Yet, if you’re not aware of the proper procedure to file a home insurance claim or have not read the rules in fine print detailed in your invoice, your home insurance claim may not go as smoothly as you may have planned.
Underwriters for home insurance providers have been trained to red flag any suspicious claims.
Typically, more than two home insurance claims in a three-year period could result in an interrogation from your home insurance provider that rivals Richard Nixon’s Watergate trial.
Personally, I recommend not making a home insurance claim unless the repair cost exceeds three times the amount of your deductible. Not only will a small claim count against you if you need to make two more insurance claims in the next three years, small claims also lead home insurance providers to believe you’re attempting to use the insurance company to expense your home maintenance fees.
Aside from underwriters, the Comprehensive Loss Underwriting Exchange (CLUE) industry database helps curb home insurance fraud as it receives data to track every insurance claim you make. CLUE also keeps tabs on this information to prevent you from jumping to a different insurance company if your premium increases or gets cancelled all together.
Last month, my fellow Zing blogger Gabriela, offered five important questions you should ask your home insurance provider:
- How much is the deductible?
- What is excluded from this policy?
- Are there any safety features I could install that would help me save money?
- Is replacement cost covered or actual cash value?
- Can you explain the differences between your HO-1 through HO-8 policies?
If you’re in the market to buy a home, there is typically no getting around purchasing home insurance because you can’t close your mortgage loan without insurance.
Now that you know what questions to ask and when not to file a home insurance claim, hopefully your next insurance claim will go as smoothly as your electronic payment to your home insurance provider
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