Last week I dropped the rion burning an iron print in my carpet. I have home contents cover which covers accidental damage and have enquired aboutmaking a claim. I've never claimed before and wondered waht the implications are? Will my premium increase?
2006-10-10 02:14:22 · 6 answers · asked by ? 6 in Business & Finance ➔ Insurance
If you live in the UK then the insurance will work as follows:
You put in for the insurance claim, the insurers will assess the cost of the repairs (this may involve you obtaining quotes, or may involve a visit from an insurance assessor). This will give them an amount that it will cost to repair the damage, from this they will deduct the excess (this will vary depending on your policy, however it will probably be at least £100). They will then send you a cheque to cover the cost of the repairs, and you will have to decide if you want to go ahead and get the repairs done. When you come to get your insurance quote at the end of the year they will increase your premium to recover the amount that they have paid out.
2006-10-10 02:43:41 · answer #1 · answered by bumblingbeermonster 3 · 0⤊ 0⤋
I am a P & C agent in WV. State laws vary, but yes, your premium will increase. Also you probably have a deductible that could be more than the cost to repair your rug. Also, after two or three claims, no matter how small, many standard companies will refuse to write business with you and you'll pay huge premiums with a non-standard company for mediocre coverage. My advice is never to file a claim under $1,000, and only then if you don't have the funds to repair the damage out of pocket.
2006-10-10 02:26:15 · answer #2 · answered by xsamantha79 1 · 0⤊ 0⤋
You may or may not have a premium increase - depends on if you've had other losses, if you have a loss free discount on your policy now, and if your company is allowed to raise the rates for claims.
You will have a deductible to pay, also.
I would NOT file a homeowners claim for under $1,000 - in many states, the insurance company can cancel you for two claims inside of three years, and THEN you'll have a nearly impossible time at finding insurance, for less than 5X whatever you're paying now.
2006-10-10 05:57:50 · answer #3 · answered by Anonymous 7 · 0⤊ 0⤋
Okay, first of all, that is an easy repair job, and it won't constitute using your insurance...The guy hired will just cut a section out of your closet, and repair the hole from the iron...It happened to me, once...That's the only way the insurance would fix the problem...
Second, every time you use your insurance, you get one strike against you...After the second strike, the insurance people usually drop you...Mostly if you hand in two claims within three years...(that happened to me, too)...
We had to search high and low for a state to cover us, and it wasn't our state...The insurance coverage was only $198.00 a year, and went to $1,500.00 a year...This higher payment had to go on for at least three years before we could get better coverage...
So, I would think a second time before I use my insurance coverage...Besides, what is your deductable? You may end up paying for the fix anyway...
This is how the big guys keep winning...
2006-10-10 02:27:23 · answer #4 · answered by Anonymous · 0⤊ 0⤋
It depends who you are insured with, check the small print on your policy, then give them a ring, they can either say yes or no. If you are in the UK, ime insured with Direct Line, I've made two claimes, and my policy has only gone up by £5.00 a month. If you can find anybody cheaper tell them they will try to beet it.
2006-10-10 02:29:25 · answer #5 · answered by Tony S 1 · 0⤊ 0⤋
Yes your premiums will increase, maybe not until you have to renew your policy, but they def will increase
2006-10-10 02:21:12 · answer #6 · answered by OriginalBubble 6 · 0⤊ 0⤋