Minor damage to a home may seem costly but be careful when you do decide to file for claims. WHY? Well as it turns out, you may just be jacking up your own risk factor hence the amount you pay for your home’s insurance policy. Most homeowners would contradict this but say you live in a high tornado risk area like Tornado Alley, and your home gets wrecked once every few years yet stubbornly fail to consider relocation. Most will relocate and rebuild their home somewhere else but for some, there’s no place like home and they stay put to again face the gauntlet. This is a good example of driving up your home insurance costs for the higher the risk factor your home is in, the more the insurance company would ask for a policy.
This is what happened when Katrina struck with many insurance firms either rescinding policies undeclared or opting not to renew policies as they expire for the risks to them are simply too great and that the same even can happen year after year. Consider a rebuild at least once and take into consideration the trauma you suffer from such an event. It is good to rebuild but with today’s recession, that may not be an option.
