You have homeowner’s insurance and are considering a roof insurance claim. Most people know that you don’t want to claim too often because it will affect your premiums, but how often is too often?
Insurance companies do base rates on the region you live in, how often it suffers catastrophes and the type of property you own. While filing one claim probably won’t set off any warning bells, they will raise your homeowner’s insurance premium if you file frequently. Since you pay a deductible anyway, it just doesn’t make sense to file a claim unless the loss exceeds a $1000 minimum over your deductible.
You also shouldn’t claim more than once every ten years, if you can help it. Get the damage analyzed before you file a claim to be certain it is worthwhile. Problems such as nail pops or loose shingles are easy fixes most times.
Insurance experts recommend taking out a large deductible and lowering your premiums. Many insurance companies offer deductibles as high as $5,000. This could mean savings for you of up to $1,500 per year which you can put in the bank for emergencies. Shop around to find a policy that suits your needs. The market is competitive.
What happens when you need to file a claim?
If you have substantial damage to your roof, by all means file a claim. If the damage is well over $5,000 then use your insurance and choose a preferred roofing contractor. It speeds up the process and the contractors are reputable. However, insurers are known to refuse coverage if you have too many claims. In this case, you will definitely pay more in premiums and fees, or they might refuse to renew your policy.
The insurance industry relies on a database called CLUE (Comprehensive Loss Underwriting Exchange). They use it for homeowner’s insurance to check the likelihood of you filing a roof insurance claim. Of course, the problem for a homeowner is if their name is red-flagged by the system, no one wants to insure them. The other side of the coin is that you can also get great rates if you have a clean CLUE report.
CLUE reports track all claims on the property. If the previous owners knew there were water issues on the property and never bothered to fix them, you could end up paying higher rates. They consider the water problem an indication that you will claim.
Finding the best homeowner’s insurance premium and coverage
The insurance system certainly isn’t perfect, but if used wisely it does protect you. As a consumer, you would do well to shop around for the best premiums and coverage. Some companies have cut their guaranteed replacement policy and increased their homeowner’s insurance premium, while others offer good value for the money.
When you do need to file a roof insurance claim, be certain you choose a local roofing contractor who offers a quote, contract and a guarantee on workmanship. When you need work done you want to have it done properly, and at a reasonable cost. In the Greater Atlanta area, The Roof Clinic is a recognized leader in the roofing industry and a preferred contractor for major insurance companies.