Every month, you make sure that you send out payments for your home insurance. Although some friends of your told you that paying for home insurance is like putting away money into something you don’t need, you still religiously paid for it. Buying home insurance is a smart move. While everybody else thinks that it is not essential, the value that it comes with is realized only when you need it, but you don’t have it.
However, what many homeowners think is that having insurance should be used to an extent. For example, while moving the television from the second floor to the first level of your home, you slipped, and the television unit fell. You now have a thousand dollars worth of junk on your living room floor. You call the insurance company, and you file a claim for it. Insurance pays you, and you’re happy. Such types of claims can be considered small claims.
You repeatedly file for small claims thinking that it is the only way you can get even with your insurance provider until the day comes when you receive a letter from them saying that they are no longer offering you the renewal of the home insurance policy that you get from them. This may come as a surprise to you, though it shouldn’t. In fact, getting the non-renewal letter should be something you expect, primarily because of the series of small claims you have made.
The truth is pretty simple. The insurance company sees you as a dangerous risk. In a short period, you have managed to file several small claims. This is something that most homeowners must know. Home insurance coverage serves both minor and significant claims, but insurance companies consider these things as an investment too. The more claims you file, the higher the risk you are for the company to lose money. It is likely that a significant claim is made which could be a result of small accidents that happen in the house.
Homeowners buy insurance because they want their home and their belongings to be protected from fire, flooding, and even theft. Filing for a claim is always a tricky business. Too many claims can lead to an increase in your monthly premium, non-renewal or even cancellation of your homeowner’s policy. So before making a claim, make sure to think long and hard. Remember to consider the value that comes with the claim you’re making. Is it worthy?