My New Years\u2019 Resolution for 2022 is to educate my clients on a variety of insurance topics. \u00a0\u00a0Understanding the insurance rating process will help you\u00a0keep your insurance premiums\u00a0as low as possible.<\/p>\n\n\n\n
My topic today is going to be homeowners’ claims, should you submit or not submit it?<\/p>\n\n\n\n
I think it is important for you to know that you can be canceled for claims.\u00a0\u00a0\u00a0 It is not unusual for a company to cancel you if you\u2019ve had 2 claims in 3 \u2013 5 years.<\/p>\n\n\n\n
So what happens if you\u2019re canceled for claims?\u00a0\u00a0 If this happens then I can\u2019t get you insured with another preferred company until that falls off your record.\u00a0\u00a0\u00a0 I just had this happen to a good client of mine and it is a big deal for them.\u00a0\u00a0 Their\u00a0premium increased from $1700 to over $3000 once 2 claims were presented.\u00a0\u00a0 On the third, they were canceled.\u00a0\u00a0\u00a0The only company I can place them with is a high-risk company.\u00a0\u00a0\u00a0The\u00a0premium is\u00a0now over $4400\u00a0a year and their coverage is not nearly as good as the old policy. \u00a0They have no choice but to take the policy because nobody else will insure them.\u00a0\u00a0\u00a0Even one claim can preclude you from moving to some insurance companies.\u00a0\u00a0 I have several companies that won\u2019t write a home if the client has had 1 loss in 3 years.<\/p>\n\n\n\n
I know\u2026why have insurance?!?!?\u00a0\u00a0\u00a0I agree it isn\u2019t fair, but this is how it\u00a0is unless they pass legislation precluding companies for canceling due to claims.<\/p>\n\n\n\n
The amount of the claim doesn\u2019t matter, it is a frequency issue.\u00a0\u00a0 I had a client that came to me from another company.\u00a0\u00a0 She was canceled for having\u00a0a $150 claim and a $500 claim.\u00a0\u00a0\u00a0I was able to write the policy, but the premium was\u00a0$3000.\u00a0\u00a0 Her original premium was only $500.<\/p>\n\n\n\n
Back to my original question, should you submit that claim?\u00a0\u00a0 Well, that is up to each individual situation and your \u201cpain threshold\u201d as I like to put it.\u00a0\u00a0\u00a0 Claims stay on your record for\u00a0five long years.\u00a0 Of course, there are those situations where you can\u2019t avoid a claim and really that is why you have insurance.\u00a0\u00a0 Don\u2019t be afraid to submit a claim if you need to.\u00a0\u00a0 My primary goal is to protect you and educate you on the process.\u00a0\u00a0 I write for 15 different companies and have the ability to move you if needed.\u00a0\u00a0 I want to keep you in the best possible rating category to keep those rates down.<\/p>\n\n\n\n
Some claims are unavoidable, but keeping your home well-maintained will stave off many unfortunate situations.\u00a0\u00a0 Is your roof in good repair?\u00a0\u00a0 If you have an older home, have you had that inspected by a plumber or electrician to insure that all is in good working order?\u00a0\u00a0 What about that\u00a0old water heater?\u00a0\u00a0\u00a0Those have to be\u00a0replaced as they get older because they\u2019ve been known to explode, causing major water damage. \u00a0 It is recommended that they be replaced every 10 years.\u00a0\u00a0 There are many ways to ensure that you and your family have a safe and claim-free home.<\/p>\n\n\n\n