Using your homeowner's insurance

[DawnM]

We have always had insurance but have never used it.   I guess we figured it was for major things, like the house burning or something.

 

We have two issues right now.  A hole was burnt in our kitchen countertop by me when a candle glass jar burst.  And while we were in Florida in Oct, the fridge drain pan overflowed and the hardwood floor in the kitchen buckled near the fridge, making it necessary to replace the kitchen flooring soon.

 

Neither has been fixed.

 

A friend told me to get insurance to pay for it.  She uses her insurance as often as she can.  She didn't think it made her premiums go up.

 

I thought your insurance would go up after a claim or two????

 

The two repairs were planned before they had issues too, we just haven't gotten around to it.

 

What would you do?

[Dandelion]

We would definitely be using our insurance to replace the flooring, assuming the cost exceeds the deductible. Maybe not the counter top.

 

We've used our insurance every few years. Our premiums have not gone up as far as I know (aside from regular price increases not related to claims).

[Ottakee]

The floor maybe but I don't know if they would cover the counter top. I would think the rates go up with more claims. We did make a claim when my horse trailer was damaged in a wind storm but that was considered "an act of God" and not our fault so didn't increase our rates.

[J-rap]

I've heard so many stories about homeowner's insurance being cancelled or at least greatly increased after one episode.  I would definitely not use it to pay for a new counter top after the glass jar bursting.  I'd maybe talk to your insurance rep about the kitchen floor.  To me, that's kind of borderline, but if you had to replace the entire kitchen floor it might be worth checking into.

 

We had 3 out of 4 main water pipes freeze when we were gone, causing flooding throughout our entire house.  We had to put in almost $20,000 to fix everything.  Our homeowners insurance covered everything, and to me, that's mostly what I think of homeowner's insurance being used for, things like that.

[gingersmom]

I had a tree fall on my house (didn't damage roof but had to pay to have it removed) and my insurance company told me they would raise my rates if I filed a claim. 

 

Plus the deductible was almost the same as the cost to remove tree so I never filed a claim.

 

I would never think to file a claim for things like you mentioned. Interested to hear others experiences.

[jenangelcat]

I don't know what it's like in the U.S, but I used to work in insurance here in Canada and I would never claim for anything that wasn't a huge loss (house burned down).  Nobody has to insure your house, it's not required by the government and if you are constantly using it for little things they can and will drop your policy and others can and will refuse to insure you.  I have insurance on my house because it's required for my mortgage and for peace of mind that if my house burns down, I won't be completely screwed.  

[zoobie]

Depends on how big the damage is. I don't use it for things close to our deductible. Our fridge had a leak in the ice maker line and it did a ton of damage before we discovered it. The wall behind it had damage, and the kitchen flooring ran through the laundry room, mud room, and dining room. They wound up having to pull up subfloor and it was a $30K repair.

 

For your counter top, will you have to replace all of it? If you have a big kitchen with a pricey surface, that could be a significant repair. Same with the floor. If you make a ton of claims, the insurance company can drop you as a customer. Or they can raise your rates. But you shouldn't be afraid to use it when you need it!

[kitten18]

I would consider it for the floor (depending on the cost) but not for the counter.

 

 

We've only filed one claim in 19 years and that was for $30,000 in medical bills when our cat bit my mom.

[Spryte]

I would consider filing for the floor - especially since there could be even more damage underneath (water damage)... 

 

I would not consider filing for the counter top.

[goldberry]

We live in an area close to where all the fires were in Colorado, this year and last year.  Insurance companies are dropping people left and right (not even people damaged by fire, we are talking within 50 - 100 miles), and those that are still covering are raising rates almost double.  They don't have to have any justification to do anything they want.  They can drop a customer or raise rates without any accountability. 

 

I wouldn't file a claim unless it is absolutely necessary (ie, a larger expense).  Insurance companies can do whatever they want, so it's best not to make them annoyed with you.  (Yay free market! :glare: )

[AmandaVT]

My cousin's husband (cousin in law?) filed a few claims with their insurance policy within the first year of owning their house. Then 3 years later, they had a big claim to file (I can't remember what it was). The insurance company told them if they filed another claim, they would be dropped from the policy. So they had to eat the cost. I would check with an agent before filing anything.

[G5052]

My cousin's husband (cousin in law?) filed a few claims with their insurance policy within the first year of owning their house. Then 3 years later, they had a big claim to file (I can't remember what it was). The insurance company told them if they filed another claim, they would be dropped from the policy. So they had to eat the cost. I would check with an agent before filing anything.

 

I've heard of this as well.  A neighbor put in two small claims less than $1000, and then had a big one with a tree that hit the roof and damaged the side of the house.  They were told that claim would be their last with that company if they filed.

 

We only use homeowner's insurance for significant "act-of-God" type issues.  Car insurance only if another vehicle is involved and/or if there is several thousand dollars of damage.

[JustEm]

We just filed a claim a few months ago because of a water leak in one of our pipes.   It damaged one wall in the living room and parts of the flooring in the living room and kitchen.  Our deductible was $1000.  The insurance company ended up giving us a check for $5000 because the total estimate of repairs was $6000.  It was so high because insurance covered repainting anything that was the same color as the damaged wall so it would match (that was our entire downstairs)  and reflooring the entire downstairs to match.  It also included the labor cost involved.

 

A month later we got a letter saying our rates would go up $60 because we lost our utility rating discount.  If we redid the entire plumbing in the house then we could get that rating credit back.  We actually are replacing the plumbing because that was the 4th leak in 3 months(just the first to cause damage.) Our insurance will not cover another leak because we know that the plumbing needs to be replaced.  

[idnib]

My parents had gone 25 years w/o a claim and then made one for the roof after high winds removed some of the tiles. The claim was $3k and soon after their rates went up for having made the claim. The new rate was enough to make up the $3k for the company in a few years. This was State Farm.

[happypamama]

I would talk to your local agent, if you have one. Ours is really helpful and was able to help me determine whether a claim was worth filing or not. In thirteen years and three homes (but the same company), have used the insurance once -- when our septic pump fried in a big storm, and it was a fairly expensive repair, quite a bit more than our deductible. Even then, it was a little borderline, but money was very tight, and our agent said it would not our rates, and it does not seem to have done so, nor have they dropped us (we have ERIE, in PA). I probably would not use the insurance for countertops, unless you were talking needing to replace a very large and very expensive amount of countertops. Maybe for flooring, but it would really depend on how extensive it was and how expensive (I do not think our current kitchen flooring would be worth a claim).

[KungFuPanda]

Don't be surprised if they only cover repairing the damaged section, but it replacing the whole floor. They do stuff like that. I had a tree fall on my house and we had to rebuild the roof and both upstairs bathrooms. It was like having a part-time job just keeping everything going. I NEVER want to do that again. It also put us on Inspection Radar. We were handed a list of things to fix if we didn't want the to cancel the policy and that was A YEAR after the repairs. It's odd getting a letter with photos of your house. Luckily, these were repairs we were making anyway and had budgeted for. If we hadn't already started I'm not sure we would have met their deadlines!

[happypamama]

And to tell you what I have been told: sometimes, it is just not a great idea to call your agent to ASK about filing the claim. SOME companies require their agents to file this on the record, and this can count as a "claim." So, for example, if you called to find out about making a claim about leaky pipes, and did not make the actual claim, let's say next year you have another leak. The insurance company could deny you the claim because ***you knew you had leaky pipes, as we have proof here in this call, and you did nothing about it.****. GRRR.

 

Not all agencies are like this; some are. I can't remember who. It's one benefit of having an independent agent.

Yikes! Good point.

[elegantlion]

And to tell you what I have been told:  sometimes, it is just not a great idea to call your agent to ASK about filing the claim.  SOME companies require their agents to file this on the record, and this can count as a "claim."  So, for example, if you called to find out about making a claim about leaky pipes, and did not make the actual claim, let's say next year you have another leak.  The insurance company could deny you the claim because ***you knew you had leaky pipes, as we have proof here in this call, and you did nothing about it.****.  GRRR. 

 

Not all agencies are like this; some are.  I can't remember who.  It's one benefit of having an independent agent. 

 

Yes, some companies will do this. 

 

I would not use insurance for anything that was near my deductible. I would get estimates on the floor BEFORE you call your agent. 

 

Eons ago, I worked in insurance underwriting. We would review policies that had too many claims in a certain period. A lot of it can depend on what catastrophic event has been in your area, how long you've had the policy, any other claims you've had etc. Insurance is not for maintenance, I would not use it as such. 

[DawnM]

UPDATE:

 

we are considering moving.  I spoke with a realtor today and she said NOT to call my insurance company because it would show up in the report to potential buyers and could red flag concerns about mold with water damage, etc....

[Alenee]

Our house was robbed two years ago and they took a ton of computerized equipment for dh's business so we filed a claim.  Our insurance to that point cost $900/yr.  When it was time to renew, it had doubled.  It wasn't too big a hassle because we found a new company that cost half our original premium but we were certainly stunned.  I would never think to use insurance for a small flooring issue or countertops.  In my mind, it's for the major unexpected things like $$$$ water damage or the like.

[KatieJ]

This seriously makes me nuts that insurance companies have everyone so afraid to use their policy.  Of course it is for things like your counter top and a burning candle, and of course it is for damaged floors from a plumbing issue.  Yes, it is for all of that!

 

Yes, they will, can and do raise your rates or cancel your policy if you turn in 3 claims in a short period of time. (3 claims in 5 years is what was quoted to my neighbors.)

 

I started another thread about insurance, adjusters, garage damage, etc.  When your insurance agent sells you a policy and tells you they are there to put your house back to the way it was before your incident, but they don't tell you the adjustor has all the power and makes all the decisions, it smells of bait and switch and that is what we are dealing with. (It is settled and everyone is happy at this point, but the work hasn't been done yet.)

But would I hesitate to use my policy because of it, no way.  If they cancel me when this is over, or raise my rates, i will be happy to switch and move on.

 

[shawthorne44]

I don't know if they still do this.  But, when I bought my house in 1997 I found out about a ... something like a credit report but for insurance claims.  Out of curiosity, I got a report on myself.  It seemed to have been tried to the address because I found out about the claims made by the previous owner.  I always set my deductible rather high, because I figure I won't file a claim for a small amount anyway.  

[Alenee]

I don't know if they still do this.  But, when I bought my house in 1997 I found out about a ... something like a credit report but for insurance claims.  Out of curiosity, I got a report on myself.  It seemed to have been tried to the address because I found out about the claims made by the previous owner.  I always set my deductible rather high, because I figure I won't file a claim for a small amount anyway.  

 

Yes  and all insurance companies have a way to access it.  We were turned down by several when we began looking for a new company because of the claim we'd made.  :(

[Moxie]

UPDATE:

 

we are considering moving.  I spoke with a realtor today and she said NOT to call my insurance company because it would show up in the report to potential buyers and could red flag concerns about mold with water damage, etc....

 

What report??  We just bought and sold a house and I know of no such piece of paper??

[SproutMamaK]

I live in Ontario and before my homeschooling days I worked as a personal insurance broker. Since it's a different area things may be quite different, but up here it varies greatly from company to company, and also from house to house. For example, I live in an older home with some knob and tube wiring and lead pipes. For that reason, our house is insured with a company that insures higher-risk homes. With one claim, our rates go up for three years. With two claims in 5 years, we would get dropped. With a newer home, though, companies are often (marginally) more gracious. With the first claim you may just lose a discount that you would like have had on your policy for being "claims-free". With the second claim you'd see your rates go up, and you wouldn't be dropped until your third claim.

 

I don't claim for anything unless the total is into the thousands, as I don't want to be put into the position of being forced to make a claim in catastrophic circumstances later and then losing insurance. The things you mentioned seem like normal wear and tear on a house to me, though, so I may have a skewed point of view on this one.