Wednesday, December 11, 2013

Is filing a claim worth it if the value isn't that high?

Is filing a 

home or renters insurance claim worth it if the value isn't that high?  Items worth: ~$1500  Deductible: $1000

A few questions to ask yourself:
  • Could this turn into a larger claim down the line?
  • Am I willing to pay a higher premium if I make this claim?
  • If I'm not sure if I'm going to make a claim for $500, would I be better off at a $1,500 or $2,500 deductible?

So here's the rub.  One claim isn't going to kill you and may not affect your premium at all.  You could lose any 'claims free discount' that some companies offer. 

If you have another big claim such as a water damage claim, you now have a severe claim and have a frequency of claims (2), so you may not qualify for the best rates anymore.  
Also, keep in mind that many brokers will have to report your claim to the company even if you don't want them to because of the nature of their contractual relationship with the carrier.

Creating a spreadsheet along with when, where, and the cost of items is a great way to keep track of your household inventory.  There is also software that will do this for you and lets you scan in receipts and attach pictures (
).  By going room by room and listing everything, you will have a better case when speaking to adjustors.

Schedule any heirlooms onto the policy with a specific agreed value.  Also, you can raise the limit for jewelry by endorsement.

This blog was a combination of two questions I answered on Quora.  See my answer and others here:

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