Why Making A Small Home Insurance Claim Might Actually Cost You More

We all know insurers can be friendly when selling us their policies, but can then cut up rough when we actually have to make a claim. There are many issues to consider about whether to make a claim at all, and if so, how to go about it.

Should I claim?

The first thing to take into account is the amount of your deductible (the initial amount that is excluded from each claim by your insurer). Your claim should at least exceed that amount, or you won’t get anything at all. Also, bear in mind that each time you make a claim, your premiums will increase, so you need to decide if the claim is worth it. What’s more, if you have too many claims over 2 or 3 years, for whatever amount, you may lose your insurance altogether, and it will be difficult to replace it elsewhere. It really may be worth therefore skipping small and multiple claims and covering the costs yourself in some instances. If the incident involves a personal injury claim against you however, you should always make a claim, as the potential damages can be substantial.

How to make a claim

If you do decide to make a claim, then you should do it as soon as possible. If it involved theft or any criminality you should first contact the police and obtain a crime reference number. You can then contact the insurers by phone and give them details of that number and of the incident. They can arrange emergency funds for alternative accommodation if necessary, and appoint a loss adjuster to assess the claim. You should obtain 2 or 3 quotes for any repair or replacement work and send these to them. It’s always better to slightly overestimate rather than under estimate your claim.

Contents claims

Although the insurers may have a look around your property when you first take out insurance, they will only have an idea of overall value, not what you actually own. It’s likely you will have to prove the existence and value of everything you claim for. Taking an inventory of all your contents is a vital step, and you should try and keep this updated. Keeping receipts is also crucial and even photographs can be useful instead. Some insurers are more flexible than others, but the more evidence you can provide, the more smoothly your claim will go.