Not every home insurance claim is created equal. Knowing when to file — and when to pay out-of-pocket — can save you money and help you maintain your coverage. Here’s how to spot the difference between a “good” claim and a “bad” one. Check out our guide below!
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Not every home insurance claim is created equal. Knowing when to file — and when to pay out-of-pocket — can save you money and help you maintain your coverage. Here’s how to spot the difference between a “good” claim and a “bad” one.
What Is a Good Claim?
Good claims involve substantial damage or significant financial loss, such as:
- Fire or smoke damage
- Severe storm damage (e.g., roof collapse)
- Major water damage from burst pipes
What Is a Bad Claim?
Bad claims are those that may increase your premiums and affect your eligibility but provide little benefit, such as:
- Minor repairs you can cover yourself
- Cosmetic damage like small paint touch-ups
- Frequent small claims, which can trigger premium hikes
How to Decide When to File
- Assess repair costs: If it’s close to your deductible, consider paying out-of-pocket.
- Ask your agent if filing a claim will impact your premium.
- Avoid filing multiple claims within a short period whenever possible.
Not every home insurance claim is worth filing. Good claims cover major damage like fires, severe storms, or burst pipes, while bad claims—such as minor repairs—can raise premiums without much benefit. Before filing, assess costs, consider your deductible, and check the impact on your rates. Cornerstone Insurance Agency LLC can help you make smart insurance decisions. Learn more in our related blog: My Insurance Cost Went Down—What’s the Catch?
This article is for informational purposes only. You should not act based on this information without first consulting with your insurance agent; if you would like a quote from a Cornerstone Insurance Agency licensed agent, contact us. We disclaim all liability for actions taken or not taken by you based on the contents of this article which is provided “as is.” Cornerstone makes no representation that this content is error-free.