When home insurance was first introduced, the intent was for catastrophic coverage. For example, if your home burned down or a tornado came through and swept it away you, would have coverage to rebuild. The owner of the home was intended to take care of normal mishaps - a broken window from a stray ball, that leaking roof that caused damage to the inside of the home, a damaged pipe and so forth.
How this coverage is designed now, the more claims you have the more likely your rates will increase. This is due to a shift in perspective on insurance. Many people view it as a resource for any damage to their home. Instead of paying for minor repairs themselves, their insurance should pay for the damage. In our office we often hear, "Why do I pay insurance if I can’t use it? They increase my rates if I do!"
Our agency believes in not only helping you, but also doing what's best in bad situations. In the event of a claims we will do an analysis to let you know what may happen to your premiums if you file a particular claim. Our account managers are trained consultants and can guide you through the process. Typically, your policy should be used for catastrophic reasons only, which do not happen very often, to spare you from any major increases. However, the insurance companies understand that things happen and that you should be able to rely on the coverage you have. That is why carriers usually only increase your rates after having more than one claim in a three year period.
If you have questions on a claim for home or auto, please call our office today!