Filing a claim on your insurance does not mean that the value of your policy will decrease. After a claim is made and you receive funds for the damages to your property, your insurer may increase your rates. That does not mean that your coverage will decrease in value by the amount that you received.
Actions Insurers May Take
If your insurer feels that it is too expensive to maintain your coverage, then it is possible that your policy may be canceled or your insurer may not renew the plan after it expires. Cancellation usually occurs when you choose to drop your coverage or when a specific situation like fraud occurs. Otherwise, your insurer will maintain coverage until the current contract expires, which may be as long as a year. Non-renewal means that you will need to find a new policy.
When your insurer continues to provide coverage, the amount of protection that you have will not usually change unless you request a different policy. You may notice that your rates increase, but the amount may vary based on the situation.
Keeping Claims Down
Even though you will not usually see a decrease in value on your insurance policy, you may notice that the rates increase every time that you make a claim. It is usually best to avoid claims when the cost of repairs are limited and you can easily afford the expense. Small claims can have as big an impact on your policy as larger claims.
Filing a claim does not mean that you will suddenly have limited coverage. Instead, you will usually notice that your rates will increase and your insurer may decide not to renew the policy when it expires. Contact us to speak to an agent to learn more about the claims process.
