Should You File That Insurance Claim? Sometimes the Answer Is No!

By Tricia Zwirner

You’ve paid your insurance premiums faithfully for years. Then one day, something happens. A tree limb damages your roof, a pipe leaks and ruins your flooring, or you accidentally back into something with your car.

Your first thought might be, “Well, that’s why I have insurance!”

And you’re absolutely right. But here’s something that might surprise you: Just because you can file an insurance claim doesn’t always mean you should.

Insurance Isn’t Necessarily for Every Little Mishap

Insurance is designed to protect you from financial losses that could be difficult to absorb on your own. While policies cover many types of damage, using your insurance for every relatively minor incident may not always be the best financial decision.

Let’s say a windstorm damages a section of your roof. The repair estimate is $2,000, and your homeowners’ deductible is $1,000.

If the damage is covered, your insurance company would generally pay $1,000 after your deductible.

Sounds reasonable, right?

But here’s where things get interesting.

Depending on your insurance company, claims history, and other factors, filing that claim could affect your future premiums or even your eligibility for certain insurance programs.

Suddenly that $1,000 reimbursement might not look quite as appealing.

Your Claims History Matters

Many people don’t realize that insurance companies consider claims history when determining rates and eligibility for coverage.

While one claim doesn’t automatically mean your premium will increase, multiple claims within a relatively short period can raise concerns for insurers.

And here’s another surprise: Claims history can follow you when you shop for insurance with another company.

Insurers may use databases that report prior claims, meaning changing companies doesn’t necessarily give you a clean slate.

This doesn’t mean you should be afraid to use your insurance. Far from it! It simply means understanding the potential consequences before making a decision.

A Little Maine Perspective

Living in the Sebago Lakes Region, we’re no strangers to unpredictable weather. Between winter ice storms, heavy snow, falling trees, and the occasional windstorm that seems determined to rearrange our yards, there’s no shortage of opportunities for unexpected damage. 

Imagine waking up after a storm to discover a large branch resting on your roof. Before assuming you need to file a claim, take a moment to assess the situation.

Is there actual damage to the roof, or does the branch simply need to be removed? Is the damage minor, or could there be structural problems that aren’t immediately visible?

These distinctions matter. Depending on your policy and the circumstances, debris removal may be covered, limited, or excluded.

And remember, what initially looks like a small repair can sometimes turn into something much more significant. When in doubt, have the damage evaluated by a qualified professional before making a financial decision.

When Does Filing a Claim Make Sense?

If a major storm causes $40,000 of damage to your home, that’s exactly the type of financial loss insurance is intended to help protect against.

The same goes for a serious automobile accident, a house fire, or a significant liability claim.

But what about a $1,500 repair when you have a $1,000 deductible?

That’s when it’s worth considering whether paying out of pocket might make more sense.

Of course, every situation is different. Your financial circumstances, the nature of the damage, and your insurance policy all play a role.

One important exception: If someone is injured, another person’s property is damaged, or there’s a possibility of a liability claim, don’t assume it’s better to handle the situation yourself. Prompt reporting may be required under your policy, and delaying could complicate matters.

What About Calling Your Insurance Agent?

Here’s where I think having a local insurance agent really makes a difference.

Before deciding how to proceed, it’s helpful to understand your deductible, what your policy covers, and what factors could affect your insurance going forward.

A knowledgeable agent can explain your options and help you make an informed decision.

Keep in mind that contacting your insurance company about damage may result in a claim being opened, even if no payment is ultimately made. It’s worth understanding how your insurer handles inquiries and claim reporting.

The Bottom Line

Insurance is one of those things we hope we never need but are incredibly grateful to have when something serious happens.

The goal isn’t to avoid filing claims. It’s to use your coverage wisely.

Sometimes filing a claim is absolutely the right decision. Other times, handling a smaller expense yourself may make better financial sense.

The important thing is understanding the difference.

And remember, the cheapest insurance policy isn’t necessarily the best one. Having the right coverage—and someone you trust to help you understand it – can make all the difference when the unexpected happens. Tricia Zwirner is a State Farm agent in Windham. She and her team would love to hear from you and can be reached via phone and text at 207-892-2864 or via email at [email protected] <