A quick look at why we pay for something we almost never use, and how it got to that point.
How have the insurance companies scared us into not using the policies we pay for every month? The average American homeowner shelled out about $962 for their homeowner’s insurance in 2016. While this may not seem like a lot, when you couple that with the fact that each individual homeowner only files a claim once every ten years on average, you see just how little it is actually being utilized.
The most common concerns regarding homeowner’s policies are fears that: A) Their rates will go up based on a claim. B) They could be dropped or cancelled or C) They’ll have to pay the deductible anyway. The insurance companies want to appear to cover any “mayhem” that may happen, but the reality is they don’t actually want you to file a claim. All of that being said, homeowner’s insurance is nothing like car insurance. Your rates are based on the location and assessed value of the home, not the homeowner. Your rates will likely go up regardless of claim activity. This is another reason to shop for new insurance every few years to keep the companies competitive. As far as deductibles, we will cover those a little later.
What Should I Do If I Have A Claim?
If you have damage to your home and you are not sure if it is covered, you do have the option of reaching out to a State-Licensed Public Adjuster. There are a handful of companies that provide public adjusting services. Some offer free consultations, others charge for the policy coverage review. Keep in mind that the Adjuster that the insurance company sends out to assess the damage to your home works for the insurance company and is often incentivized to lessen the damage reported. This is similar to filing a lawsuit and the defendant offering the use of their defense attorney.
What Will I Owe Out-Of-Pocket?
If filed and handled correctly almost all, if not all, of covered damage should be covered by your homeowner’s insurance, less your deductible. However once the claim is negotiated and approved you as the homeowner can shop to find a reasonable price for the necessary repairs. This will often allow you to get the repairs done for less than the amount given by the insurance company.
What If I Disagree With The Insurance Company’s Adjuster
This is another situation where a State-Licensed Public Adjuster would be the clear choice. The individual homeowner has almost no recourse to dispute an insurance claim without the assistance of a public adjuster. The better quality insurance adjustment companies will never make you pay out-of-pocket for their services and will only charge a fee based on the additional amount they are able to negotiate on behalf of the homeowner. You should NEVER pay up front for insurance adjusting services.
What Should I Do Next?
To find out more about public adjusters, homeowner’s insurance and some of the pitfalls of filing a claim contact a specialist at Home Repair Cash. They can help you sort through your options at 888-343-8618. You can also fill out in the information form HERE and we will reach out to you.