Does it make sense to go through the insurance claims process for a home or auto repair? Here are some important factors to keep in mind when deciding whether to file an insurance claim.
To file…or not to file…an insurance claim? Accidents and damage happen, and you are paying an insurance company to help you when they do. However, in some cases, filing a claim may not be in your best interest and may even work against you.
Even after you have spent time and energy filing a claim, it may be denied, and the damage still needs to be repaired regardless. So, are you better off not filing a claim and just handling everything on your own? It’s important to understand that filing a claim with your insurance company can pose a few risks and can cost you even more down the road. This doesn’t mean you should never file a claim. Rather, you should know when it makes sense to file and proceed with the insurance claims process.
Each insurer’s process may vary, but here is typical Florida insurance claims process:
- Open a claim – call your insurance company and let them know the extent of the damage
- Document your loss – submit the proper paperwork/photos
- Verify the damages by a public and/or independent adjuster – after they determine the cause of the accident, the adjuster will make a recommendation for how much the insurance company should pay for the loss
- Insurance company provides an offer – you can accept their offer or take the necessary steps to dispute this offer and request a higher claim payment
When to Start the Insurance Claims Process
Every insurance policy is different, and so are your deductibles, which play a significant role in determining whether you should file a claim. For example, if the damage that you’re filing a claim for is only $500 and your deductible is $1,000, then it would make sense to make the repairs on your own without filing a claim. Or let’s say that the damage repair total is $1,200 and your deductible is still $1,000, would it then make sense to file a claim to save that $200?
In the short term, perhaps it makes sense. However, that $200 savings could quickly get chewed into by how much time and energy you’ll lose filing the claim and completing paperwork. Not to mention, the more claims you file, the more at risk your insurance profile becomes, which can increase your premium when it’s time to renew, and your insurance company may even cancel your coverage altogether.
Yes, depending on your deductible, you may pay less out of pocket, up-front when you file a claim with your insurance. But you should choose carefully which repairs you should actually claim.
Need Help Finding the Best Insurance Company for You?
With so many options in Florida, finding the best insurance company can be challenging. At GreatFlorida Insurance we can do all of the groundwork for you. In addition to finding the most competitive rates for you, our agents are also available to respond to all of your insurance questions. Contact us today to get started.