When Should You File a Homeowners Claim?

Homeowners insurance can be a vital shield for your financial interests, including one of your most valuable assets, your home. However, while these policies can provide financial relief following accidents and other covered incidents, it’s still necessary to understand when you may or may not want to file a claim.

Key Considerations Regarding Claims

There are various factors to consider during the aftermath of an incident involving your family or home. While the details of a situation should still be analyzed, the following circumstances may often necessitate filing a claim against your homeowners insurance:

• Severe damage—If your home suffers significant damage due to events like storms, fires or vandalism, resulting losses may necessitate a claim, potentially ensuring you can repair or rebuild as needed.
• Theft or burglary—In the unfortunate event of theft of personal property within your home, filing a claim can help you recover the value of the stolen items and any damage the perpetrators may have inflicted on your residence.
• Liability claims—Homeowners insurance can also often lend financial aid if you or another insured are at fault for someone else’s losses. This could lead to significant costs and lawsuits, potentially necessitating assistance from your policy.
• Temporary relocation—Certain covered incidents, such as fires and natural disasters, may render your home temporarily uninhabitable. In this case, you may need to file a claim with your insurance company to recoup the resulting expenses, such as for hotel accommodations.

It’s important to consider the potential impact that filing a claim may have on your premiums and coverage. Filing too many claims within a short amount of time can lead to higher rates in the future or may even lead to your carrier declining to renew your policy altogether. You should be particularly mindful of the pros and cons of filing a claim for minor damage and losses, as it may generally be advisable to handle expenses that do not exceed your deductible out of pocket.

Learn More

Contact Legacy Insurance today to learn more.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.