When Should I File An Insurance Claim?
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When Should I File An Insurance Claim?

It is always a good idea to consult with your independent insurance agent.

5/31/2012

Insurance Claims

To pay out of pocket or file an insurance claim; the answer is not always clear.

You purchase insurance for life’s unexpected events and you trust your independent insurance agent to help you find the right coverage for the best price.

By definition an insurance claim is a request to an insurance company to pay for a loss. This claim initiates an evaluation process to determine if the loss is the responsibility of the requested insurance company. However, keep in mind that the purpose of insurance for consumers is to protect them from financial disaster, not small expenses.

There are no set rules on when to file a claim although the guidelines below can help you evaluate your individual situation. It is always a good idea to consult with your agent. Remember – he/she is there to look out for your best interest and may have more information that may affect your decision.

DO file if …
It is a BIG claim. Experts agree it is not wise to make small claims, although they disagree on what small means. To some that is $500. Others say $1,000. It will depend on what you can afford to pay out of pocket.
You have not had recent claims. Filing a single claim might have no effect on your auto or homeowners premiums.
Injuries are involved. If there is a chance someone else in the incident could claim they were injured, file a claim to protect yourself from an injury lawsuit.
You have had the policy a while. Longtime customers who make few or no claims generally get more leniency than new customers who file claims.

DO NOT file if …
Your deductible is higher than the value of your claim. Your deductible is the amount you have to pay before your insurance kicks in.
You have had other recent claims. Filing several claims in the same year might trigger an increase, Hubbard said. So, if you are facing numerous claims, you might want to pay one of the smaller ones out of pocket, she said.

The Risk Of Flooding Is Real

PERSONAL INSURANCE

The Risk Of Flooding Is Real; Don’t Gamble Anymore

     A recent survey of a Vermont town affected by the recent Northeast flooding found that 80% of the people suffering a flood loss did not have the funds to repair all of the damage they received.  Between 2001 and 2010 the average loss paid by the National Flood Insurance Program (NFIP) was $48,000. 

 

     Because most homeowners policies do not cover flood losses, would the average flood loss—or even a smaller flood loss— cause you a significant financial burden?  If so, a flood insurance policy can help.  A flood insurance policy can provide up to $250,000 in structure coverage and up to $100,000 in contents coverage for homeowners.   Renters can purchase up to $100,000 in contents coverage.

 

     You can buy flood insurance no matter what your flood risk.  Almost anyone in a community that participates in the NFIP can purchase coverage.  There are very few exceptions. 

     You do not need to live near water to be flooded.  Many people affected by flooding live miles from the nearest river or ocean.  Floods are caused not only by storms and hurricanes, but also snowmelt, inadequate and overloaded drainage systems and even broken municipal water mains.

     Flood insurance is affordable.  Homeowners in low-risk areas can purchase $20,000 in building and $8,000 in contents coverage for as little as $129 a year.  Even a small amount of flood insurance can help reduce the burden of a potential flood loss.

   

     Do you think a flood can’t happen to you?  That’s what the people in the Vermont survey thought.  They gambled and lost.  Some of them may never recover.   Don’t let that happen to you.  Please contact our office and we will be happy to discuss your flood insurance options.

Flood Insurance