One of the most common objections homeowners might encounter is the fear of filing an insurance claim due to the concern of increased insurance rates. This hesitation can often lead to delays in addressing critical water damage issues in homes. In this blog post, we will delve into the math and reasoning behind why filing an insurance claim for water damage restoration might actually be a wise decision.
Understanding the Concern:
Many homeowners express reluctance in filing insurance claims for water damage restoration due to the misconception that their insurance rates will significantly increase. However, based on research and insights from insurance agents, it is essential to debunk this myth and look at the facts objectively.
Debunking the Myth:
Contrary to popular belief, filing an insurance claim for water damage restoration may not lead to a substantial increase in insurance premiums. According to industry data and research, the average premium increase after filing a claim ranges from 5% to 10%. For the sake of our discussion, let’s consider a 9% premium increase post-claim filing.
The Math Behind It:
Let’s break down the numbers to understand the impact of filing an insurance claim for water damage restoration. Suppose the average annual premium is $1,500, and filing a claim results in a 9% increase, translating to an additional $135 per year. Over a period of five years, this amounts to an extra $675 in premiums.
Comparing Costs:
When faced with a water damage situation that requires restoration, homeowners often have to decide between paying out of pocket or filing an insurance claim. Considering that the average water damage claim amounts to $11,650, it may make financial sense to opt for the insurance claim route.
Final Thoughts:
In conclusion, the decision to file an insurance claim for water damage restoration should be based on a careful evaluation of the costs and benefits involved. By understanding the math behind insurance premiums and claims, homeowners can make informed decisions that prioritize their financial interests while ensuring timely and effective restoration of their property.
Key Takeaways:
- Filing an insurance claim for water damage restoration may not lead to significant premium increases.
- The average premium increase post-claim filing is around 9% for a period of 3 to 5 years.
- Considering the costs involved, it may be financially prudent to opt for an insurance claim for water damage restoration.
By addressing the concerns and providing clarity on the financial implications, homeowners to make informed decisions that prioritize the restoration and protection of their properties.