December 16th, 2016 | Homeowner's Insurance
You buy homeowners insurance hoping you’ll never need to use it. Then something happens. It’s a small loss, maybe a tree branch damages the rain gutter, maybe the neighbor’s kid breaks a window or a few shingles that need replace due to a wind storm.
You think of filing a claim. After all, that’s why you’ve paid the premiums all these years. But filing has consequences you should consider.
A general rule is don’t file a small claim as it may increase future insurance premiums. If it will only cost you several hundred dollars out of pocket, it’s probably better to pay for the repair yourself instead of filing a formal claim with your insurance company.
The average rate hike for a family filing a homeowner’s claim is about 9 percent, or $150 a year, so a small claim can in the long run not be a wise choice.