How Winter Storms Can Affect Homeowners Insurance Claims

February 1st, 2016 by Simply Justice

Thousands of victims of the recent Winter Storm Jonas either have filed or are considering filing homeowners insurance claims to cover the costs of repairing their damaged homes. However, a recent Forbes report shows that filing a homeowners insurance claim may ending costing policy holders more than they expected. While the proceeds for a claim can help ease the costs of repairs, the act of filing a claim can lead to higher premiums, higher deductibles, and reduced protections.

Homeowners Insurance Claims Boost Premium Payments

With thousands of residents across ten states ready to file homeowners insurance claims for winter storm damages, insurance providers are expected to pay up to $1 billion or more to cover the costs of the claims. Since the objective of an insurance provider, as with any other business, is to make a profit, the carriers must develop ways to cover the losses from so many homeowners insurance claims. Homeowners that file claims today can expect much higher premiums on their next policy, which will allow insurers to recover some of their losses.

Homeowners Insurance Claims and Deductibles

The Forbes report also recommends that policy holders understand their deductible costs before filing a homeowners insurance claim. The deductible amount, as outlined in the policy, specifies the amount the policy holder must pay before the insurance provider honors a claim. In some instances, the deductible amount can be so high that it makes filing a homeowners insurance claim less cost-effective than paying out of pocket. These high deductibles also protect the insurance provider from high claims payouts.

Homeowners Insurance Claims and Payout Limits

Another aspect of homeowners insurance claims that some policy holders fail to understand comes from language within the policy that outlines payout limits. For catastrophic damages, such as roof damage, the policy will often cover much of the amount listed in the homeowners insurance claim, less the deductible. For small damages, such as leaking pipes, or damages to personal items, the policy outlines some specific limits on payout amounts. These limits make it less cost-effective for policy holders to file claims, which also saves money, time and effort for the carrier.

When Insurers Deny Homeowners Insurance Claims

In some instances, the carrier will either underpay or deny a legitimate homeowners insurance claim. The carrier may attempt to justify the underpayment or denial, or they may not give the policy holder a reason. When a policy holder believes that the insurer is acting in bad faith when denying a homeowners insurance claim, that homeowner can seek legal advice on how to proceed.

Source: Forbes

Get Answers For Your Homeowners Insurance Claim Lawsuit Questions

To find out how we can answer your questions about a homeowners insurance claim lawsuit, contact one of our attorneys today. Our intake team will take down the details of your case and quickly connect you to an attorney who understands how to get the most from your homeowners insurance claim lawsuit. You can also fill out the “Confidential Evaluation” form at the top of this page.

NOTE: This blog post is a news story and does not imply an endorsement of Arguello, Hope and Associates by any of the parties mentioned herein.

Comments are closed.