When something goes wrong with your home or vehicle, one of the first questions you may ask is: Should I file an insurance claim?
Filing a claim can help cover the cost of a significant covered loss, but not every situation necessarily makes sense to turn into an insurance claim. Your deductible, the amount of damage, your coverage, your claims history, and the circumstances of the loss can all play a role in deciding what to do.
There is no one-size-fits-all answer. If you’re unsure what to do after a loss, our recommendation is to reach out to your insurance agent before making any decisions about filing a claim. We can help you understand your options and make sure you know what to expect before you move forward.
When Should You Consider Filing an Insurance Claim?
Insurance is designed to protect you from unexpected losses that could create a significant financial burden. If the damage is substantial and the cost to repair or replace the damaged property is well above your deductible, filing a claim may make sense.
Examples of situations where you may want to consider filing a claim include:
- Significant damage to your home from a covered event
- Major roof damage caused by a covered storm
- Extensive water damage from a covered cause
- A vehicle accident resulting in substantial damage
- Damage caused by another driver when you need to use your own coverage
- A loss that would be difficult to pay for out of pocket
The important thing to remember is that your insurance policy is there to protect you when you experience a covered loss. If you’re dealing with significant damage, don’t avoid filing a legitimate claim simply because you’re concerned about your insurance premium.
If you’re unsure whether your situation warrants a claim, give us a call before filing. We can discuss what happened, review the coverage available on your policy, and help you determine the best next step.
When Might It Not Make Sense to File a Claim?
For smaller losses, you may want to consider the cost of the damage compared with your deductible.
For example, if you have a $1,000 deductible and the damage is estimated to cost $1,200 to repair, you may only have a relatively small amount of insurance benefit available after your deductible. Depending on the circumstances, you may decide that handling the repair yourself makes more sense.
However, you shouldn’t automatically assume that a loss isn’t worth reporting simply because the initial damage appears to be close to your deductible.
There may be additional damage that isn’t immediately visible, or the circumstances of the loss may make reporting it important. Before deciding to handle a loss yourself, reach out to us. We can help you understand what coverage may apply and what your options are.
Will Filing a Claim Increase My Insurance Premium?
It can, but there is no simple answer that applies to every claim.
Insurance companies consider several factors when determining premiums, and claims history can be one of them. The impact of a claim can depend on the type of claim, the circumstances surrounding the loss, your previous claims history, and the insurance company’s underwriting guidelines.
This doesn’t mean you should avoid filing a legitimate claim simply because you’re worried about your premium. Insurance is meant to protect you from losses that could otherwise create a significant financial burden.
If you’re concerned about how a potential claim could affect your policy, talk with us before deciding what to do. While we cannot guarantee how a claim will affect your future premium, we can help explain your coverage and discuss the situation with you.
What Happens After You File a Claim?
If you decide to file a claim, the insurance company will generally gather information about what happened and evaluate the damage.
Depending on the type and severity of the loss, an adjuster may inspect the property or vehicle, review photographs and documentation, and determine what damage may be covered under your policy.
It is important to understand that your insurance agent does not determine whether a claim will ultimately be covered or how much will be paid. Those decisions are made by the insurance company and claims department based on the policy and the details of the loss.
Our job is to help you understand your coverage and help guide you through the process. If you have questions about what happens after a claim is filed, we’re here to help.
What If the Damage Is Below Your Deductible?
If the estimated cost of repairs is less than your deductible, your insurance policy generally would not provide payment for that loss.
For example, if you have a $1,000 deductible and the covered damage is estimated at $700, you would generally be responsible for the full $700.
However, it’s still important to consider the entire situation. Damage that initially appears minor could turn out to be more extensive once it is inspected.
This is another reason we recommend contacting us before making a decision. Rather than trying to determine on your own whether a loss is worth filing, let us help you understand your coverage and talk through your options.
What Should I Do After a Loss?
If you’ve experienced damage, your first priority should always be safety. Once it is safe to do so, we recommend contacting us as soon as possible.
Before making permanent repairs or deciding how you want to handle the damage, give our office a call. We can help you determine what information may be needed and explain what the next steps could look like.
In the meantime:
1. Document the Damage
Take photos and videos of the damage when it is safe to do so. Try to capture both close-up photographs of the damage and wider photographs that show the overall area.
If personal belongings were damaged, photographs can also help document what was affected.
2. Prevent Further Damage
Take reasonable steps to protect your property from additional damage when it is safe to do so.
For example, you may need to cover a broken window or take temporary measures to prevent additional water from entering your home. Keep receipts for reasonable temporary repairs or related expenses.
Don’t put yourself in danger trying to make repairs.
3. Give Us a Call
Before looking through your policy and trying to determine coverage on your own, reach out to us.
We can help explain your coverage, deductible, and the options available to you based on the type of loss you’ve experienced.
4. Keep Records
Keep photographs, receipts, estimates, invoices, and other documentation related to the damage and any temporary repairs.
Having organized records can make the claims process easier if you decide to move forward with a claim.
Common Mistakes to Avoid After a Loss
After experiencing damage, it is easy to feel overwhelmed. A few simple steps can help you avoid unnecessary problems.
Don’t assume something is or isn’t covered. Insurance policies can be complicated, and coverage depends on the specific policy and circumstances of the loss.
Don’t make permanent repairs before the damage is properly documented. Temporary repairs may be necessary to prevent additional damage, but your insurance company may want to inspect the original damage.
Don’t throw away damaged property too quickly. The insurance company may need to inspect or document damaged items.
Don’t make a decision about filing a claim based solely on your deductible. There may be additional factors that aren’t immediately obvious.
And most importantly, don’t feel like you have to figure everything out on your own. Your insurance agent is there to help.
When Should You Contact Us?
Our recommendation is simple: if you’re unsure what to do after a loss, call us first.
Whether you’ve had water damage in your home, experienced storm damage, been involved in an auto accident, or have another insurance-related loss, we’d rather you reach out with questions than try to figure everything out on your own.
We can help you understand your coverage, explain your deductible, discuss your options, and help you determine what the next step should be.
While we cannot determine whether a claim will ultimately be covered or how much the insurance company will pay, we can help you navigate the process and communicate with the carrier when needed.
The Bottom Line: Should You File a Claim?
There isn’t a single dollar amount or rule that determines whether you should file an insurance claim.
A significant loss that is well above your deductible may be a good reason to use your insurance. A small loss that is only slightly above your deductible may be something you want to think through carefully.
The best place to start is with a conversation with your insurance agent.
At Davis Insurance Agency, Inc., we believe insurance shouldn’t be confusing. When you experience a loss, you don’t have to sort through your policy and try to determine everything yourself.
Give us a call first. We’ll help you understand your coverage, explain your options, and point you in the right direction.
We proudly serve homeowners and drivers throughout Spring Hill and Middle Tennessee, and we’re always happy to answer questions about your insurance.
Have questions about a recent loss or wondering whether you should file a claim? Contact us before making a decision. We’re here to help you understand your coverage and determine your next steps.