Insuring a Home with Multiple Claims

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Insuring a Home with Multiple Claims

Your homeowners insurance is there to protect you, but what if you file too many claims?

Homeowners insurance is designed to protect your home when the worst happens. While this is the case, if you take advantage of it too many times and file too many claims, your home insurance could drop you from coverage. In turn, your home and finances would be rendered vulnerable and tainted for other companies. Filing multiple claims can make you, potentially, as a high-risk customer and that can result in higher premiums or canceled coverage.

If you do file one claim too many, the insurance company is required by law to notify you at least 20 days in advance of cancellation. You can ask for a written statement explaining why, and that will clarify how many claims you filed. As always, there is no one special number of claims that homeowners file before being dropped. More often than not, homeowners file claims that are not of huge financial worth, which hurts their policy in the long run.

When should you file a claim?

  • Never file a claim that is bigger than your deductible, mainly because it may not be covered. This also puts the claim on your insurance record and it will stay there for at least three years.
  • Make sure you’re covered for the claim. Many homeowners mistakenly believe that they are covered for a certain event, such as flooding, but find that they need a separate policy for flood coverage only after disaster strikes.
  • Be aware of when you last filed a claim. If you’re a consistent claimant, you are likely to experience a spike in premiums. It isn’t unusual for a homeowner to file up to two claims in a 10-year period, but more than one of two in a three-year span would sound alarm bells to insurers.
  • Don’t submit claims that are really home maintenance projects. If the fence is rotting away and you know that one big windstorm will blow it down, budget the household finances for a new fence first. Remember that better-maintained homes get better premiums, too!

To find out how you can make the most of your homeowners insurance and maintain affordable rates, contact the professionals at Grand Oak Insurance Agency. Our experts are here to ensure your home, finances, and belongings stay well protected. Visit us today in Arcadia to get started!

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