Understand Water Damage Insurance Claims in Texas

Water damage insurance protects the policy holder's home in the event of flooding or other similar events. This policy is great for those who live in areas that are susceptible to flooding.

Filing water damage insurance claims can be a complicated process. The policy holder must consider whether the claim will be more expensive in the long-term before he/she files one for the company. You should check over here to hire an attorney experienced with water damage home insurance claim disputes.

water damage insurance claim

Following are the considerations you should make before filing  water damage insurance claim in Texas:

  • Will filing a claim to water damage insurance cost more in the long-term?

Water damage insurance companies review the information and draw a conclusion. Within a few weeks, mold damages will be claimed by policyholders. 

They may raise premiums to cover the additional water damage claim. This premium increase can add up to a lot more than the policy holder actually received. But this isn't all. Water damage insurance policies may be cancelled by some insurance companies.

  • How does the policy holder decide if he/she should make a claim?

The policyholder must know how much it will cost to repair the damage. This is the amount the insurance company must provide as per the policy. It may be more practical for the homeowner to cover the costs of the repairs if the amount is less than the insurance company requires. 

Although this may seem counter-intuitive, it's the best option, especially if the repair cost is less than the insurance deductible. There is no reason for the policy holder to file a claim in this instance. He/she increases the likelihood that their insurance company will raise red flags, and they will pay a higher premium.

  • Can we make small claims?

Multiple small claims can be worse than one big one. Insurance companies are more likely to increase their premiums if they receive a lot of claims. Every claim is automatically recorded in a national database. 

The national database will be used by the new company to reference any policyholder who decides not to renew his insurance contract with an insurance company. They may request a higher premium because they can see all the claims that have been filed.

These are some of the things you should consider when filing for water damage claims in Texas.