Your home is much more than a place to hang your hat. In fact, it’s also a great place for storing your snacks, collecting couches and protecting your private photos. If anything bad were to happen, you could be left without any of that stuff, and more. But hey, that’s why you bought homeowners insurance in the first place.
In the event of damage, destruction or burglary, you’ll have to decide whether to file a claim. No worries though, with help from the following guide, we’ll make sure the claim filing process goes smoothly.
Whether some neighborhood punks stole all your belongings or shady weather left your home with some serious damage, here’s what to do when something bad happens to your home.
According to the ISO, 5.2% of insured homes had claims in 2016. Of those claims, 97% related to property damage.
Filing a claim can trigger an unwanted premium increase. So you’ll want to be smart about deciding whether to file.
If there is significant damage to your home where the cost to repair or replace will drastically outweigh your deductible, you always want to file a claim.
Here’ are a few situations where you would not want to file a claim:
If your entire house burned down unexpectedly, chances are you wouldn’t remember every item of value inside. Being organized and having purchase records and receipts can help make the claim process much easier. There are a few simple things you can do to be prepared:
If a hailstorm wipes out half your roof, you won’t be able to stay in your home during the claim process. If you’re displaced during your claim, be sure to keep track of your extra living expenses. This can include the following costs:
Most insurers cover extra living expenses, so be sure to keep track of any financial burden that comes with leaving your house temporarily.
Not everything is covered in your basic homeowners policy. In fact, the following will not be covered in a standard insurance policy:
If you live in an area where any of these situations is a potential threat, you can always add the proper coverage to your insurance. Just talk to your agent and they’ll handle it.
In the long run, understanding your insurance policy, having a list that shows the value of your belongings, and working with your insurance agent can help make for a smooth claim process.