FAQ: Can filing a homeowners claim be a bad idea?

This came from a reader and you can read it here.

Answer: Yes. If you have a low deductible, you may think you should file smaller claims. However, as discussed in this article from United Policyholders, there is a phenomenon known as "use it and lose it." Basically, if you file a claim, your homeowners insurance may cancel you. So, yes, it can be a bad idea to file a claim, especially a smaller claim.

Comments

[Nichole]

I bought a house 2 months ago, got insurance at the time of purchase. They were aware that we had a wood shingle roof. We are in the process of replacing it. They already canceled us and say we have to have it done by the end of the month to have it reinstated.

If they already knew what kind of roof we had how can they cancel us?