Is there a decrease in value if I file a claim?

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.

Main reasons why you should have home insurance

Taking steps to ensure that your property is safe from unexpected situations can prevent you from paying a small fortune in repair costs and other related expenses. Home insurance is an important part of avoiding unnecessary financial challenges that are associated with repairs, liability or similar problems.

Protecting Against Financial Losses

Financial losses may include the loss of furniture, electronic devices or other personnel belongings that you may own. It can also mean the cost of repairing or replacing your home in the case of a total loss of your assets.

Home insurance is designed to protect against those financial strains so that you are not responsible to replace every item that you owned after a covered situation.

Keeping Your Lender Happy

Many lenders require that you maintain some home coverage to protect the asset until your mortgage is completely repaid. Never presume that your lender will be happy if you avoid the cost. Some lenders may have a minimum coverage requirement while others will only ask that you obtain a policy.

Protecting Against Liability

Accidents are part of life. It is possible that a guest in your home may fall down the stairs, trip on a slippery floor or otherwise face injuries due to an accident. Liability protection in your plan will ensure that you are not paying for those medical bills and related expenses out of your pocket. Instead, your insurer will pay for the additional expense and ensure that the medical bills are paid after a guest is injured in your home.

Protecting your home requires the right type of insurance policy. It is important if you want to keep your family safe from financial strains. Contact us to talk to an agent to learn more about your options and the coverage that is available.

Should I increase my deductible to make my home insurance policy cheaper?

Increasing the deductible on your home insurance in Colorado may help reduce the price of your monthly premiums, but it is not always the best solution to ensure that your cost is as low as possible. In some cases, it may be better to keep your current policy since there are several factors that may contribute to the cost of your claims.

Savings Potential

The amount that you may save by increasing the amount that you are willing to pay if you make a claim on your house will depend on your insurance provider and the policy that you selected. In some cases, you may save as much as 25 percent on your monthly premium, but the exact amount that you can expect to save will vary between insurers and policies. Some insurers may not provide the same savings rate.

Cost of Repairs

When your house is damaged, making a claim on your policy is an option; however, you will want to keep in mind that every plan is unique so it is possible that you may be required to pay more than you expect.

Some insurers may have a separate deductible that you are required to pay in specific situations. For example, a major snow storm that damages your house may have a separate charge beyond the basic amount that you have agreed to pay for most problems and claims. Read your policy before you assume that your plan is appropriate for your needs.

Purchasing home insurance and increasing the amount that you will pay in the event of a claim may help reduce your rates. Depending on your goals and preferences, it may or may not be appropriate to adjust the amount that you will pay after damage to your property occurs. Contact us to talk to an agent for more details.

If I don’t let my insurer know about changes on my account could this affect my coverage?

If you don’t call your agent or insurer and tell them of a material change in your circumstances since you purchased the policy, it could affect your coverage. While you do not have to notify your life insurance company because you decided to dye your hair red, you should notify them if you are diagnosed with a terminal disease.

Rates on auto insurance could change for any number of reasons. Sometimes your rates will go up by reporting a change and sometimes they may go down. Your rates may change if you move to a new neighborhood. They may change if you get a new job and have to drive 200 miles more each week to commute to work. If your son or daughter goes away to college and they are no longer driving the family car, you may benefit by a lower premium.

Insurance companies do not like surprises. They definitely want to know if you have been in an accident, even if you do not want to file a claim. They want to know if you built an addition to your home and they want to know if you decided to take-up skydiving. Anything you do that has the potential to increase or decrease risk should be reported.

You’re probably wondering if you must report every change or you can be selective about what you report. Who is going to know if your uncle moves in and starts using your car to go out on a Friday night? Well, if you fail to notify your insurer that there is another person driving your car, if that person gets into an accident, you may not be covered.

If you do not report material changes to your insurer, eventually they will find out. Depending on the particular omission, the consequences could be anything from a higher premium at renewal time to cancelation for intentionally misleading your insurer to get a lower rate.