So you know you have damage to your house. Maybe the most recent storm left your roof and siding with the telltale signs of hail, or recent wind gusts ripped the flashing and gutters off the edges of your roof.
The question now is: do you file a claim? For many homeowners, this is a big, and often confusing decision. Many homeowners worry that a claim could cause one of two things to happen: the insurance company will drop them, or their rates will go up.
According to Eric Folgate, an independent inspector and blogger at Money Crashers, if their rates will rise is the one question homeowners ask about 75 percent of the time.
But here Folgate is clear, “Filing a claim will NOT cause your rate to go up…Homeowner’s insurance focuses more on the region that you live in. The number of catastrophes your area has suffered in the past few years, the potential risk in your area, the type of residential home, and the amount of coverage you buy, and other factors dictate the bulk of your premium. Filing one claim will not spike your premium.”
But will filing a claim cause your insurance company to drop your coverage? Rarely, according to Barry Flax of Goldman-Gable-Gould Adjusters International, a nationwide public adjusting firm. “The rules and regulations for a non-renewal of a policy are usually a bit more lax and less stringent than they are for a cancellation,” he notes.
The bottom line is that an insurance company is highly unlikely to drop your coverage if you file a claim. On the other hand, if you have filed several claims in a short period of time or the areas you live in has suffered significant losses, they may choose not to renew your policy.
As Flax recounts, “The important point for consumers to understand is that their policies cannot be cancelled in retaliation for filing a claim.” If you truly have damage to your home, it is your right as a homeowner to have it repaired.
This article is brought to you by ASAP Roofing, a national leader in hail restoration, weatherization, and exceptional customer service. ASAP has offices in Denver, Dallas, Salt Lake City, and Indianapolis.