Claims Prevention = Premium Protection

We have seen so many people get burned for making small insurance claims. Insurance is for filing claims, right? Well, you have to understand how insurance works and you have to be wise about it.

When you file a homeowners insurance claim, it will make your premiums increase for five years. In many cases, a hail claim is different. Typically, hail claims don’t have as much of a negative impact on your homeowners insurance premium because if you get a new roof, you will get a “New Roof Discount.”

Example:
Let’s say that you see some water on your floor and there is a little bit of damage. Let’s say that you have a $2,500 deductible and the amount of damage is $3,500. In this sitaution, you would end up receiving $1,000 from the insurance company for this claim.

This claim, where you receive $1,000, is going to make your homeowners insurance premiums increase for five years. Over time, you are going to end up paying more than $1,000 for this claim. This claim will ultimately lose money for you.

Before filing a claim, it is wise to do the following BEFORE you file a claim:
• Get an estimate of the dollar amount of the damage
• Compare the dollar amount of the damage to your deductible
• Consider long-term rate impact of that claim

We recommend that our clients call us before they file a claim so that we can talk them through it. That said, it is your right, if it is your insurance policy, to file a claim anytime you want. We just understand how insurance works and we want to give you as much guidance as possible.

We are here for you anytime you need us!