When we buy insurance of any kind there is a premium/cost to us as consumers. All we really ask in return is that the company providing the coverage do their part when there is a claim. And for the most part insurance carriers do a pretty good job handling claims (in my opinion) overall.
But what is often not understood is the repercussion of filing multiple homeowner claims.
In Arizona, insurance carriers commonly non-renew Arizona home insurance policies that have two (2) or more claims within a 5 year period.
One simple piece of advice can save you alot of grief.
Carry a high deductible on your home insurance policy and avoid the temptation of filing a small claim. One person reportedly had a water claim a few years back. Then, a couple years later believed they had been the victim of a theft and called the insurance carrier only to discover the item missing was not missing afterall.
Even though this person tried to cancel their "theft" claim it was too late. The insurance carrier already had reported it to the claims loss underwriting exchange. Now for the world to see they had two claims on their record.
The result? The client was non-renewed for having two claims within a 5 year period. When they shop for new home insurance the rate will likely be substantially more due to their claims history.
Be careful filing small claims. And be especially careful filing two home insurance claims within a 5 year period.
Arizona Homeowner Insurance