Faith and Finance

www.RyanHanley.com – Ryan defines the insurance term Actual Cash Value, which is often found on homeowners insurance policy.

Question by  : If I put in a claim for homeowners insurance to cover goods, will my insurance go up or be revoked?
We had flooding in our basement and my washer was damaged and we decided to get a new one rather than repair it. With all the stories floating around about hurricane victims (and other homeowners) having their insurance revoked or having their rates go up astronomically for small claims I got scared. I didn’t want this to happen to me. Would you have put in the claim for the washer? Are these stories true?

Best answer:

Answer by mbrcatz17
Do you have a flood policy? Your flood policy will NOT go up or be revoked for putting in a claim. Your HOMEOWNERS policy does NOT cover flood damage. Water running into the house from outside, such as groundwater, is considered flood.

I would NOT put in a flood claim on your homeowners policy; a water claim puts a red flag on your account, because water damage leads to . . . MOLD!!! So even though it’s not covered, it’s NOT worth it. I have no idea what your washer is worth, but I bought mine for about $ 500 – same as the deductible on my policy, so that’s a wash. Pun fully intended. Sorry. Slow day.

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