3 Things to Know Before Filing an Insurance Claim

5/30/2022 (Permalink)

Before Filing An Insurance Claim, There Are Three Things You Should Know.

In the event of a home flood, you may believe that the first thing you should do is file a claim with your insurance company. But, at the same time, you worry that filing an insurance claim could raise your premium. If you find yourself in this dilemma, consider how insurance companies operate to help you decide.

1. Consider the Circumstances

Insurance companies react to claims depending on how many you have filed and who or what caused the damage. For instance, insurance companies may raise your rates if you live in a flood zone, but they may not if significant floods are rare in your neighborhood. When you need home repairs after a flood in St Anthony MN, consider hiring water restoration professionals.

2. Understand Your Insurance

Unfortunately, insurance companies do not like water damage. This type of damage is expensive to repair, requiring a significant payout to replace your property and eradicate mold. Even though your insurance policy exists to help you in your time of need, insurance companies try to avoid risk and do not cover any more costs than they have to.

3. Think About Filing an Insurance Claim

Given how insurance companies operate, you may wonder if it is wise to file a claim when a flood damages your home. The smart solution may be to pay for minor damage yourself and save your insurance coverage for a more serious situation. Remember, you have paid your insurance premium, so your insurance company should cover damages according to your policy. But when you file a claim, you may need to prepare for your insurance company to raise your rates or even refuse to renew your policy.

While you decide whether to file an insurance claim, consider your relationship with your insurance company. Any consequences they impose may be worthwhile depending on the extent of the damage.