To Claim or Not to Claim-
That is the Question
Why do you have insurance? Insurance is
There are several pieces to the claim puzzle that must come together before a carrier will pay out a claim. It is in your best interest to know those pieces before you make the decision to file a claim. If you don't have all of the claim puzzle pieces, your claim will not pay out. Now, you can complain and switch carriers, but chances are, it won't be any different with the next carrier. Insurance is one of the most regulated industries out there. They cannot just decide what they will and will not cover. There are rules they have to adhere to (or pay the legal consequences). And whether you know the rules or not, you are subject to them as much as the carriers are. Here is what you need to know before you file a claim:
1. Is it a covered
loss? Different types of home insurance policies cover different perils.
Basic form policies cover
fire/lightning, windstorm/hail, explosion, riots, aircraft, vehicles, smoke,
vandalism and theft.
Broad form policies cover
all of the basic perils, plus
falling objects, weight of ice/snow, accidental discharge of water,
cracking/burning, collapse, freezing and sudden electric current.
Special form policies cover every
peril except what is specifically
excluded.
What type of policy do you have? If you do not know, contact your
agent.
This is good information you want to know.
2. What type of deductibles
do you have? There are many options!
The deductible is the amount you will pay
before your carrier will pay out the remainder of your claim amount. Your home
insurance policy most likely has a deductible that is a percentage of your
dwelling value(the cost to rebuild your home in the case of a total loss).
Common deductibles are 1% or 2%, but you can go higher. Your home policy can
have a flat rate deductible instead, but these are not very common and can cost
more if they are low. The lower your deductible is, the higher your
premium will be. There is one deductible for your wind/hail claims and a
different one for everything else (All Other Peril (AOP)). For example, if your
dwelling value is $250,000 and you have a 1% deductible, you will pay the first
$2,500 of any claim.
3. Is it worth it to file
that claim?
Before you file a claim,
you want to have a certified contractor come, survey your damage and give you
an estimate of the cost of repairs. If you have repairs in a lower amount than
your deductible, it makes no sense to file a claim. You will not receive any
benefit from the carrier and your rates will go up at your next renewal because
you filed a claim. For example, if you have a tree hit your house and it just
damages a piece of your roof, chances are it will not cost $2,500 to repair a
section of the roof. You would not file a claim. On the other hand, if you have
a fire and your entire kitchen has to be rebuilt, it will most likely cost more
than $2,500. In this case, you want to file the claim. You will pay only
$2,500 for repairs that could possibly cost more than $10,000. There is quite a bit more that goes into if or how a claim is paid out. There are too many scenarios of what is and is not covered for me to try to explain the particulars here. Plus, I am not a licensed claims adjuster so I am not the expert on your claim. Each claim, with each policy, with each carrier will be handled separately (and differently). But when you are deciding whether or not to file a claim, examine the three 3 things I’ve explained before you even consider calling the carrier. I would call your agent first if you are unsure. Many carriers will file the claim after talking to you; even if you just called with an inquiry and never said the words, "I need to file a claim." But if you have done your homework and you are going in with your eyes open, then your chances for a beneficial outcome increase!
There are
three ways to request a quote for your insurance needs:
* Call Brockman
Premier Insurance at 877-987-8683
No comments:
Post a Comment