Say for instance you filed a claim because a water leak ruined the ceiling in your bathroom. You called a plumber, who came out, identified where the leak was coming from and repaired the pipe. His charge was $550. Then you had a handyman come out, repair the ceiling, repaint it and touch up surrounding walls. His charge was $1100. Your total charge was $1650, and you have a $2500 deductible. So, you called your insurance company back and cancelled the claim. No harm, no foul, right?
Well, not exactly. Even though no money was paid out by your insurance company, the fact that you called in the claim still goes on your record. And most insurance companies use claims data to predict how likely you are to file future claims. While a zero-dollar claim did not cost the insurance company money, the fact that you filed a claim still indicates to them that you may be a potential risk for future claims.
Sharing Data. Insurers use databases to share claims data. LexisNexis is one of the most commonly used databases. Even when you seek new coverage from another insurer, this information will remain on your record. You can be denied coverage, or your premiums can increase based on your claims history – EVEN if the claim did not result in a payout.
What Should You Do? Generally, we suggest that you do not file a claim until you know the costs, or approximate costs, beforehand. Determine whether 1) it is financially necessary; and 2) does it make sense to file a claim.
Call Restoration 1 of West Denver First. We are happy to provide a free onsite damage assessment. Once assessed, we can provide an estimate for the work to be done. And we will give you our professional advice with regard to restoration. This will give you the information you need to decide if a claim is actually necessary.
Filing a claim could be costly. Let our experienced team evaluate the problem and help protect your home – without undue stress. Give us a call at 720-605-2994