? about insurance claims


#1

Hi I’m new here and I have a question for you guys that have experience dealing with insurance claims. If a homeowner has never made a claim and they make a claim for hail damage can the insurance company raise the homeowners rates?


#2

Whether they make a claim or not, if the amount of claims for that area are over the insurance companies quota, all homw owners will see an increase across the board.

They can not, or are not supposed to, single out an individual policy that has a claim for an act of Nature, buttttt, will they then find some other reasoning?

I think the insurance companies make out okay, even with catastophe damages from hurricanes added into the mix.

Ed


#3

I WOULD AGREE WITH THE 1ST REPLY, THAT THEY MAY RAISE ACROSS THE BOARD, IF THERE WAS A COMMUNITY LOSS. IN GENERAL THOUGH, I RECOMMEND AVOIDING CLAIMS IF YOU CAN FINANCIALLY. A TYPICAL CANCELLATION THAT THE COMPANIES USE, IS CALLED ‘FREQUENCY OF CLAIMS’. YOU HAVE A CLAIM OR TWO THAT ARE OVER THE DEDUCTIBLE SAY UNDER $5000.00. IT’S UNEXPECTED, AND YOU DECIDE TO CLAIM IT, EVEN THOUGH YOU COULD HANDLE IT, BECAUSE IT’S EASIER ON THE BUDGET. WELL A WHILE MONTHS DOWN THE ROAD, SOMETHING ELSE COMES UP, AGAIN, RELATIVELY LOW IN COST, AND YOU CLAIM THAT ALSO. IN MANY STATES THESE STAY ON YOUR CLUE REPORT, (LIKE YOUR MOTOR VEHICLE RECORD, OR CREDIT REPORT) FOR 5 YEARS. WELL A WIND STORM COMES THROUGH, AND A TREE DROPS THROUGH YOUR ROOF. YOU CAN’T COVER THE $40,000.00 IN DAMAGE, SO YOU CLAIM IT, ALONG WITH ALL YOUR NEIGHBORS. A FEW MONTHS LATER YOUR COMPANY NON-RENEWS YOU AND YOU GET TO SHOP FOR A NEW POLICY, THAT WILL HAVE HIGHER RATES, DUE TO ALL YOUR CLAIMS, AND THE RATE INCREASE THE WHOLE STATE JUST TOOK DUE TO THE CATASTROPHIC WINDSTORM. (THIS HAPPENED IN OREGON IN 2001) I’D RECOMMEND DOING THE REPAIRS OUT OF POCKET IF POSSIBLE


#4

As homeowners we pay alot of money in insurance premiums correct? So does it make sense that if we have damage to our property we don’t file a claim? IMO no If you have damage that is more than your deductible then claim it. Why else do you have insurance? I hear home owners tell me all the time “oh we’ve had insurance for 20 years and never filed a claim or we’ve only had 1 small claim”. Your chances of filing several claims in a short time period are minimal. If you have hail damage from a large storm that was declared a federal disaster which most are then your ploicy or it’s status can not be affected by that claim. Not to mention look at the cost’s to insurance companies from these storms. Do you agree your rate is going up anyway? If you have significant damage then file a claim and use your insurance that is why you have it correct?


#5

You have insurance for a reason. In my view of the world, you are wasting it if you never claim anything.


#6

Thanks for the replies. I’m just trying to clear up some confusion on whether or not your insurance company can raise your rates after one weather related claim regardless of a broad federal disaster.
I’ve been told by numerous people that they will not raise your rates after one weather related claim and then I had an insurance ajent tell me the other day that it will take away your claim-free discount which would be a rate increase. I’m just a little confused. I do agree with the replies that stated you should make a claim because that is the reason you have insurance.


#7

If you get in a car accident you usually file a claim to fix your car right? What is different if your home has damage? You make a claim and get it fixed.

Too many home owner claims is a bad thing though just like too many automobile claims. Say in two years you hit a deer, had a car stolen, had a tree fall on one, and some one rear ended you, you would file claims for each one right? Besides the deer which jumped out of the woods all were unavoidable right? Just like wind, hail, trees, lightening, fire, hurricanes, etc. they cannot be avoided.

A few years ago my wife and I were out in Maine driving my truck and my agent called me to inform me that my full coverage option had been dropped due to too many claims, only liability was on the vehicle. When asked what claims he told me because three windshields were replaced in two years. Keep in mind at that point I had been with that company for over 5 years with no tickets. Changed insurance companies at that point and have done so twice since.

Five years ago my friend got a new roof from his insurance company. He did it with the help of my brother who dates his daughter, his three daughters, wife and myself. The insurance company paid about half what they would have with a restoration contractor. Three years ago his house got hit by lightening taking out all the electronics. Two years ago it got hit by lightening again, same result. In August of 2006 his house and pole barn got pounded with base ball size hail damage and collected $17K in damages. His deductible is $250 so filing a claim is a no brainer. Now with 4 claims in 5 years he may be dropped. He’s had the same insurance company since he bought the house new in 1978, they may keep him around.

Did a roof for a home owner who got a new roof due to hail damage and less than two weeks later lightening hit the roof taking out all the electronics with it. Being a 2 million dollar house it was a spendy claim.

Did three roofs so far paid by the insurance company due to hail damage that it hailed golf ball sized hail on it the night they were finished. Amazingly enough each home was in different cities on different dates.


#8

HI,

Sj roofer you need to check with the states department of insurance. They have laws and guidelines that all insurance companies must follow in order to sell insurance in that state. Where I am at the State of Ohio prohibits an insurance company to single out the insured and raise thier rate due to a federal disaster. The insurance companies can raise thier rates however it must be across the board.


#9

The answer to your question isn’t always clear. There are a lot of factors involving homeowner insurance. What one has to understand is that insurance companies have a “base” rate for how they charge premiums. Usually, it is a certain amount of money for every $1,000 of insurance.

Once the replacement value of the house is determined this is the basis for the premium that is charged.

Typically, you will get a discount for things such as a security system, non-smoker, claims free and such.

This means whatever your base premium they charge, they give you a discount for what they consider to be good characteristics.

When you file a claim, if its applicable, you will lose you “claim free” discount. This is not considered to be a rate raise because the rates didn’t go up. Instead, as a homeowner, you lost a discount.

Another factor is building costs. If the cost to actually rebuild your home raises from $150K to $160K, then, your premium will go up. However, the insurance rates, or the amount per $1000, didn’t go up.

Keep in mind that rebuilding costs and market value can many times be very different. I see homes that have low market values, have very high construction replacement costs.

Keep in mind that insurance “rate” increases are usually subject to approval by a state department of insurance. However, your premium can increase by losing a discount or the cost to rebuild your home rises without rates actually going up.

When it comes to making a claim, if you don’t have a claim that is in excess of $1,000.00 then you’re better off not filing it.


#10

go into it with the understanding that …the insurance company is not on your side…they are on thier own side and they are all crooks (at lest in NY) i dont think im going to even do insurance bids anymore. I win maybe 1 out of every 200. you should see the ridiculous rates they pay out in NY. sorry for the anger…im just sick of wasting my time!!


#11

HI,
Marshall are they using exactimate for pricing? In N.E. Ohio exactimate pricing is almost fair to fair. I do know that the cost of living in your area is higher than ours. We usually get more from the insurance company than what the exactimate bid qoutes. Also I have found that to make money on insurance work you have to do several trades on one claim. Because the 20% for o&p will make the job worth while.

Does anyone know if exactimate figures in the local cost of living for that perticular region in which the property is located?

How much do you pay for a 30 year dimensional (just shingles) per square?


#12

they will figure a raise in somehow somewhere either on that customer or another just remember you are helping the customer just buy getting a claim so do not feel bad
just try to work there deductible into your price if you can
http://www.texaseliteroofing.com


#13

[quote=“mbf000”]they will figure a raise in somehow somewhere either on that customer or another just remember you are helping the customer just buy getting a claim so do not feel bad
just try to work there deductible into your price if you can
http://www.texaseliteroofing.com[/quote]

yeah, im helping the customer to get approved…then they either take the money & run, or higher a low baller and pocket the difference. :evil:


#14

Ridge Walker has a form he submitted on this site about 1-2 years ago, which authorizes his company to be able to discuss/negotiate the claim with the home owners insurance company, and alows for him to get the job from the home owner for doing that leg work.

Look up his posting history or use the search function for it.

The decuctible is the home owner rightful obligation to have to pay. By providing an additional alowance in you contract for them and “Kicking Back” the deductible to them, is taking a legal risk.

Basically, why should you pay for their deductible? If the settlement amount came oput to that figure, that is how much you deservedly should be paid.

Ed


#15

Thanks for all the replies. In Georgia insurance work pays pretty well. About on par with my prices minus the deductible of course. I’ve actually had some jobs where I upgraded from a 25 year to a 30 year and the insurance check was right there with my price. I did a job two weeks ago that the insurance company paid out for 46 squares and we put on 41. Somebody is not measuring right and sure isn’t me.


#16

Thanks for all the replies. In Georgia insurance work pays pretty well. About on par with my prices minus the deductible of course. I’ve actually had some jobs where I upgraded from a 25 year to a 30 year and the insurance check was right there with my price. I did a job two weeks ago that the insurance company paid out for 46 squares and we put on 41. Somebody is not measuring right and sure isn’t me.