Q&A with Chris O’Brien, Sales Manager
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Many homeowners assume they should file an insurance claim any time something goes wrong. But in reality, filing the wrong claim can raise your rates, limit your options, and cost you far more over time.
Chris O’Brien explains how to decide when filing a claim makes sense, and when it doesn’t.
Q: How does your deductible affect claim decisions?
Your deductible is the amount you must pay before insurance contributes to anything.
If the damage is below your deductible, the insurance company won’t pay. And even if the cost is only slightly higher, maybe 5–10% above the deductible; it may still make sense to pay out of pocket rather than file a claim.
When the damage is many times higher than the deductible, that’s when insurance should be used.
Q: Can small claims really hurt you?
Yes. Filing multiple claims can:
- Increase your premiums
- Remove you from preferred insurance carriers
- Push you into companies with weaker coverage and poorer service
In extreme cases, it can become difficult to find reputable insurance at all.
Q: When should you file a claim?
When the damage is:
- Covered by your policy, and
- Far greater than your deductible
Insurance is meant for large, unexpected losses, not small, manageable expenses.
Q: Should homeowners talk to someone before filing?
Always. Whether that’s your insurance agent or the carrier’s claims team, it’s important to understand:
- Whether the loss is covered
- How the claim could affect your policy
- What the process will look like
Once a claim is filed, it becomes part of your record, even if no money is paid.
Q: What’s the biggest mistake homeowners make?
Filing a claim without understanding what they’re covered for, and without knowing the long-term impact it can have.
Bottom Line:
Insurance is a balance between risk and protection. You should use it for major financial losses and be prepared to self-insure smaller ones.
Understanding your coverage and using it wisely helps protect both your home and your future insurability