Filing an Insurance Claim
There was a time when filing a property and casualty insurance claim was expected if you suffered a loss. That time seems to be long gone. An insurance agent would encourage people to submit a claim when they had a loss, even if that loss was small. In more recent times, it seems that people are discouraged from filing claims because of the fear of having their insurance rates increase or being dropped by the insurance company.
What Types of Insurance Claims SHOULD I Submit?
So, is it worth it to file an insurance claim? Yes and no. Don’t file claims if it less than your deductible. Only file claims on more substantial losses that exceed your deductible. That brings us to another important point.
Ideally, consumers who buy insurance should make their deductibles as high as they can afford, accepting more of the loss risk. By doing so, they can save the additional money they would be paying for the lower deductible for a time they may have a loss. If they never suffer a loss, they are further ahead. If they do suffer a loss, the money they saved from lower insurance premiums can be allocated to offset the higher deductible.
The question remains, “Is It Worth It to File an Insurance Claim?” If you suffer a significant loss, it is almost always a good idea to submit a claim. Look at it this way: You paid insurance premiums for a reason right? You purchased insurance so that when you had a loss, especially a catastrophic one, you could be reimbursed for it.
The important thing to remember is that you shouldn’t purchase insurance so that you can use it as a petty cash fund. It should only be used to cover losses that you cannot usually pay for on your own. When you do suffer a significant loss, you may find yourself struggling to make the insurance company pay you for that loss. That is when having a strong ally is most important.
At the Smythe Law Group, Inc., we have worked with many home and business owners who have fought with insurance companies to pay them fairly for their losses. We use our experience and expertise to help property owners with their insurance claims. Our goal is to help our clients maximize their insurance policy benefits. If you need help with an insurance claim, give us a call for a free consultation.