Your Home Needs a Repair, Should You File an Insurance Claim?
Carrying homeowners insurance coverage on your Parkland home is a smart move, and a requirement now for any Parkland homeowner that has used the help of a mortgage to finance their home purchase. Homeowners insurance can help you to get your home back in shape in the event of your home incurring significant damage. But should you call up your insurance provider and ask for help with every large repair needed?
Sometimes It is Better Not to File a Homeowners Insurance Claim
Homeowners insurance is not set up with the mindset to be a fallback every time there is damage in need of repair in your home. Constantly making claims will unfortunately leave a homeowner without an insurance policy because the company will use their right to deny coverage. And in some cases, your policy may not even cover the issue at hand.
What homeowners insurance does not cover
It is always good to read through your policy to make sure you know all of the specifics about your coverage. Basic homeowners insurance coverage will not cover some significant issues that commonly occur within homes. These include most flooding, bug and rodent infestation, several areas around the pool, damage caused by renovation, damage when the home is being rented out through Airbnb, and external utility and service line issues.
It is also good to make sure you know the coverage you have when it comes to natural disasters as homeowners insurance does cover some natural disasters but not all. If something has happened at your home and you were not sure that it is covered it is good to look over your policy but trying to file a claim will unfortunately lead to no help.
Not staying on top of maintenance
Not many Parkland homeowners are aware that homeowners insurance will not provide coverage help if the home has been neglected and uncared for. For example, if you know something in your home has needed attention and a minor repair but have left it and a larger problem results from not making the small repair then the homeowners insurance will see that as an issue the homeowner needs to remedy with their own money.
It is also good to note that homeowners insurance is not coverage that takes care of everyday wear and tear from living in the home. With time a home ages, and will become worn. Items like peeling paint or a door that doesn't quite close right will not be covered in your policy. Homeowners insurance is in place for unexpected major repairs.
The repair cost is less than your insurance deductible
Every homeowner's insurance policy will have a deductible. The deductible is the amount that is agreed upon in the policy contract that a homeowner will pay out of their pocket to help with repairs and replacement before the insurance will step in with monetary help to cover the costs. If a repair is less than the deductible amount it is not worth filing a claim.
Good times to file an insurance claim for your Parkland home
It is covered under additional endorsements
Standard homeowners insurance coverage eliminates some coverage but there are policies that will offer additional coverage for items in your home and give you the option to pay a little bit more to receive extra coverage. This could be for personal property, additional buildings on your property, sewer backup coverage, and more. If you have opted to pay the extra money for this coverage and there is damage or theft of personal property then it is a good idea to make a claim.
The damage or loss is more than your deductible
If the cost to get your home back in shape is more than your homeowner's insurance deductible then it is a good time to file a claim so that you are not paying a large sum of money out of your pocket. You have been faithfully paying into your insurance coverage program and now is an OK time to ask for some monetary help to get your home back in shape.
The damage is extensive and within your coverage policy
There are many unforeseen things that can happen in life and as such it is not uncommon to run into a large incident causing damage to your home over its lifetime. This is why homeowners insurance exists in the first place. If you find yourself with a large amount of damage like a house fire or a tree falling on your home that will cost thousands of dollars to repair this is definitely the time to make a claim.
When purchasing homeowners insurance it is always best to make sure that you know everything about your policy and that you review it yearly to ensure that you have significant coverage for your home as it increases in value.
For more information on buying or selling homes in Parkland and surrounding areas please contact us anytime.