What you need to know about insurance claims

By | June 29, 2009

If you are not sure if it’s a good idea to file an insurance claim when something bad happens, you are not the only one to ask this question. Lost of people ask themselves if their policy will be cancelled, if their rates will go up, or if their insurance history will be tarnished. This article will discuss the pros and cons of submitting a claim.

Insurance is a service that a policyholder has paid for so in this respect, it makes sense to take advantage of the product that was paid for. A good policy will pay for repairs to your property or automobile, depending on which policy you are making claim under. This means your house will get fixed or your car will be repaired and back on the road. The next advantage is that quality insurance carriers will often have a network of pre-qualified collision shops or repair contractors that can assist policyholders in the actual repair process. These service providers usually have to meet certain minimum requirements for quality and customer service. They will often respond quickly in the event of a problem if a complaint is forwarded directly to the insurance company that referred them.

Insurance is a very important and difficult task. Companies will be very careful when they attempt to underwrite a risk. Previous history is very sensible for them. If you had several claims in a short period or claims are of the same type or if you have high dollar claim payouts, they will avoid you. Sometimes they will increase the premium based on unfavorable history. The special limits and lower deductibles will diminish the coverage. The company will try to prove cleverer than the insured.

Timely claim of insurance are to be made on own interest. Late claim may cause difficulty in investigation and the insurance company could deny coverage. This is very important in case of claims on home or commercial property and more important in auto and general liability claims where the stakes are higher.

Choosing to submit a claim to your insurance company should be based on several factors. If the loss is small, and not more than your deductible, you should pay with your own funds. If another party is at fault, the negligent party’s insurance should compensate you. If you call your own agent and wait for an adjuster to deal with the problem, you have created an adversarial action and may require additional efforts to conclude the case to your satisfaction. Above all, always call your agent about your concerns and specific issues before making a decision to file a claim.

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