Making a Homeowners Claim May Raise Your Rate - To Claim or Not to Claim

Knowing when not to make a claim can save you hundreds on your homeowner's coverage. The general rule of thumb when filing a claim is to recognize that your homeowner's premiums will increase as a result of that claim.

June 12, 2008

Homeowner's insurance is designed to protect the homeowner, financially, against natural disasters, theft, fires, liability and other damage. In most cases, homeowner's claims are rarely filed. The general rule of thumb when filing a claim is to recognize that your homeowner's premiums will increase as a result of that claim; so if you can afford to fix that broken window or replace the broken step without having to file a claim, you may be better off.

For those cases when it's imperative to file a claim, it's important to know what to expect. The claims process can be confusing — and even a little tricky.

Notify your homeowner's insurance company immediately. This helps the company start the process necessary to handle your claim. Be sure to document the name and contact information for all the individuals you speak with when filing your claim.
If emergency repairs are necessary, and cannot wait for a claims adjustor or inspector, ask your insurance company for a list of companies authorized to make emergency repairs to your property. In some cases, the company doing the repairs can bill the homeowner's insurance company directly. Be sure to get the necessary paperwork from the insurance company for this type of repair.
Keep track of all the contact you have with the insurance company in as much detail as possible. Get names and contact information from everyone you speak to about your claim, record your claim number and any related information. Any documentation of conversations with your home insurance company may come in handy if there is a dispute later.
Document the damage done to your property. Take photos (and videos if possible) and be sure to write down everything that happened so you can present this information to the insurance company. If at all possible, have any items that can demonstrate the value of the damaged property available, especially receipts. If applicable, have any related witness accounts, police reports and reports from the fire department.
When the home insurance claims adjuster is inspecting your property, make every effort to be present. This will enable you to point out damage the adjuster may have missed and take notes regarding the adjuster's comments and actions.
Do not agree to your insurance company's final settlement until you are satisfied that settlement is fair. Get a second or third opinion from a licensed, local contractor, if necessary. If you think your insurance company is trying to take advantage of you, contact your state department of insurance.