How Many Claims Can I File Each Year?

When you purchase a home you are going to be making a huge investment that is going to require a lot of research and preparation. With mortgages, taxes and home improvement investments, your home will most likely end up being one of the largest investments that you will ever make. Such a large financial commitment deserves the proper amount of protection, and that is where homeowners insurance comes in. When you have a homeowners insurance plan, your residence will be protected from fires, storms and other hazards that can potentially cause some fairly large damages.

Understanding Homeowners Insurance Rates

When you purchase a homeowners insurance policy, there are a few things that you will want to understand. First, it is important that customer recognize that some of their actions are going to determine the price of their policy. For example, if you have a poor credit score, you are going to have a much more difficult time finding the kinds of cheap rates that you want. Personal characteristics are also going to affect your premiums, and certain individuals will have traits that allow them more affordable protection. One of the most important factors that is going to affect your homeowners insurance price is your previous claims history.

Insurers are going to be searching for the individuals that are not likely to use their policies, and they will use a number of different criteria in order to locate these individuals. But one of the main things that they will consider are previous claims. If you have submitted claims in the past, insurers are going to be much more hesitant to give you their cheapest prices, and some will not even offer you homeowners insurance protection at all. Therefore, homeowners should be very selective about when they file claims.

When to Use Your Policy

If you file too many claims per year, you may find that your insurer will drop you from their coverage. Customers that file two or three claims per year are likely to run into this kind of problem. Homeowners insurance providers are going to see these people as individuals that are using their coverage as a way to keep up their home, and this is a practice that will cost them money. To avoid being dropped by your homeowners insurance provider, you will want to keep claims down as much as you possibly can.

Some policyholders may be wondering when it is best to submit claims on their homeowners insurance policy, and the answer to that question is fairly simple. You will only want to use your coverage when you cannot afford to pay for damages out of pocket, or when the cost is more than double what you will be paying for your deductible. It is important to remember that whenever you submit claims to your homeowners insurance provider, your rates are likely going to go up. If you want to discourage yourself from using your plan too often, consider getting a higher deductible, as this will also cause your monthly premiums to go down.

It is important that you understand your renters insurance protection before filing numerous claims, and that you recognize that overuse of your policy is going to result in some problems that could have been avoided. It is a good idea to see your plan as a safeguard against catastrophe, and to try and use your own money for any other expenses or problems. With this kind of mindset, you should be able to maintain an affordable policy for years, and you can avoid spending too much on homeowners insurance.

safe secure

Enter your zip code for affordable home owners insurance quotes

GET QUOTES

What People Are Saying

"When a hail storm hit our town and destroyed all my windows, I was glad that I had found this site and was able to get a great rate on homeowners insurance. I've been able to make home improvements with the money I keep saving every month."

- Rita E, Atlanta GA