Getting condo insurance is the right thing to do when you're trying to protect your home and your assets, including your garden, even if it is a small sized garden. Although many people think that this kind of coverage is a just-in-case type of thing, it's actually coverage that gets used more often then you think. Lots of condo owners have to make claims on their insurance policies each year, and it's these very important policies that keep a lot of owners from losing their homes and going into debt.

Sometimes, claims on your condo insurance are just going to be inevitable. Things can happen that are beyond your control, and there is nothing you can do to stop them. As this is so, you'll need to be prepared to make a claim at any time and be aware of what effect a claim can have on your premiums. Although it doesn't always happen, making a claim on your policy could actually cause your premiums to go up when it's time to renew your policy or shop for a new one. Keep this in mind whenever you are deciding whether or not to make a claim on your policy.

How Claims Affect Premiums

If you have to make a claim on your insurance policy, that means your provider is most likely going to have to pay out on your behalf. Oftentimes, claims can cost a lot of money for your provider, so that means they are essentially going to be losing quite a bit. It's unlikely that in every case you're going to have paid enough money in to cover the cost of the payout your provider has to make. Because of losses like this, making claims does have the ability to increase your premiums.

When your company does have to payout these amounts to your for claims, they're going to need to find some way to recoup a portion of what they have lost. The easiest way to do this is to increase your individual rates when it's time for your policy to get renewed. The rationale behind this is that you are now a greater risk than you were before. Statistics indicate that those who file a claim once are likely to do it again, so insurance companies have to do what they can to protect their interests. Raising rates is what they can do.

Not all companies will raise your rates after you have made a claim. This is something that is just a possibility in most cases. Some companies will be totally honest about their intentions, though, and they will lay out a policy for dealing with this in your insurance documents. If you want to know how your company will deal with a claim, then you need to check and see what your policy has to say about it. You may be able to find detailed information about how these things will be handled, and you can use this knowledge how you see fit.

Dealing with Increased Rates

If you make a condo insurance claim and your premiums do increase, then you may want to start looking around for another provider. Not all provider will look at claims in the same way, so you may be able to find one who will not charge you higher rates for your coverage. You might also just want to look for some other ways to save on your insurance coverage. If you can get some other discounts, this may be a way to offset some of the increased costs.

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