Many homeowners often struggle with the question of whether or not to file an insurance claim. Some questions often asked,
1-Will my claim be covered?
2-How much is my deductible?
3-How much will this cost if they deny coverage?
4-How long will a claim stay on my file?
5-Who do I call to ask questions?
When it comes to insurance coverage, all questions are fair game.
Each insurance carrier operates a bit differently and even within an agency you may get varying responses.
Knowing how your policy reads and what is covered will go a long way to answering some of the basic questions you may have.
DO YOU KNOW WHAT’S IN YOUR POLICY?
Many people do not and often call the claims department to ask general questions. What many may not know is this phone call to inquire may actually result in an unpaid claim on your record. If you have questions regarding coverage, we recommend you reach out to your agent first to ask general questions and also call a specialized professional of your choosing, to provide a consultation.
Calls directly to the claims department or calls made in haste may also result in services being provided by a contractor of their choosing, known as preferred providers. While being a preferred provider for an insurance carrier is in not an indication of workmanship, knowing that these providers often agree to a lower rate typically for higher volume may mean you sacrifice other services. You as the property owner have the right to choose the contractor of your choosing so long as they are appropriately credentialed and licensed. Stay informed and knowledgeable.
Secondly, knowing how much your deductible is will help you better assess whether or not to file a claim. It seems straight forward but time after time we see claims filed prematurely. The homeowner files and then finds out their deductible is much higher than what they initially thought. For example if your estimated damage is $4,000 but your deductible is $6,000 there would be no monetary benefit to filing a claim. Another example is when your deductible is $1500 but the damage is $2,000. Would filing a claim be worth it-you decide. Knowledge is power!
Knowing whether your insurance pays for replacement cost (RCV) or actual cash value (ACV) is another important piece.These two different terms affect the way your claim is handled and paid out.
Filed claims typically stay on record for a period of three to five years, but again check your policy for any variations or conditions included. Some states may allow for a claim to stay on record for longer. Also be aware that back to back claims can and often result in loss of coverage.
Some other nuisances related to insurance claims include covered items and non covered items. Most policies will offer coverage for water damage that is sudden and unexpected, but some may not cover slow leaks that cause damage slowly over long periods of time. Wood rot, microbial issues, HVAC issues and plumbing concerns are other areas where you will likely find little or no coverage. For example, your water heater fails and causes extensive damage to your first floor. The water damage is covered by insurance but the cost for a new water heater and the installation is not.
Knowing what is specifically covered in your individual policy is extremely important.
These questions and countless others often plague property owners during an unexpected event such as a water loss.
Keep your policy in a safe place and check it annually to ensure you have the coverage you want and need in the event of the unexpected.
Last, but not least, ask questions! Lots of them, but ask them from your personal agent and your trusted contractor first.
