I filed an insurance claim, but the issue might not be as serious as I initially thought. Should I cancel the claim with no payout or just pay the deductible and proceed?
This morning, my toilet flooded, causing damage to my ceiling and walls, and it has even spread through to the basement and drop ceilings.
My deductible is $2,500, and I’m considering whether it might be more cost-effective to pay a couple of guys $3,000-$4,000 to handle the repairs instead.
I’m aware that insurance claims can follow you regardless, so I’m trying to figure out if it’s better to go with a $0 claim and cover the costs myself versus paying the deductible.
Here’s a picture of the damage: https://imgur.com/a/Z2FS9GZ
I also have a claims-free discount, so I’d still feel the impact on my rates. I’m just trying to weigh the benefits of a $0 claim in comparison to potentially facing an $8,000 claim. Any thoughts?
It sounds like a frustrating situation with your toilet flooding. Here are a few things to consider when deciding whether to proceed with the insurance claim or pay out of pocket:
Cost Analysis: If the total damage is estimated to be around $3,000 to $4,000, and your deductible is $2,500, paying out of pocket might be more economical. If you claim through insurance, you would only get a fraction of the total cost covered after the deductible.
Future Premium Increases: Since you mentioned you have a claims-free discount, filing a claim could affect your premiums in the future. Even if the claim is $0, having a recorded claim can still raise your rates, especially if you face a rate increase due to your claims history.
Damage Assessment: Make sure to thoroughly assess the extent of the damage. Sometimes initial assessments can underestimate the scope of repairs required. If you believe it’s manageable and can adequately repair without going through insurance, that might be a more straightforward route.
Documentation: If you decide to pay out of pocket, make sure to document everything thoroughly (photos, receipts, etc.). This can be useful for your records and safeguard against any future issues related to the damage.
Insurance Considerations: Sometimes having a claim on your record can be a factor when switching policies or providers in the future. If you’re close to a renewal period or considering a change, weigh the potential long-term costs of filing versus absorbing the expense now.
Ultimately, assess your comfort level with the repair costs, the possibility of future premium increases, and make sure you’re fully aware of your insurance policy’s terms. Sometimes it may be worth just handling it outside of insurance if the damage is manageable.