Manage claims; don’t let them manage you.

Coaching tip: If you want to use the policy to cover larger losses, ask your agent how much you can save by opting for a higher deductible.

Some people have had the sad experience of filing three minor claims over a two year period and then getting non-renewed by the insurance company. Why does this happen? Insurance companies have figured out that every time a claim is filed, the chance of a subsequent claim increases. This means that after the first claim, the probability that you'll file a second claim increases. The average policy holder files a home insurance claim every 15-20 years. If you file claims frequently within a few years, you'll most likely be non-renewed. Why get non-renewed for three small claims over a two year period and then not have coverage for a $40,000 smoke damage claim or a $200,000 fire? You are far better off to save claims for when you really need them.

You can prevent cancellation by limiting the number of claims filed. Please consider the following ideas:

  • Know your deductible. Not all deductibles are fixed amounts. Some companies offer deductibles that are a percentage of the amount for which the home is covered.
  • Get an estimate before you submit a claim to the company. If the cost of repair is just one hundred or two hundred dollars over your deductible, don’t file the claim.
  • Before you file the claim, ask your agent to check the policy language to make sure the claim is covered.
  • Make sure that you keep track of hours you spend working on the claim. Your labor is worth something, right? Shouldn’t the value of your labor reduce the deductible applied to the claim?
  • Ask your agent if simple inquiries are reported to the company; you want to avoid giving the company negative or derogatory information just because you ask a question about a potential claim.
  • If you hire a restoration company, ask the adjustor to hold the payment until you are satisfied with the work.
  • Know your deductible. Not all deductibles are fixed amounts. Some companies offer deductibles that are a percentage of the amount for which the home is covered.
  • Get an estimate before you submit a claim to the company. If the cost of repair is just one hundred or two hundred dollars over your deductible, don’t file the claim.
  • Before you file the claim, ask your agent to check the policy language to make sure the claim is covered.
  • Make sure that you keep track of hours you spend working on the claim. Your labor is worth something, right? Shouldn’t the value of your labor reduce the deductible applied to the claim?
  • Ask your agent if simple inquiries are reported to the company; you want to avoid giving the company negative or derogatory information just because you ask a question about a potential claim.
  • If you hire a restoration company, ask the adjustor to hold the payment until you are satisfied with the work.