When Is It Worth It to File a Property Insurance Claim?
As your local insurance professional and property owner, I know how stressful property damage can be whether it’s a burst pipe, hail damage, or a broken window. One of the most common questions I hear from clients is:
“Should I file an insurance claim, or just pay for the repairs myself?”
The answer isn’t always simple, but making the right choice can protect you not only financially in the short term, but also in the long run. Here’s what you should know.
- Insurance Is Meant for Major Losses
Property insurance is there to protect you from significant financial hardship. Large, unexpected events like a house fire, hailstorm damage, major water damage, or large theft are exactly the types of situations insurance is designed to cover. These kinds of losses can be expensive, and filing a claim can help you recover without draining your savings.
If you experience a catastrophic event that would be difficult or impossible to pay for out of pocket, filing a claim makes sense. That’s why you have insurance.
- Why You Should Be Cautious with Small Claims
While it might be tempting to file a claim for every issue, such as minor roof repairs or small water leaks, it’s important to consider the long-term impact. Insurance companies track how many claims you file, and a history of frequent claims can affect your future insurability.
Here’s how it could affect you:
- Higher Premiums: Multiple claims can raise your rates—sometimes significantly.
- Non-Renewals: In some cases, your policy may not be renewed.
- Limited Options: Other carriers may view you as high-risk, limiting your choices or leading to higher quotes.
It’s also important to factor in your deductible. If your deductible is $2,500 and the repair costs $3,000, you’ll only receive $500 from your insurer and risk future premium increases. In many cases, it may be more cost effective to handle smaller repairs out-of-pocket.
- Things to Consider Before Filing
Before deciding to file a claim, ask yourself:
- What is the total estimated cost of the damage?
- What is my deductible?
- Have I filed other claims in the past few years?
- Will this affect my future rates or eligibility?
If you’re unsure how a claim might impact your policy or premiums, I’m here to help. I can guide you through the process, help you understand your coverage, and give you honest advice on whether it’s worth filing a claim.
- Let’s Talk First
Insurance is a powerful tool for protecting your home and financial well-being, but it should be used wisely.
When you’re unsure whether to file a claim, please reach out. I’m here to help you weigh the pros and cons so you can make a confident, informed decision.
While insurance is designed to support you during major losses, filing too many claims, especially for minor issues, can work against you.
Many insurance carriers are tightening their guidelines and becoming more selective about the risks they’re willing to take. A pattern of multiple claims, even for small incidents, can make it harder to maintain or secure coverage at a competitive rate.
My goal is to help you stay protected today and remain in the best possible position for future coverage options.
Have questions or need a policy review? Let’s connect!