Would you file a claim?
Scenario: In 2024, a condo owner successfully appealed a non-renewal of his condo insurance that occurred after he filed a $13,000 claim for storm damage in late 2023. Now, following a fire that spread from a neighboring building, he is facing limited water damage to his walls and hardwood floors due to fire suppression efforts. Unfortunately, he cannot live in his apartment for an estimated 2-3 months while repairs are made to the common areas. Since his condo policy does not cover alternative living expenses, he is apprehensive about filing a new claim with his insurer, fearing it may lead to another non-renewal—this time, permanently. What would you recommend he do?
In this situation, the condo owner should carefully weigh the options before deciding whether to file another claim. Here are a few factors to consider:
Assess the Damage: First, it’s essential to evaluate the extent of the water damage and the potential costs involved. If the damage is significant and filing a claim is necessary to cover repair costs, it might be the best course of action.
Review Insurance Policy: The condo owner should thoroughly review the terms of their insurance policy to understand the implications of filing a claim. Look for any clauses related to non-renewal and claims history.
Consider Alternatives: If the damages are minor and the costs of repairs are manageable out-of-pocket, it may be wise to avoid filing another claim, especially given the concern about non-renewal. If possible, getting estimates for the repairs could help in deciding whether to file a claim.
Communicate with Insurer: It might be helpful to have a conversation with the insurance agent or company to discuss concerns about non-renewal and any possible options available. Sometimes, insurers may provide advice that could alleviate fears.
Look into Other Assistance: If the condo owner is concerned about covering living expenses, they should investigate if there are any local resources or assistance programs available to help residents affected by such circumstances.
Ultimately, if the damage warrants a claim, the condo owner should not let fear of non-renewal deter them from seeking necessary repairs. Balancing the potential risks and benefits will guide the best decision in this situation.