Insurance is meant to protect you against financial loss. But is it really meant to protect you from any and all financial loss? When it comes to filing a loss claim on your home insurance, there may be times when not filing may be the wisest course of action.¹
According to a CNN Money report, filing a single claim, on average, will result in a 9% increase in your monthly premium. And, if you file a second claim, your premium will climb an average of 20%.²
Some insurance companies may protect you against premium increases, and in Texas insurance companies are prohibited from increasing rates following a first claim. However, if it means your premium will rise, you may need to decide whether it makes sense to file a claim.
It may not pay to file a claim when:
Another factor to consider: you may want to file a claim regardless of dollar amount if someone is injured on your property in order to protect yourself in the event that you are sued by the injured party.
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