Would you file a claim?
Context: In 2024, a condo owner successfully contested a non-renewal of his condo insurance that occurred after he filed a $13,000 claim for storm damage in late 2023. Now, he faces a new issue: limited water damage to his walls and hardwood floors due to fire suppression efforts after a fire from a neighboring building spread to his unit. Additionally, he’s unable to live in his apartment for an estimated 2-3 months because of damage to the common areas. His insurance policy does not cover alternative living expenses, leaving him concerned that filing another claim might result in permanent non-renewal of his policy. What would you recommend he do?
In this situation, the condo owner is understandably concerned about the potential repercussions of filing another insurance claim after recently appealing a non-renewal. Here are some points to consider when advising the owner:
Review the Policy: The first step is to thoroughly review the condo insurance policy. Look for any clauses related to claims and non-renewal. Some insurers may have specific policies that could offer protection against non-renewal for a certain number of claims within a given period.
Document Everything: Before deciding to file, it’s crucial to document all damages and expenses related to the recent incident, including photos, repair estimates, and any communication with contractors or the property management. This can help present the claim clearly and substantiate its validity.
Evaluate Claim Necessity: Consider whether the water damage and loss of use are substantial enough to warrant filing a claim. If the costs of repairs and temporary housing are high, filing might be necessary despite the risk of non-renewal.
Contact the Insurer: It may be beneficial to have a candid conversation with the insurance company. Ask about the implications of filing another claim and whether any protections are in place regarding your situation. Sometimes, insurers may offer insight into their decision-making processes.
Explore Alternate Living Costs: Investigate whether other forms of assistance may be available to cover alternate living expenses, such as local government aid, community resources, or even assistance from the condo association.
Consider a Different Insurer: If the fear of non-renewal looms large, it may be worth exploring other insurance options. Even if the current insurer decides to non-renew, the owner can compare quotes from other providers, which may offer better terms and coverage options.
Legal Advice: If concerns remain high, especially regarding potential legal repercussions or if the owner feels overwhelmed, consulting with an insurance attorney may be prudent for tailored advice and peace of mind.
Ultimately, the decision to file should balance the immediate need for assistance against the potential long-term implications for insurance coverage. If the damages are significant enough to warrant a claim, it may be a risk worth taking while taking all necessary precautions and consulting with professionals where needed.