Should You File an Insurance Claim for Water Damage? Here’s What You Need to Know
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Should You File an Insurance Claim for Water Damage? Here’s What You Need to Know
FEBRUARY 11, 2025 | SHARE RESTORATION
Key Takeaways
- Filing an insurance claim for water damage may not always increase your premiums.
- The financial benefits of filing a claim often outweigh the risks of paying out of pocket.
- Share Restoration provides expert guidance to help you navigate the claims process.
Understanding Homeowners’ Concerns About Filing a Claim
Water damage is one of the most common homeowner emergencies, yet many hesitate to file an insurance claim. Concerns range from premium hikes to policy cancellations. Here are the most frequent fears:
- “Will my insurance drop me?” Many worry that a claim will cause their provider to cancel coverage.
- “Will my premiums skyrocket?” Homeowners fear unaffordable rate increases.
- “Is it even worth filing a claim?” Some wonder if paying out of pocket is a better choice.
At Share Restoration, we understand these concerns and work to ensure you make the best financial decision.
What Happens When You File an Insurance Claim?
1. Filing a Claim Does Not Always Lead to Higher Premiums
Filing a claim doesn’t automatically increase your rates. Here’s why:
- The Clue Report Matters: Insurance providers track claim history for both the property and the homeowner.
- Multiple Claims Have a Bigger Impact: A single water damage claim often has minimal effect on your premium, but filing three claims within three years could be problematic.
- Insurance Adjusters Weigh Risk Factors: Not all claims lead to a rate increase, especially if the damage is significant.
2. “Zero-Dollar” Claims Still Count
If you start but later withdraw a claim, it still appears on your Clue Report as a zero-dollar claim. Insurers may still factor this into their risk assessment, making it crucial to file only when necessary.
3. The Math: Why Filing a Claim Makes Financial Sense
The average water damage claim is $12,000 to $15,000, while the typical premium increase is around 12% ($240 per year for five years).
Example Calculation:
- Premium increase: $240/year × 5 years ```html = $1,200 total increase
- Average out-of-pocket water damage repair cost: $12,000+
For most homeowners, paying a small increase in premiums is far better than covering the full repair cost.
How Share Restoration Simplifies the Insurance Process
We do more than restore your home—we help you navigate the insurance claim process efficiently.
- ✔ Insurance Guidance – We help you understand your policy and work with your provider.
- ✔ Accurate Damage Assessments – Our detailed reports ensure insurers get a clear picture of the restoration costs.
- ✔ Seamless Communication – We keep you informed every step of the way.
When Should You File a Claim?
Filing a claim makes sense when:
- The damage exceeds your deductible by a significant margin.
- You’ve had fewer than three claims in the past three years.
- Paying out of pocket would create financial strain.
Still unsure? Call Share Restoration today for expert advice tailored to your situation.
Don’t Let Fear Keep You from Protecting Your Home
Insurance exists to help during unexpected events like water damage. With Share Restoration, you have an experienced team on your side to ensure your home is restored properly and affordably.
💧 Need help filing a water damage claim? Contact Share Restoration today.