To Claim or Not to Claim

You may be thinking: “What?! Don’t I have insurance for that very reason? I pay my premiums and the company helps when I suffer a loss! Why do I even pay for insurance if they’re going to cancel me for seeking assistance?!”

Yes, your insurance company is here to help you if you suffer a loss. But let’s look at it this way…

Let’s say you put in a claim for the watch that was stolen while you were away on vacation last summer. Then, in April, there was a smoke damage claim because you accidentally left the stove on and the food you were cooking burnt while you were talking on the phone. And just last week you put in a claim because there was an issue with your upstairs plumbing causing the bathroom to flood. Now the bathroom floor needs to be replaced and the water logged ceiling in the room below needs to be repaired.

These claims by themselves are not HUGE expenses, but to your insurance company they represent a larger issue… carelessness and/or neglect. Your insurance agent should take the time to review the ramifications of turning in multiple small claims. Shopping for new insurance may become more difficult for you, because if you’ve had multiple claims over the past 2-3 years companies may deny you or charge a higher premium. Yes, you’ve paid for the right to turn in any covered claim and be reimbursed by the company. But your company reserves the right to non-renew if you appear to be a high-risk insured. Always consider the option of retaining the cost of a loss yourself to prevent a claim from being added to your policy’s history. If you ever need advice about a loss or whether you should put in a claim or not, give your agent a call. We are happy to share our experience and insurance knowledge with you.

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