6 Outrageous Mistakes to Avoid When Filing Homeowners’ Claims

We all know why we have insurance. There are times when certain actions can be so over the top that you may be put on a high-risk list. This will not only jeopardize your chances to file a legitimate claim, but it can also cause them to be denied. Unnecessary or unfounded claims can eventually cost you thousands of dollars. If you work with an insurance professional, they can help you keep things on the right track. Here are some critical homeowners insurance mistakes to avoid.

  1. Being Afraid to File a Genuine Claim

    Many people will not file a valid claim because they are afraid their premiums will go up. The fact is, if a natural event occurs and many people are affected around you, your rates will go up whether you file a claim or not. If you have incurred damage along with others in your neighborhood, don’t be afraid to file a claim and get the compensation you deserve. You have insurance for a reason, and you don’t have to be afraid to take advantage of it.

  2. Filing an Unnecessary Claim

    Many people will file an unnecessary claim to make up for the deductible they will have to pay. This can lead to trouble if you can’t verify the damage or the actual loss of an item. Unnecessary claims are also those that are necessarily small in comparison to other types of damage. Avoid filing the smaller claims or those that aren’t really necessary. This will prevent you from being targeted for filing too many claims.

  3. Hiring a Storm Chaser

    After experiencing a catastrophic event like a tornado or hurricane, hiring a storm chaser is the worst thing you can do. Storm chasers follow large storms and offer repair services at below-average prices. Many will ask for payment upfront to cover the cost of materials and then leave with your money. Don’t hire just any contractor. Ask for references and look for ties to the community. Hire a reputable contractor who lives nearby.

  4. Not Paying Your Deductible

    If you fail to pay a deductible, you may not be able to obtain insurance in the future. Paying your deductible is part of your contract, and not being able to show proof that you paid your deductible may be considered insurance fraud. Even if your roofer offers to help you get out of paying your deductible, don’t do it. There are fines that can be assessed as well as possible jail time.

  5. Hiring a Public Adjuster

    Average homeowners make approximately one claim every ten years or so. This can make it difficult for them to know how to handle the process. Many people hire a public adjuster to file their claims. This is an added expense that you don’t need. Your insurance company has an adjuster that will assess the damage and provide you with an accurate report of your damage. Once your insurance provider has the report, they will be able to handle things from that point.

  6. Accepting a Denial

    If you have a valid and provable claim, one of the worst things you can do is accept a denial. Along with your denial, you will receive an explanation of why your claim was denied. Contact your insurance provider with your documentation and ask to refile your claim. If you have any questions, discuss your options with your insurance provider. You may also look into hiring an attorney.

Unintentional mistakes can be quite costly when it comes to insurance claims. Call our insurance experts of Family Financial Insurance Group to find out more about the claims process so you can make sure all of your claims are valid and that you are taking all of the appropriate steps. Contact us today to learn more!

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