First homeowner's insurance claim...will my premiums increase?

[EstimateMe]

In a follow up to this thread, I went and spoke to the State Farm agent today who said that if I file a claim, then our old hot tub that caught on fire this weekend would be replaced. However, she said that we ran the risk of a premium increase, and since the avg. homeowner claims something every 7 years, we'd be above the average claim rate if we ever claimed anything else within 7 years.

We pay $502/year for a decent policy with State Farm w/ a $500 deductible. ~$140k house in North Carolina that was 100% financed.

I'm also thinking if they replaced with a new, modern unit, it might make our home value increase. So, if premiums went up slightly, it might be worth it.

Anybody been in a situation like this before?

 

[Reggae4k]

as long as your not PAB, i think you will be ok.

 

[FoBoT]

how much $ is this claim for ?


i wouldn't use homeowners unless it was something BIG

 

[JulesMaximus]

Originally posted by: FoBoT
how much $ is this claim for ?


i wouldn't use homeowners unless it was something BIG

Agreed. We haven't made a claim against our homeowners insurance ever. People make claims for the dumbest sh!t I've ever heard of though in talking to our insurance company. Stupid crap like, the power went off and everything in our fridge spoiled...:roll:

 

[EstimateMe]

Originally posted by: FoBoT
how much $ is this claim for ?


i wouldn't use homeowners unless it was something BIG

The total claim I'm thinking would be around $4k. Removal of old unit, new BASIC unit, installation, etc.

If it's going to be really worth it (roughly same premium, roughly the same risk factor), then great, we'll claim it. If not, I'd rather drop back and punt and have 1-800-got-junk come and get it for $200.

 

[bctbct]

dude file the claim, its on your record now and when they dump you for your next claim all future insureres are going to count it against you anyway

 

[waggy]

Originally posted by: bctbct
dude file the claim, its on your record now and when they dump you for your next claim all future insureres are going to count it against you anyway

and this is why i hate insurance. its a fricken scam. you pay monthly for it for a level of protection. BUT if you use it they raise your rates.

but we have people like PAB to thank for that. fruadulent claims hurt everyone.

 

[mugs]

Originally posted by: EstimateMe
In a follow up to this thread, I went and spoke to the State Farm agent today who said that if I file a claim, then our old hot tub that caught on fire this weekend would be replaced. However, she said that we ran the risk of a premium increase, and since the avg. homeowner claims something every 7 years, we'd be above the average claim rate if we ever claimed anything else within 7 years.

We pay $502/year for a decent policy with State Farm w/ a $500 deductible. ~$140k house in North Carolina that was 100% financed.

I'm also thinking if they replaced with a new, modern unit, it might make our home value increase. So, if premiums went up slightly, it might be worth it.

Anybody been in a situation like this before?

I don't know what affect it will have on your home value, but if you actually WANT a hot tub I see no reason not to claim it. Even with a rate increase it'll cost you less to replace your old hot tub than to buy a new one.

 

[Vic]

Originally posted by: waggy

Originally posted by: bctbct
dude file the claim, its on your record now and when they dump you for your next claim all future insureres are going to count it against you anyway

and this is why i hate insurance. its a fricken scam. you pay monthly for it for a level of protection. BUT if you use it they raise your rates.

but we have people like PAB to thank for that. fruadulent claims hurt everyone.

Nothing is "on his record" until he files the claim.

The "level of protection" includes how often you use it. If you choose to use it more often, then you are purchasing a higher level of protection, now aren't you?

IMO, the OP should file this claim. The amount of the claim should exceed any increased cost, and 1 claim usually doesn't hurt too much anyway. However, any more claims in the next few years could be a problem.

 

[bctbct]

Originally posted by: Vic

Nothing is "on his record" until he files the claim.

Sorry, times change and so has this. If you call it goes in the claims database. Buddy of mine is an agent. Two major companies that he has worked for do this.

 

[bobdelt]

file the claim...

they arent going to raise your premium by over 3500 spread out over the next few years. I doubt your premium will change at all, and even if it goes up a little bit itll be worth it.

If insurances companies raised premiums higher than your claim, then they probably wouldnt be in business.

 

[Lvis]

I filed a claim last year for my roof. First time ever, I'd been with them six or seven years. They didn't raise my rates. It was fairly small though, 2500.

 

[BoomerD]

The big factor here to consider, is will you use the hot-tub if they replace it? If not, why bother? You'll still have to maintain it, even if you don't use it. Granted, you COULD keep it totally empty, and not have to maintain it, but again, why bother?

 

[ponyo]

Originally posted by: Lvis
I filed a claim last year for my roof. First time ever, I'd been with them six or seven years. They didn't raise my rates. It was fairly small though, 2500.

Same with me although I filed couple years back. My rates didn't increase.

I just changed our deductible to $2500 this year. I don't plan on filing anything unless it's major.

OP, I would file.

 

[geckojohn]

So, what did you end up doing?

 

[Vic]

Originally posted by: Naustica

Originally posted by: Lvis
I filed a claim last year for my roof. First time ever, I'd been with them six or seven years. They didn't raise my rates. It was fairly small though, 2500.

Same with me although I filed couple years back. My rates didn't increase.

I just changed our deductible to $2500 this year. I don't plan on filing anything unless it's major.

OP, I would file.

Unless you own your home outright, that deductible is almost certainly higher than your mortgage lender allows, and they could slap force-place insurance on you at significant cost. I suggest reviewing your loan closing documents and adjusting your premium accordingly.

 

[huberm]

my dad is an insurance agent. I asked him about the first claim a while back, and he said that you run the risk of getting your policy cancelled if it appears to be "careless". To illustrate, he likened it to using a bbq grill in the living room and catching the place on fire.

So if the hot tub incident could possibly even smell of negligence on your part, recommend not submitting the claim to avoid getting cancelled & having that on the CLUE report.

 

[Vette73]

File. Whats the point of insurance if you don't. That and if you called I am sure it is on record that you called aboiut a claim on XYZ for item 123.

 

[geckojohn]

Originally posted by: Vic

Originally posted by: Naustica

Originally posted by: Lvis
I filed a claim last year for my roof. First time ever, I'd been with them six or seven years. They didn't raise my rates. It was fairly small though, 2500.

Same with me although I filed couple years back. My rates didn't increase.

I just changed our deductible to $2500 this year. I don't plan on filing anything unless it's major.

OP, I would file.

Unless you own your home outright, that deductible is almost certainly higher than your mortgage lender allows, and they could slap force-place insurance on you at significant cost. I suggest reviewing your loan closing documents and adjusting your premium accordingly.

depending on the insurance company... a lot of insurance companies have it where you can have higher deductible... but the mortgage company has a separate, lower deductible (usually at 1000 or less).

 

[Vic]

Originally posted by: geckojohn

Originally posted by: Vic

Originally posted by: Naustica

Originally posted by: Lvis
I filed a claim last year for my roof. First time ever, I'd been with them six or seven years. They didn't raise my rates. It was fairly small though, 2500.

Same with me although I filed couple years back. My rates didn't increase.

I just changed our deductible to $2500 this year. I don't plan on filing anything unless it's major.

OP, I would file.

Unless you own your home outright, that deductible is almost certainly higher than your mortgage lender allows, and they could slap force-place insurance on you at significant cost. I suggest reviewing your loan closing documents and adjusting your premium accordingly.

depending on the insurance company... a lot of insurance companies have it where you can have higher deductible... but the mortgage company has a separate, lower deductible (usually at 1000 or less).

There is only 1 deductible and the homeowner always pays it.

 

[Lola]

If you were getting a Claim Free Dsicount, you might lose that causing your premiums to go up, but it is not like a car claim where if you make a claim from someting that was your fault the rates would increase.
Not the same for your home

 

[amdforever2]

I think he means your deductible for everything is $2500, unless it involves a loss where the mortgage company must be paid, and in that case your deductible is $1000.

 

[Whoozyerdaddy]

Where's PAB when you really need him? :roll:

 

[EstimateMe]

Sorry it took me a little while to get back to this thread....

I didn't file the claim. The reasons are as follows:

1. As nice as a new hot tub would have been, we probably weren't even going to use the old one, so why go to the trouble and monthly expense of a new one if we were going to do it "just because."

2. Increased home value would have been nice, but when we go to sell in 5-7 years, then it would be just another 5-7 year old hot tub that might need more work done.

3. I was scared over filing a claim when it wasn't a direct catastrophe that happened to the house itself.

4. We still would have had to pay $500 deductible, whereas it cost $200 out of pocket to have it removed by 1-800-got-junk (highly recommend).

5. We are enjoying DOUBLE the space outside on our patio, it's very nice