Any insurance agent, or attorney for that matter, worth his or her salt, will tell you premium prices are all about risk. Because insurance companies base their rates on actuarial tables, which take into account a number of factors, your premiums are set according to how much risk you present.
For the average homeowner, even renter, that means anything which is a potential risk is going to increase the amount you pay every month. Most people know this and do everything they can to avoid filing a claim, because that, as it’s well understood, will hike rates. However, it’s what isn’t commonly known which surprises most people.
Understanding How Surety Companies Operate
When you file an insurance claim, every surety company knows about it, no matter what your claim is related to, be it car damage or homeowners. These recording programs are called CLUE and A-PLUS, or Claim Loss Underwriting Exchange and Automated Property Loss Underwriting System. Both keep track of every claim filed in the country.
Unfortunately, the decision about whether to file a claim is rarely so simple. In some cases, making a claim may cause an insurance company to raise your rates. In other instances, the decision to file a claim could put your name into a database that makes it difficult to get or maintain coverage in the future. — Bankrate.com
If you are one of the many consumers unfortunate enough to need to file a claim, what comes next is more than just dealing with some uncaring call center. You’re quite likely not only to experience a substantial wait (read: stall tactic) before your claim is paid, you’ll also be put on the higher-risk list. It’s pretty straightforward, the more claims you file, the bigger a risk you are. People than file even a little as one or two claims over a ten or twenty year period either see their premiums skyrocket or are outright cancelled.
Schedule Junk Removal before You Need to File a Homeowner’s Insurance Claim
So, that pile of junk in your yard or stacked in your garage may be more than a to-do list eyesore, it’s ground zero for higher homeowner’s insurance premiums. What’s even worse is if you do have to file a claim because the kid from next door came over to play, only to slip-and-fall or break a leg on your property, tripping over that junk garbage, you might not be able to get insurance after the dust settles.
Do yourself a favor, clear that stuff out now and save yourself the time, frustration, and expense of having to deal with the aftermath of an insurance claim. The longer you wait, the greater the chances are something will go awry, and you’ll be the one that’s ultimately to blame, so go ahead and avoid homeowners insurance hikes with Junk Removal.
