When NOT To File A Homeowners Insurance Claim


Sometimes it’s better to pay for damages to your home than to file a claim and risk increased premiums—or a canceled policy. Find out when you should not file a claim.

You’re being tracked. Not in some creepy, stalker kind of way, but every time you file a claim against your homeowners insurance policy, you’re entered into a nationwide database called CLUE (Comprehensive Loss Underwriting Exchange).

File too many claims and your insurance company could cancel your policy—or at the very least, raise your rates. And, because CLUE is a nationwide database used by nearly all insurers, you may have trouble securing a policy with a new company.

If you need to make a claim and your policy covers the loss, then by all means make use of that policy you’ve been paying for. But there are some instances where you may be better off not filing a claim.

You’ve already filed a claim within the last three years.

Generally, if you file more than two claims in three years, your insurance company is going to get jittery. If you recently filed a claim, you may want to think twice before filing again.

The damage is less than three times your deductible.

Insurance is meant to help you pay for high-cost damages, not help you keep up with home maintenance—which is how many insurance companies will view multiple small claims. Sometimes it’s better to use your emergency funds to repair damages than to have your premiums increase to the point where you’re not only paying the amount you would have paid to repair the damages, but more.

The issue does not involve injury.

If someone was injured on your property—say they slipped on your steps or were bitten by your dog—then you should definitely file a claim.

The damage involves moisture.

Water and mold are your enemies. Not only can they cause serious damage to your home, but they can also wreak havoc on your homeowners insurance policy. If the issues are serious and could cause you significant financial hardship, then you should make a claim. Be aware, though, that you could find yourself with a cancelled policy and have difficulty securing another.

You haven’t maintained your home.

Your home is a major investment and needs to be maintained regularly. If the damage to your home is a result of neglect, your insurance claim likely will be denied anyway. So why go through the bother of filing and having your claim entered into CLUE for all eternity? If you can, repair the damages yourself—before they get any worse.

Insurance companies do cut you some slack when it comes to damage resulting from weather-related issues. In most instances, you can file a claim without worrying about your premiums increasing.

Related Articles

Source: CBS Money Watch, HouseLogic.com, MSN Money, Insure.com
Search All Articles
Related Articles
Are You Prepared for a Blizzard?
Blizzard2017 saw some of the most extreme weather in years
5 Things To Do in a House Fire
FireAs soon as you hear a smoke detector go off, smell smoke, or see fire, get out as soon as possible.
How to Prevent House Fires
05fire-jumboThere are several things you can do to prepare and prevent disaster from striking your home.
5 Things to do if your House is Still on the Market
House-for-saleThere is a wide array of reasons why your house might not have sold yet, not all of which are in your control.

Most Popular
Know Before You Go: What Travel Insurance Covers
Travel2Find out what kind of coverage youll receive if you purchase travel insurance, and where to go for more information.
What Is Phishing?
EmailthumbDon't reply to email or pop-up messages that ask for personal or financial information.
Your 401(K) And Target-Date Funds
TargetLearn more about target date funds to determine if they should be part of your 401k
Rolling Oaks - The Online Neighborhood Success Story
RollingoaksthumbROHOA provides a unified voice representing the interests of Rolling Oaks residents in their community.


Zip Code Profiler

Neighborhoods, Home Values, Schools, City & State Data, Sex Offender Lists, more.

Instant Home Value!