🚫 When Not to Go Through Homeowners Insurance

Homeowners insurance is designed to be your safety net when disaster strikes—but that doesn’t mean you should use it for every little mishap. In fact, there are times when filing a claim could do more harm than good.

At Eugene C. Yates Insurance Agency, we believe in helping Sacramento homeowners make smart, informed choices. Here’s a look at situations where you might want to think twice before going through your insurance.

💰 1. When the Damage Costs Less Than Your Deductible

This is the most straightforward reason to skip the claim. If your repair costs are less than (or barely above) your deductible, you’ll end up paying out of pocket either way—and still risk a rate hike.

Example:
Your deductible is $1,000. A burst pipe causes $1,200 in damage. Filing a claim could get you only $200 back, and put a mark on your claims history.

Smart move: Pay out of pocket and avoid a future premium increase.

📈 2. When It Could Raise Your Premium

Insurance companies may increase your premium after a claim—especially if:

• The damage could’ve been prevented (e.g., roof leaks due to lack of maintenance)
• The claim is for liability issues (like someone getting hurt on your property)
• You’ve filed previous claims in the last few years

Over time, these premium hikes can cost more than the claim was worth.

🚫 3. If the Damage Isn’t Covered

Not every mishap is covered by your homeowners policy. Filing a claim for excluded damage can still show up on your record—even though it’s denied.

Examples of non-covered incidents:

• Flood damage (needs separate flood insurance)
• Earthquake damage (not covered without an earthquake rider)
• Termite damage or mold from poor ventilation
• Wear and tear from age or lack of maintenance

Tip: Always check with your agent before filing.

⏳ 4. If You’ve Filed Claims Recently

Even if your claims were legitimate, filing too many in a short span can flag you as “high risk” to insurers. That could mean:

• Higher premiums
• Policy cancellation or non-renewal
• Difficulty finding a new provider

Rule of thumb: Avoid more than 1 claim every 3–5 years if possible.

🎨 5. For Minor Cosmetic Damage

Not all damage affects the safety or structure of your home. Small cosmetic issues like:

• A cracked tile
• A dented garage door
• Minor scratches or scuffs

…can be repaired relatively cheaply and might not be worth reporting.

🛡️ When Should You Use Insurance?

While these are times to skip a claim, you should always use your insurance when:

• The damage is severe and costly
• There’s a fire, major theft, or total loss
• Someone is injured on your property
• You’d struggle to pay for repairs out of pocket

🤝 Talk to an Agent Before You File a Claim

At Eugene C. Yates Insurance Agency, we’re here to help you protect your home—and your financial future. Not sure whether to file a claim? Call us first. We’ll:

✅ Review your coverage
✅ Explain the pros and cons
✅ Help you decide if filing makes sense

📞 Call us today or request a free policy review online.
Smart insurance is more than a policy—it’s a plan.