Reasons NOT to file MA Homeowners Insurance Claims

Homeowners insurance is not the type that you should look to use/maximize as much as you can. In fact, filing numerous or frivolous claims can backfire in the form of increased insurance premiums or even denied future coverage. Homeowners insurance is really intended for major issues/disasters. Filing claims should always be avoided, if at all possible. Here are a few reasons NOT to file MA homeowners insurance claims.

The Amount Is Less Than Your Deductible

All MA homeowners insurance policies have deductibles. Deductibles are the amount of a claim that you must cover before insurance coverage kicks in. If your deductible is $1,000, then you must pay the first $1,000 of any claim amount. Your insurance would only cover any amount above that. So, if you have $600 worth of damage to your home but your deductible is $1,000, your homeowners insurance wouldn’t end up paying anything since the amount is below the deductible. If you file a claim in this case, you technically receive no benefits/money from your insurance company but your claim is still recorded in your history and will work against you!

The Amount Barely Exceeds Your Deductible

It’s also not a good idea to file a claim for damages that only barely exceed your deductible. For example, if your damages are $1,200 and your deductible is $1,000, you would only receive $200 from your insurance company after filing a claim. Yes, $200 is a lot of money nowadays and we all could use it, but consider this….your future insurance premiums are likely to increase by more than that $200 as a result of that claim. So, in the end, you are spending more money by filing.

The Damage Is Not Covered by Insurance

Imagine you had sewage backup into your home. You hire a company to immediately clean, disinfect, and make necessary repairs to your basement. You then file a claim with your insurance company to get reimbursed for those expenses, only to find out that your policy does not include coverage for sewage backup. At this point, you will receive no insurance proceeds but that claim has been noted in your history and will count against you. Filing a claim for something that is not covered by your MA homeowners insurance will only make your situation worse! It’s best to check beforehand on what your policy covers before proceeding to file a claim.

You Have Filed Several Claims in Recent Years

Claim history plays such an important role in your MA homeowners insurance rates. The more claims you file, the higher your premiums will be. This is particularly true if you have multiple claims within a short amount of time. You may find that when your policy is up for renewal, the new rate is extremely high or even unaffordable. In some cases, MA homeowners insurance companies can completely refuse to renew your policy, leaving you scrambling to find another insurer and risk being left completely uninsured. If you already have multiple claims over the last 5 or even 10 years, you may want to think twice before filing another one. If you can afford to cover the repairs yourself, it could be worthwhile to do so rather than filing yet another claim.

Summary of Reasons Not to File MA Homeowners Insurance Claims

As you can see from our list above, you really should avoid filing MA homeowners insurance claims whenever possible. Although every insurance company has a different threshold for the number of claims that result in rate hikes or even denial of coverage, it’s never a good idea to test those boundaries. MA homeowners insurance should be viewed as protection against major disasters and not something to help with minor home repairs. Think about whether your claim is worth an increased future premium.