Are you in a situation where you could use your homeowners insurance to make a claim, but you are unsure if you should use it or not? If so, it will help to think about the following things before you reach out to your homeowners insurance provider.
What Is Your Deductible?
The biggest factor that you are going to have to think about is how expensive the repair is going to cost, and what your homeowners insurance deductible is. Deductibles can vary based on what you picked when signing up for homeowners insurance, and it can be as little as $500 or even as much as 1% of your home's value. Some basic math will tell you if the repair is going to cost more than the deductible and how much you are going to save by using insurance.
For example, if you have a $2,000 deductible and a $2,200 roof repair, you may find that it is not worth it to use your homeowners insurance due to the risk of your premiums going up. However, if you have a $2,000 deductible and $10,000 worth of repair work, then it will be worth it to use your homeowners insurance policy.
Will You Be Performing The Repair Work Yourself?
You must figure out what your homeowners insurance policy allows when it comes to who performs the repair. You may need to work with a certified contractor in your area, or you may be given a specific amount of money for the repair and can do it yourself. If you are not allowed to do the repair on your own, this may be a big influence. Handy homeowners may find that they can perform the repair for much cheaper than a certified contractor, and decide to do it themselves because it is cheaper than paying their deductible.
What Additional Benefits Will You Receive?
You may be surprised that there are additional benefits of using your home insurance policy beyond the price of the repair. For example, will you have an allowance for staying in a hotel while the repair is being done? Will you be given an allowance for dining out while your kitchen is being repaired? These can be unexpected benefits that make using home insurance worth it.
Reach out to your homeowners insurance provider to find out more information about how your specific policy relates to the incident you want to use it for.