Insurance exists for the losses you cannot absorb. Using it for the ones you can has a cost that does not show up until renewal.
Always file
- Anyone is injured, even slightly. Injuries develop; a claim protects you.
- Another person or their property is involved. Reporting is often required by the policy.
- Theft, fire, or anything with a police report.
- Water damage of any size. What looks like a $1,500 drywall repair can be a $20,000 mold remediation.
Think first
A single-car scrape on a garage post, a cracked fence panel, a stolen bike: if the repair is within a few hundred dollars of your deductible, filing may recover very little now and cost more later. Most carriers apply a claim surcharge for three years, and some remove claims-free discounts for five.
A simple test
Estimate the repair. Subtract your deductible. If what is left is less than roughly a year's premium, paying it yourself is usually the better decision. If it is more — or if there is any injury or any other party — file.
Ask before you file
Calling your advisor to ask "should I file this?" is not a claim and does not go on your record. Calling the carrier's claims line to "just ask" often does; many carriers record an inquiry as a zero-paid claim. Ask the advisor first.