When Should I File a Homeowners or Landlord Insurance Claim?

It’s no secret, the years of 2022 – 2024 have been the most difficult for the property insurance industry. Inflation and a warmer planet with significantly more storms and wildfires have caused insurance companies to lose money on property insurance the last three years.

Homeowners Claims – What you Should Know:

CLUE: Comprehensive Underwriting Loss Exchange is a data base where insurance companies share details from claims for both the policy holder and the property. Insurance companies use this data to property rate for the risk. Any claims you file will follow you and the property for at least five years.

How Often Can I File a Homeowners or Property Insurance Claim: Filing a claim every five years will not get you cancelled. Filing two claims in a three-year time period will get you cancelled. Once you have been cancelled, obtaining new insurance coverage will include a much higher premium, higher deductible and can exclude water damage and may include other limitations. Qualifying for a preferred rate and policy can take four or five years.

Deductibles: In the event of a claim, you will be responsible to pay the deductible first. In 2024, companies have moved to a minimum deductible of $2500.00 and higher depending on the value of the home and other factors. If the damage to your home is under or close to your deductible, do not call the company and file a claim! That call, and claim inquiry will remain on your record for five years. Call Anderson Insurance agency before calling the company for professional claims advice on whether you should file a claim.

Roofing Claims: Traditionally and historically, insurance companies never covered roofs if they simply wore out and were at the end of their life cycle. Every property insurance policy includes an exclusion for wear and tear and deterioration and roofs were not covered under that basis. In the “good ol’ days” when someone’s roof wore out, they simple replaced it without using insurance. In the last seven or eight years, aggressive summer sales/door knocking roofers have abused the system and taken advantage of the insurance companies claiming wind or hail damage for roofs that were simply worn out. As a result, and to keep insurance affordable, almost every insurance company has added a roof schedule and higher wind and hail deductibles to their policies. These measures will prevent claims for roofs that are simply worn out and at the end of their use and for roofs that may only have cosmetic damage but still usable. Call us first before filing a roof claim. With the roof schedule, you may not have much coverage and if the insurance company is only going to pay you a few thousand dollars because your roof is at the end of its life, think twice before filing that claim. Always consult with and use a local and reputable roofing company with seasoned installers. NEVER – use the roofing companies that knock on your door, they will ask you to sign a AOB – Assignment of Benefits, giving them full control of your claim. If the insurance company does not pay them what they want, they can and will bill you or lien your home. Stay away from door knocking roofers.

Don’t use your homeowners insurance policy as a maintenance plan. Maintenace types of claims are typically not covered and the inquiry can cause you to get cancelled. Best practices are to use your homeowners insurance for the catastrophic things that may happen to your home.

If you are a soccer fan, think of homeowners insurance in the terms of the yellow or red cards. One claim could be considered a yellow card, two claims will get you a red card and get you cancelled. Call Anderson Insurance before filing a claim and let’s prevent the red card and keep you in the game.

Anderson Insurance Group – Salt Lake City – Utah

Home Claims Information | Utah Insurance Department

When Should I File a Homeowners Insurance Claim? | Anderson Insurance Group

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