1.  If I have a claim, will I be able to pay for the deductible?

2.  What is the savings on a higher deductible and how long will it take to recoup the cost if I have a claim.  For example, if going from a $500 deductible to a $1000 deductible saves $100 per year on your insurance, then it would take 5 claim free years to recoup the cost of having to pay a higher deductible.  However, there are other costs to consider when filing a claim…

3.  If you file a claim with your insurance company will they raise your rates (surcharge)?  Or worse, cancel your policy for claim activity?

4.  Excessively filing claims may (and probably will) cause your rates to go up and eventually get your insurance policy cancelled.

You will probably make the best decision on deductibles when you consider that you are buying insurance not a warranty.  Insurance is designed to help you recover/pay for unexpected events/damage and not maintenance issues.  A warranty is more designed for maintenance issues.  It may seem like symantics, but its important to the insurance company and therefore important to you because your policy is a contract between you and your insurance company.  A home requires regular maintenance like fixing leaky faucets, replacing the screen on the screen door, and replacing a worn out roof.  These are not insurance claim items, but maintenance items.  However, if a tree is blown over by the wind and damages the roof, then that is an insurance item.

Finally, considering the above insurance claim situation, should you file the claim.  If a tree falls on your roof and causes $1200 worth of damage.  Assuming you have a $1000 deductible, should you file a claim?  If its a covered loss, the insurance company is obligated by contract (policy) to pay the $200 over the deductible… so should you turn in the claim?  You may want to review items 3 and 4 above.  Yes, the insurance company will pay you the $200, but it may cost you more in the long run if the insurance company surcharges your policy.  Even five “small” claims are still claims and looked at closely by insurance companies.