Should I File An Insurance Claim

The weather has been crazy lately, hasn’t it? In just the past couple of weeks we have had a confirmed tornado in Cobb County, really low temperatures, and now a wintry mix on the way. Hopefully you haven’t had any damage. But if you have:

Filing a homeowner's insurance claim is an important decision that should be made carefully. You want to ensure that the damage or loss you're experiencing is covered under your policy, and you should consider the impact of filing a claim. Here are some general guidelines on when it’s appropriate to file a homeowners insurance claim:

When Damage Exceeds Your Deductible
 

·    What is a Deductible? Your deductible is the amount of money you must pay out of pocket before your insurance coverage kicks in. If the damage or loss is less than your deductible, don’t, as you’ll have to pay the full amount out-of-pocket anyway.

·    When to file: If the damage is significantly higher than your deductible (e.g., $1,000 damage with a $500 deductible), filing a claim can make sense. A good rule of thumb is the claim should be at least two times your deductible before you file.

When the Cause of Damage is Covered by Your Policy
 

·    Homeowner's insurance policies usually cover damage caused by specific events, like fire, vandalism, lightning, wind, hail, theft, or burst pipes.

·    When to file: If the damage is from a covered peril and is significant enough to exceed your deductible or if repairs are complex and costly, it's appropriate to file.

After Significant Damage (e.g., Fire, Storms, or Theft)
 

·    If a major event (fire, tornado, hurricane, or vandalism) has caused substantial damage, it is likely covered under your policy, and you should file a claim immediately.

·    When to file: After a serious event like a fire, flood, or burglary, file a claim as soon as possible to ensure coverage and start the recovery process.

When You Cannot Afford the Full Cost of Repairs
 

·    If you don’t have the money to pay for repairs out-of-pocket, filing a claim might be your only option. Homeowner's insurance can cover repairs for significant damage, which is particularly useful if the damage would be financially devastating to repair yourself.

·    When to file: If your home has extensive damage (like a broken roof or plumbing issues), and you cannot afford the repairs, filing a claim might be necessary.

For Liability Claims (Injury or Property Damage)
 

·    If someone is injured on your property or you cause accidental damage to someone else's property, your homeowner’s insurance may cover legal fees and settlement costs. This is especially relevant for incidents like slip-and-fall accidents or if a tree on your property damages a neighbor’s property.

·    When to file: If there’s an injury or significant damage to others, file a claim to protect yourself from liability.