This is probably not a blog entry that everyone will enjoy, but it is important.
Insurance companies reward customers with good credit, no claims, well-maintained homes and solid account relationships. The reward? Better insurance premiums that cover catastrophic unforeseen events. If you have not had a home claim in several years, you are probably getting a $250 to $300 per year credit on your homeowners insurance premium.
The truth is that when you have to put in a home claim it should be significant enough to be much more that your deductible . Because at your next homeowner policy’s renewal date you will probably lose that discount for about three years. It may not seem fair, but this is normal business practice in today’s insurance world. The contract that you have with your insurance carrier demands that you appropriately maintain your home in good condition and in a timely and consistent manner. If you do this, the companies know that the likelihood of you having frequent claims will be minimized. Obviously, if you maintain your home well, you will enjoy the benefits of a really nice home that has no, or very few, problems. Which is nice. And, even nicer will be the fact that you are paying lower premiums than your neighbors. Because you’ve earned it.