5 Things insureds should know about canceling a home insurance claim

Some common reasons for not filing or canceling an insurance claim include:

• Repairing the damage will cost less than your home insurance deductible. If your deductible is above the cost of the repair, it makes more sense to pay for the repair out of pocket. It not only saves money but also prevents a claim from raising your insurance premium.
• Your premium is already high. When your insurer handles a claim, whether it's approved or denied, that information goes onto your Comprehensive Loss Underwriting Exchange, or CLUE, report. This report is used by insurance companies to set your insurance rates. If you want to prevent further premium increases, it might make sense to avoid the claim and pay for the repair yourself.
• The repair can be done by you. If the damage is small and you or your partner have DIY skills, it might be more cost-effective to simply repair the damage yourself.
• You're nervous about a non-renewal. Filing multiple claims can result in being dropped by your insurer if they deem your property to be high risk. If you've filed multiple claims in the recent past, it's sometimes best to avoid filing another.
• Your issue isn't covered. Read your policy to make sure your claim is actually covered by your insurance. Some issues, like mold and leaks, aren't covered by many policies.
• You're getting a claims-free discount. If you haven't filed a claim with your insurer recently, you might be benefiting from a claims-free discount on your premium. If filing a claim isn't as important as maintaining the discount for you, it might make sense to handle the repair without involving insurance.

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