3 Tips for Avoiding Homeowners Insurance Rate Increases

11/24/2020 (Permalink)

Home insurance claim form

3 Tips for Avoiding Homeowners Insurance Rate Increases

Filing a homeowner's insurance claim cannot only lead to an increase in your current insurance rates but also may affect the premiums of future insurance policies. However, there are steps you can take to reduce the chances your insurance rates will go up due to collecting on the policy.

1. Do Not File Claims for Minor Damage
The more claims you make, the more likely your insurance company may increase your rates, cancel your policy or refuse to insure your property. One way to decrease the chances of this happening is to avoid filing claims for minor damage. For example, if your home has water damage from a broken pipe that caused a few kitchen tiles to peel up, it may be better to replace the tiles out of pocket than to file for reimbursement.

2. Keep Your Home in Good Condition
A poorly maintained home is more likely to be damaged in a home flood or other disaster. Keep your roof patched and replace it when needed. Seal any leaks around the windows and doors. Fix any leaking plumbing and repair or replace broken appliances. If you need to file an insurance claim, be sure to mitigate your damage by cleaning up standing water promptly and covering holes in the roof, windows or siding with plywood or tarp. If there is a lot of water in your home, you may want to consider having a water remediation company in Nashville, TN, dry it out thoroughly.

3. Consult Your Insurance Professional
If you are unsure whether to file a claim or not, ask your insurance agent. Your policy is there to be used when you need it so do not be afraid to ever file a claim.
Rate increases are affected by several factors, including how often you file an insurance claim. Reducing the number of times you file can help you avoid rate increases.