When is it worth filling insurance claim?

Question

There was a storm that damaged the siding of my rental property. I received a couple estimates between $2600-$3500. My tenant just mentioned a leak as well that may be due to the damage. My deductible is $2000. Is it worth it to file an insurance claim? I've read that following claims can increase my premium, so not sure it's worth it. Would appreciate any advice! Thanks

William Sing · Answer

Hey @Julie M. 👋

You're smart to pause and think this through—it’s definitely one of those gray areas.

With repair estimates between $2,600 and $3,500 and a $2,000 deductible, you’d only be getting $600 to $1,500 back. Not a huge win, and insurance companies can raise your premium even for smaller claims. Some also track claim frequency, which can impact your ability to get good coverage later on.

That said, the leak is worth paying close attention to. If it’s related to the storm damage and has the potential to cause bigger issues (like water damage or mold), filing might make more sense. I’d have someone check it out ASAP and document everything.

Also—if you haven’t already—talk to an insurance broker, not the claims department. A good broker can give you an honest take on how a claim might impact your future rates or insurability based on your specific policy.

If the damage ends up being minor and won’t cause bigger problems, you might be better off paying out-of-pocket and keeping your claim history clean.

Hope that helps—keep us posted on what you decide!

Payton Haight · Answer

I am sorry to hear about the damage to your property. If you can cover it, I would not file a claim for roughly $3k in damage with a $2k deductible. It will likely increase your premium, though hard to say exactly how much - Insurance premiums have been increasing significantly the past few years even without submitting claims. If there ends up being significantly more damage, it may be worth it to file a claim. Personally, I like to keep slightly higher reserves with a higher deductible and only plan to file claims in cases of large/catastrophic losses. Of course, that is not always an option and if you need to use your insurance that is why you have it! Hope the cost for the damages turns out on the lower ends of that estimate for you.

When is it worth filling insurance claim?

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