There may be some question dealing with deductibles and claims. Elzey Insurance would be more than happy to clear up any concerns you may have!
Your deductible is the amount you pay out-of-pocket toward the amount of your loss, the insurance company then pays the balance and it has a direct impact on whether you should submit your claim or not.
Let’s say you suffer $3,000 of damage to your home under a covered claim. And let’s say your deductible is $1,000. In this case you pay $1,000, and your insurance company pays the remaining $2,000. Clearly, if the amount of your loss is less than your deductible there’s no point to submitting your claim. You’re going to pay it all anyway, so why report it?
For example, if your deductible is $1,000 and your suffer $800 in damages, then your insurance company isn’t going to pay anything. The amount of damage is less than your deductible. You’re responsible for the first $1,000, so you’re responsible for the full $800 in this case.
But here’s where it gets a little tricky.
What if the loss is just a little bit more than your deductible amount? What if your deductible is $1,000 and the damage is something like $1,200?
In this case, your damages are only $200 more than your deductible. Therefore, you’ll receive only $200 from the company. Is it worth getting $200 to suffer the consequences of submitting the claim?
It depends on what those consequences are!
Depending on the type of loss and your personal situation, this claim may cause an increase in your rates, possibly a significant increase. It may cause your policy to be non-renewed.
You may find – once you know the exact situation for your personal circumstances – that it’s less costly for you to pay the additional $200 out-of-pocket and keep the claim off your policy.
The point is this: Unless you know what the impact will truly be you cannot make a good decision. So, if you’re not sure, get the facts.
to check out Elzey Insurance’s website to find these facts!
Insure with us today, be sure of tomorrow!