Do you Have Homeowners Insurance? Here’s How to Lower Your Deductible

Written by Josie

The amount of a claim and the payout will ultimately determine the deductible and whether the claim payout is relatively minor or major.

“Minor” means, the cost you want for your insurer to cover are not much more than your deductible. If your claim is relatively small not much more than your deductible, it is not worth filing an insurance claim. If the damage is less than a few hundred dollars above your deductible, it is best to pay it out of pocket to avoid increases.

It is unfair to be penalized for using insurance you pay monthly to protect your home, but because almost all states allow insurers to penalize the clients for filing insurance claims freely, it is up to you to protect yourself. Many states limit the amount an insurer can charge you after a claim but not all.

In all these situations, you are better off paying the damage/repair cost out of your own pocket rather than filing a claim. You should first figure out what the cost is for you to pay any damage or repair to your home. If it will cost, you less than your deductible it is always best to fix the damage yourself. If it is still over your deductible you should still always try to fix it yourself. When the cost of repair is too high to handle yourself, that’s when a claim should be filed.

Filing a home insurance claim on any sort of regular basis may provoke a negative reaction from your insurer. Some will tell you filing a weather-related claim and a non-weather-related claim in a short period of time should be fine. Anything above or beyond that, though, your policy may be in a negative state. Others say filing a couple claims of any sort of damage/repair in a short amount of time could peak your insurer’s attention. Insurance companies will generally cancel your insurance if you have more than two claims per years in a three-year window.

Think long and thoroughly before filing an insurance claim for your home directly with your insurer every few years. Of course, always evaluate whether it is a right time or situation to file a claim with your insurer. People who rush to file claims at any time they sustain damage to property, are harming themselves, even if done innocently. Doing so can ruin your claim history and make you an uninsurable homeowner. In the end, you won’t get the desired outcome in most circumstances. You can also always find the help of public adjusters who specialize in home insurance claims.

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