Let’s talk about something that needs to be said — property insurance is not a maintenance plan.

We’ve all been at that family picnic where slick Uncle Tommy brags about how he “got the insurance company to pay” for a roof that should’ve been replaced ten years ago. And maybe you’ve heard enough of those stories to start believing that’s how it works.

But here’s the truth: insurance is for sudden, accidental losses — not long-overdue repairs or neglect. And that myth about “getting one over on the insurance company”? That’s not just untrue — it’s costing everyone money.

(Also, if Uncle Tommy’s giving out financial advice between hot dogs and conspiracy theories… maybe take it with a grain of salt — and some antacid.)

Insurance Fraud and the Ripple Effect

According to the Coalition Against Insurance Fraud, insurance fraud costs the U.S. about $308.6 billion annually. The FBI says this behavior raises the average family’s premiums by $400 to $700 annually.

So when folks file sketchy claims for things that could’ve been avoided with basic upkeep, everyone else ends up footing the bill.

Your Claims History Isn’t a Secret

One thing a lot of people don’t realize? Insurance companies talk to each other.

Anytime you file a claim, the details go into databases like CLUE (Comprehensive Loss Underwriting Exchange) or A-PLUS. That means your history goes with you when you shop for a new policy, like that friend who always brings up your college stories.

Here’s what they can see:

How many claims have you filed?

What caused the damage

How much was paid out

Whether it was preventable

That info sticks around for 5–7 years and can seriously impact your ability to get good coverage at a fair price.

Why Premiums Keep Going Up

Let’s be real — rates are rising, not just because companies feel like it. There are some legit reasons behind it:

Rising Construction Costs – Lumber, shingles, HVAC units, labor… all more expensive than ever.

Natural Disasters – In 2023 alone, the U.S. recorded 28 billion-dollar weather events. That’s the most in a year, totaling over $92.9 billion in damages. More disasters = more claims = higher premiums.

Too Many Preventable Claims—Old roofs, leaky plumbing, worn-out systems are showing up in claims that should’ve been handled with regular maintenance.

(Kind of like that cousin who never brings anything to the potluck but takes home all the leftovers. Someone’s always picking up the tab.)

Don’t End Up in the High-Risk Pool

Here’s the part most people don’t hear until it’s too late:

If you file too many claims — especially preventable ones — your insurance company might non-renew your policy. At that point, you get pushed into the Excess & Surplus Lines (E&S) market.

And trust me, it’s not a fun place to be:

Much higher premiums (sometimes 2–3x more)

Limited coverage with tons of exclusions

Big deductibles

Fewer companies are willing to work with you.

Once you’re there, getting back into the standard market can take years — and a squeaky-clean record.

Take Pride in Ownership

Your home is probably the most significant investment you’ll ever make. Taking care of it isn’t just responsible — it’s part of protecting your future.

Insurance is there for the fire, the storm, the unexpected disaster. Not for that 25-year-old roof that’s finally had enough or the faucet that’s been dripping since Thanksgiving.

Final Thoughts

I’m sorry if someone told you otherwise — maybe even Uncle Tommy. Here’s what you need to know:

✔️ Insurance companies can see your full claim history

✔️ Maintenance claims are usually denied

✔️ Too many claims can knock you out of the standard market

✔️ And we all pay the price when the system gets abused

Take care of your property. File when it truly matters. Keep your insurance record clean because that record follows you everywhere.