According to the Florida Office of Insurance Regulation, 732,390 claims were filed in Florida in 2022. Many residents here in Florida file claims without understanding the full ramifications of filing claims. Though claims will assist you in repairing damages, they can also negatively affect your insurance moving forward. Filing an insurance claim should only be made when you have major damage to your property, and the cost of repairs significantly exceeds your deductible.
It is best to avoid filing claims if possible. Claims follow the home and the homeowner up to 5 years after filing and increase the rate of renewals and new business policies. Depending on the number of claims filed, homeowners can become ineligible for certain carriers, making the risk harder to insure.
An instance of damage that does not necessarily require a claim is a windstorm that damages some of the shingles on a roof and causes some water damage in the process. The cost of repair comes to about $3500, and the homeowner has a $2500 deductible. In this situation, the homeowner should think twice before filing a claim, because the difference between the cost of repair and the deductible is not significant enough to file a claim.
However, if there is extensive damage to the property and there are major repairs needed, then filing a claim would be something to consider.
For example, Kat Hedgepoth, a resident of Orlando, Florida, experienced an afternoon rainstorm with extreme thunder and lightning. Kat herself was not worried, but her dog, Annie, was. The storm scared Annie so much that she began to search everywhere for a place to hide from the storm, and in the process, destroyed a water supply line. When the line was destroyed, the entire downstairs of the home flooded, and Kat woke up to major water damage.
The cost of repair was around $10,000, and the Kat has a $2500 deductible. Filing a claim in this instance is a good idea because the damage is extensive, and the cost of repair far exceeds the deductible.
It is important to remember that the role of insurance is to assist a policyholder with repairs when a major loss occurs, not to assist with every repair and update for the home. Understanding the extent of the damage, the deductible on the policy, and what effect claims have on rates, can guide policyholders to have a better understanding of whether the repair is claim-worthy or not. Also, do not neglect speaking to an agent before filing a claim, as the agent over the policy will have the best understanding, and can give the best advice to their clients on what to consider before filing.