Homeowners purchasing coverage usually balance the need for adequate coverage with a desire for an affordable premium. Sometimes, policyholders pay more for their policies to know that they can have adequate support on demand should anything happen to their home. They keep their deductibles as low as possible to avoid financial hardship should they ever need to file a claim.
Many people intentionally set money aside in savings to ensure that they can cover the deductible on their policy if they ever find themselves dealing with significant damage to their homes. People sometimes choose to pay more to keep their homeowners insurance deductibles manageable.
Unfortunately, insurance professionals are often eager to do whatever they can to pass costs back to policyholders during sizable claims. They may try to demand that the policyholder pay more because the deductible has changed to reflect the scope of the claim. Do homeowners have to pay a higher deductible if it changes mid-claim?
The deductible is set for the duration of the policy
Attempting to alter coverage rules during a policy is a complex matter. Typically, both parties need to agree to those changes in writing. Most of the time, such changes only occur when a policyholder renews for the year. Otherwise, they have to accept the proposed changes in their coverage.
The deductible set at the time of purchase should remain in effect for the duration of the policy regardless of the number of claims or their overall value. Typically, homeowners’ insurance coverage lasts for one year. Unless the claim occurs right around the annual renewal date, the deductible shouldn’t change during the claim. However, the cost of maintaining the same coverage and deductible could increase at renewal time because of the large claim.
Attempts to pass claims costs back to policyholders can be an example of bad faith insurance practices. Companies may count on people being unaware of their rights and agreeing to inappropriate demands. When insurance companies delay large claims, deny reasonable requests or otherwise try to avoid their responsibility to policyholders, the people making claims may need support.
Negotiating a sizable homeowners’ insurance claim or holding a company responsible for bad faith insurance practices may require patience and proper support. Policyholders shouldn’t have to fight to get coverage, but when they do, they usually want someone in their corner to help the