Seeking Advice
We are an older couple with a modest home and a small RV. Throughout our lives, we’ve rarely made any claims. However, six months ago, we encountered an incident on the freeway where we ran over a large tire tread that damaged the underbelly of our RV, leading us to file a significant claim. This was completely unavoidable on our part, but unfortunately, it resulted in increased insurance rates.
Now, we’re experiencing a leak in our master shower that has spread into the guest bedroom. The cost to repair it is at least $10,000, which is quite tough since it was just renovated two years ago (a decision made by a handyman that we regret). We have the option to cash out some investments to cover the expense, but it would take a toll on us.
If we decide to file a claim for this issue, are we risking even higher insurance costs down the line? Just to clarify, the previous RV claim was classified as comprehensive, not collision.
Thank you for any guidance!
I’m sorry to hear about the challenges you’re facing. It sounds really frustrating, especially after having such a good claims history before these incidents. Here are a few things to consider regarding whether to file a claim for the shower leak:
Future Premium Increase: It’s important to analyze how filing a claim might impact your future premiums. Insurance companies often increase rates after a claim, but since you’ve had minimal claims historically, you might still have some leverage with your insurer.
Deductible: Check your policy for the deductible you’ll need to pay if you file a claim. If the repair cost is only slightly above your deductible, it might not be worth it to file a claim.
Cost of Repairs vs. Claim Impact: Weigh the immediate cost of repairs against potential long-term losses from higher premiums. If paying out of pocket won’t significantly deplete your savings, it may save you from future premium increases.
Insurance Consultation: Consider reaching out to your insurance agent for advice. They can provide insight into how this claim may affect your rates, and sometimes they might have options available that haven’t been explicitly outlined in your policy.
Repair Quality: Since the shower was done by a handyman and not a licensed contractor, you might want to investigate if there’s recourse for the poor workmanship. This could potentially help offset costs for the new repairs.
Ultimately, the decision will depend on your comfort level with risk and finances. If you can afford to pay for the repairs without compromising your financial stability, it might be worth it to avoid raising your rates further. Good luck, and I hope you find a solution that works for you!