a stressful process to get your insurance company to assess damage and acknowledge your dues.

Filing a home insurance claim is hopefully something you don’t have to do often, if ever. The decision to file is a serious one and carries with it consequences that you should be mindful of. Sometimes it’s better not to file a claim if the cost of damage is not much more than your deductible, or if you’ve filed several claims in the past and are worried about being denied coverage in the future.

For more information about home insurance, call WB White Insurance at 877-420-4572 or contact us here.

Amanda May

Amanda began her insurance career in 2000. As a Chartered Insurance Professional (C.I.P.), Amanda is passionate about continued education for insurance professionals. Amanda teaches the Insurance Broker Licensing program through Durham College, and speaks about insurance related topics at B2B events.

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Oshawa Office 110 King Street East
Oshawa, Ontario, L1H 1B6

Lindsay Virtual Office