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When should you file a homeowners insurance claim?

Homeowners insurance can act as a buffer between you and financial losses following incidents in your home or involving your family. However, while these policies may be necessary, they can also be nuanced and complicated, especially when it comes to knowing when to file a claim.

Why You Might Need to File a Homeowners Insurance Claim

You may want to consider filing a claim against your homeowners insurance policy in response to the following situations:

Structural damage—If your home or other structures (e.g., garages and sheds) have suffered significant damage, you may want to file a claim to assist with repair costs.

Theft or vandalism—If your home has been burglarized or defaced, you can file a claim to cover the cost of stolen items or restorations. Remember to file a police report, as your insurance company may require it.

Liability issues—This type of insurance can cover liability issues. For example, if a visitor is injured on your property, you may need to file a claim to cover their medical expenses or legal costs.

Personal property losses—If the contents of your home, such as furniture or electronics, are damaged due to a covered peril, you may file a claim to limit replacement costs.

Loss of use—Should a covered incident force you to temporarily vacate your home, you may file a claim to recoup costs related to temporary accommodations, such as hotel stays or storage space.

Things to Consider Before Filing a Claim

While the general purpose of your homeowners insurance is to provide financial relief during the aforementioned scenarios, it’s also important to consider the following before filing a claim:

Deductible—If the cost of repairs is less than your deductible, it may not be worth filing a claim as doing so could raise your rates down the road.

Claims history—Filing multiple claims in a short period can increase your premiums and may even lead to policy cancellation.

Policy terms—Not all incidents are covered by homeowners insurance. Be sure to understand your policy terms and exclusions before attempting to file a claim.