Should I file A Claim or Pay Out Of Pocket?


What to Consider Before Filing an Insurance Claim

A note from the President

Over the past few years we have noticed an increase in anxiety over insurance coverage when determining whether to put a claim in with your carrier. I get asked more frequently: Should I file a claim or pay out of pocket?

insurance claimDeductibles have increased dramatically over recent years and lately, over the past couple years we have seen more of the percentage deductibles. This is a deductible based on the value of your home. If your home is assessed at $250,000 then you may have a ½ percent – 3 percent deductible based on that amount. Generally, the deductible is paid upfront to the contractor before work begins.  What you need to know as the consumer is the impact of a claim and what the value is worth to put that claim in rather than paying out of pocket.

For example, if you have a $1,000 deductible and your damages are worth around that amount is it worth putting that claim in? We are all busy and when we experience an inconvenience such as a water damage, sewage damage or mold damage, we instantly think we have insurance for this and go that route. However, there may be consequences felt later for putting that claim in such as being dropped from a policy, increases in premiums and deductibles. Now, putting one claim in does not mean you’ll be dropped but putting several small value claims in can be problematic.

I have some important factors to consider before putting a call into your insurance representative. I would encourage you to do your homework and consult with our team of professionals who can assist you in determining the best course of action to take.  Here at Tri State Restorations we take pride in Turning Disaster into Peace of Mind with your biggest investment.

What to consider before putting in an insurance claim:

  • How large is the area? How many rooms are affected? The more rooms affected the larger the loss.
  • Are the damaged areas finished?  Do you have carpet, padding and drywall affected? These types of material are harder to dry and may need to be partially or all replaced. When you’re thinking about the dry out and tear out, there is also a cost for the repairs i.e. new carpet and padding, drywall and paint, etc. It can be costly.
  • Do you have contents? Did you have valuables and furniture sitting in the damaged area? You may have contents coverage, especially if you have a renter’s policy. The value of your damaged contents may be enough to validate a claim.
  • Do you have coverage? Always review your policy and coverage limits. We recommend that you review your policy once a year to make sure you’re adequately covered for water, sewage, mold and fire and smoke events.
  • Have you called a professional restoration company? Tri State Restorations has many years of consulting experience and can help assist you in making a decision to file a claim or not.

I hope that you have found this information both informative and valuable in your journey to determine whether or not to put a claim in. Should you have any questions or needs that arise from this, please do not hesitate to contact us at 866-818-1949.

Thank you.

Mark A. Wilson