Homeowners' insurance exists to protect your most valuable asset and investment--your home. Problems arise when homeowners think they should file a claim for every little home repair. There are many reasons why you should not do this, the most important of which is that your insurance premiums could skyrocket with every unnecessary claim you file. Here is some helpful advice on how to avoid abusing your homeowners' insurance and get the most out of your policy when you really do need it.
File a Claim Only for Major Repairs
Homeowners make the mistake of assuming that homeowners' insurance should be tapped for all home repairs. While you certainly could do this, it gets expensive for the insurance company, who will make your monthly premiums more expensive in return. The best practices for having and using your homeowners' insurance is to use it for major repairs only.
Examples of major repairs that qualify for insurance claims include:
- Damage to your roof, including fire, tornado, hail and water damage
- Structural damage that makes your home unlivable
- Flood damage
- Fire damage
- Mold remediation and restoration
- Major repairs to your furnace, plumbing, ventilation, water heater and/or air conditioning systems
Also, it should be noted that you should only file a claim for these repairs if and when they exceed your deductible. If the total amount of the repairs is less than your deductible, the insurance company will not entertain your claim as valid. For example, if your deductible is $1000, then your repairs would have to exceed the thousand dollars the insurance company would expect you to pay prior to cutting you a check for the remaining amount needed to complete the repairs.
Getting the Most out of Your Policy
When you file a claim only when you need it most, your insurance company will be able to give you more back to help you restore your home to the way it was. There is a very big difference between filing a claim for broken windows and filing a claim for a home that is half gone because of a tornado. While the window claim could help you pay for new windows in excess of your deductible, the claim to replace and restore all of your missing house sections is far more valuable a claim. Ergo, the smartest thing you can do with your homeowners' insurance policy is to save it until you absolutely, positively need it. To learn more about how to utilize your coverage, contact a company like Lanham Insurance Agency.