Be Prudent About Your Claims

You have just suffered a loss. What should you do first... report the loss to your insurance company... have the damage repaired immediately... or call your insurance agent?

Times of loss can be very confusing and unsettling. One source of information and guidance, however, that you can always count on, is the Morgan-Marrow team. We are here, ready to help, answer your questions, and guide you in the right direction.

Most companies now have Direct Reporting, a feature that enables customers to directly call the insurance company to report losses and expedite the claim process. While this is a time saving feature for large, catastrophic losses, after hours and on weekends, it may not always be the best procedure. Why? Because as your agent, we lose the opportunity to provide counseling on the best way to process your claim. Consider this example:

A windstorm blows several shingles off your roof, and you know your homeowner policy has a $250 deductible. Instead of calling your company claims department, call your agent who can advise you to obtain an estimate, and probably also provide you with names of reputable roofers in your area. You then call a roofer who give you a repair estimate of $150, which is less than your $250 policy deductible. Now, you know not to report the claim.

How does this affect you? If you had called the claims department directly, the company would immediately establish a claim file and assign an adjuster to appraise the damage. In this situation, since the cost to repair the damage is less than your deductible, you will not receive any payment. But the cost for the adjuster’s services must be paid, and a record of the reported loss is created. Unfortunately, insurance companies consider these types of claims when evaluating policies at renewal.

Calling direct more than once during a two to three year time period to report such losses is considered “claims frequency,” and the company may decide to either non-renew your policy or move your coverage to a higher priced company.

We’re not advising that you not place a claim; that is your right. We do suggest, however, that you be prudent with your reporting and understand that insurance is best utilized when it is used to cover major losses.

Please, the next time you suffer a homeowner loss, call us first and take advantage of our experience. As your agent, we want to protect your coverage as much as possible.