Home Insurance Knowledge Is Power
Updated: Dec 6, 2021
Did you file another claim for the window that got broken during the storm? Although its repair won’t cost you much, still, you decided to file a claim, so you won’t have to pay for anything. After all, that’s what insurance is all about, you say. If you did claim another claim, no matter how small or big it may be, can cause you a huge insurance policy rates upon renewal. All of your claims will be noted in your history causing insurance providers to think that you are at greater risk for filing future claims.
To avoid any unpleasant surprises, policy holders must carefully read the policy and understand its implications. What happens to the policy holder whenever they make a claim? What is its effect on the overall coverage of the insurance? Only an insurance advisor will be able to explain all the specifics of the policy including the consequences of making too many small claims. It is best to talk to them before the purchase of the system or before you file a claim.
If you have home insurance, it is best to understand its major points up front – before any claim is made – to prevent problems later. Here are three insurance facts you must know:
· Small claims can cost higher insurance policies upon renewal. If you are fond of making small claims to your insurance provider, be prepared for the increase in insurance coverage in the coming year. Small claims can make insurance companies feel wary about the significant potential claims you can make. Not only does it pose a risk on their part but it could mean losses too.
· When making a claim, it is important to get a report of what happened. A police report could help justify the claim and the amount needed to fix the problem. Without a report, insurance companies take the time to process the request as they will have to find justification for it.
· The claims that you make will pile up and will be attached to the customer risk profile that insurance companies have. Every small claim that you make could add to the danger that surrounds your policy, making insurance companies think twice about ensuring you again.
And yet beyond all this, it is important to make a claim when necessary. After all, that’s what home insurance is about – making a claim when the need arises.