Homeowner’s Insurance: When NOT to File a Claim

In some cases, filing a claim against your homeowner’s insurance is just not worth it. In addition to getting socked with higher premiums, you could find it harder to get coverage later.

The big question is, when should make an insurance claim, and when is best not to?

Unfortunately, there is no cut and dry simple answer to that question, as individual circumstances vary.  Things such as; how long have you had your home insured without a claim?  How many claims have you had?  What (specifically) were the claims for?

Different answers to those questions present a different answer as to whether you are better off filing a claim, or handling the situation yourself and NOT filing the claim.

Insurers increasingly are using a huge industry database, called the Comprehensive Loss Underwriting Exchange, or CLUE, to drop or deny coverage based on a home’s history of claims or damage reports. Insurance companies are terrified of rising losses from water and mold damage. So a single report of water-related problems may be enough for insurers to shun your home.

So far, insurers’ increased use of the CLUE database has not caused any serious problems those looking to sell.

Think twice about those water-related claims. This is especially true if you plan to sell within a few years. You might be better off paying to repair the problem yourself rather having your home be branded as high risk.

There are more tips for when to file and when not to online, so our advice is, do your homework.