The Basics and What You Need to Know about Property Damage Claims
The Basics and What You Need to Know
The following factors will improve your claim’s chance of being approved.
- File the claim quickly. Insurance companies say they want claims filed “as soon as possible,” which usually translates to mean within 30 days. However, the sooner you file, the better.
- Know what’s covered. Before filing a claim, it’s essential that you know what’s covered by your policy and what the deductibles are.
- Document everything you can. If the claim is for an auto accident, take photos as soon as possible. If it’s for your home, take photos of the damage (and, even better, take photos/video of your home prior to the damage so you have something to compare against).
- Make sure everything is accurate. When filling out paperwork, make sure you have the details correct, as mistakes or inconsistencies can cause your claim to be denied or delayed.
When Not to File Insurance Claims
That said, there are times when you may be better off not filing a claim at all. This is particularly true of auto and homeowner’s insurance, when filing a claim can result in an increase in your premiums.
According to experts, if the claim is small (less than $1,000 after the deductible) you may want to just pay for the repairs on your own. This is especially true if you’ve filed any small claims in the last few years, as insurance companies may raise your rates or even drop your insurance if you file too many claims.
“Each company has different procedures, but generally if you file a lot of small claims that can be problematic,” said Jeanne Salvatore, vice president of consumer affairs for Insurance Information Institute in a CNNMoney.com article. “Statistically, most people only file a claim every 8 to 10 years, so if you’re filing more than that you stand out.”
Other instances when it’s best not to file a claim are when maintenance problems on your end, such as a leaky pipe, may have caused the damage.
Further, just inquiring about a claim can count against you. In some circumstances, insurance agents are required to report inquiries about claims (even if you don’t end up filing the claim), so always ask if the information will be reported before you turn to your agent for help.
Advantages of using a public adjuster
Public claims adjusters can minimize the hassle of collecting documents and evidence and they negotiate with your insurance company. An adjuster will file the necessary paperwork with your insurer, arrange for inspections of your damaged property and haggle with your insurance company if it refuses to pay your full claim.
Public adjusters also help their clients communicate effectively with their home insurance companies in order to expedite claim payments.