The insured had two major concerns about filing a claim, and we noticed that they’re common concerns that many people have. They’re also entirely factually incorrect. First, the insured was concerned about their rates going up. If you have renters insurance in Scottsdale, you’re probably paying around $190.00 a year for the policy. That is, we will all agree, not a ton of money.
If you have a $5,000 loss, and your rates go up, what will happen? We picked some multipliers to use to make a point. In reality, the claim would probably not drive the policy up anywhere near this much, but for the sake of argument, let’s look at worst case scenarios.
If the cost of the policy doubles, you’ll pay an extra $190 per year for let’s say the next three years. That’s $190 x 3, or %570 over the course of the next three years. You still come out $4,430 ahead on that $5,000 loss.
Even if the cost of the policy were to triple – highly unlikely, that would be another $380 a year for 3 years, or $1,140. Guess what, $1,140 is less than the $5,000 loss. As a result, it makes sense to make the claim.
Some people are concerned about their deductible. It’s not that they don’t want to pay the deductible, per se. It’s that they don’t want to write yet another check to the company they’ve been paying for Arizona renters insurance for a long time.
Um, you do realize that the deductible is not paid to the insurance company, right? It’s not a fee that’s paid for making a claim. It’s not a bribe for the adjuster. It’s not a tax, or additional premium. It doesn’t go into the pockets of your claim rep.
The deductible on your renters insurance is the portion of the loss that you absorb before the policy kicks in. If you have a $500 deductible on the aforementioned $5,000 loss, the claim check is for $4,500 and you add $500 to the pot. It’s still your money. If the claim is entirely for electronics, perhaps you’ll that the $4,500 (and your $500 deductible) to Best Buy and pay the $500 to them. It’s paid to whomever you purchase the replacement property from.
What if you sit on that claim for a while because you’re still not sure? Making a police report of the loss helps a little, but it will still raise an eyebrow if you go to make that claim a year later. Within a certain period of time, you can make the claim, but there may be some additional hoops to jump through. Your deductible is intended to prevent you from making a claim for a $200 loss that you can and should absorb on your own, but it’s not intended to prevent you from making a claim period.
You have renters insurance. If you have a claim, use the coverage. That’s what it’s there for.
What’s that? You don’t have renters insurance? Well then now is the time to get covered. For around fifteen dollars a month, you get the coverage and the peace of mind that you deserve. It takes as little as sixty seconds to get covered online. Just call (800)892-4308 or click to get covered - whether you need Scottsdale renters insurance quotes online or coverage anywhere else!
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