I just got a small flood in my basement due to water leakage from the water tank. The total cost would be $2000 including replacing the old water tank. It is the first time for me to deal with insurance company, should I get them involved? My deductible is $1000.
Should I get insurance company involved?
- Thread starter ROI
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- Jun 5, 2009
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- 966
Your premium will go up regardless of your claim or not (I never seen premiums go down due no claims)... so I would phone them and ask if you are actually covered. If you are then I see no problem of submit a claim... yet, that's just me.
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- Sep 3, 2010
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I disagree. While insurance premiums do indeed seem to go nowhere but up, putting in a claim will only make them go up more. You may even currently have a 'no claims discount' if you haven't had any claims in the last number of years. Putting in any claim would loose that discount. Insurance companies also don't seem to look at the total cost of claims when reviewing your claims history, simpy the number of them. So a basement leak for $2000 would count against your claim history the same as a fire that destroyed the entire house. If you're only looking at a $1000 net cost ($2000 repair less $1000 deducible) I say swear a bit, pay it out of pocket, and be done with it.
I agree with Asanchez, first, you should phone the insurance company to ask them if you are actually covered. And then to decide whether to submit a claim. If I were you I would do it. Floods are a very real threat to many homes, and sometimes it`s not you fault like in you case. While some water damage is covered, there are some specific cases where it is not. In most cases, sudden and accidental discharge of water into your home is a covered peril; this means that if a pipe bursts out of nowhere, you`re likely covered. Damage as a result of negligence, on the other hand, may not be covered. Even if you do not have coverage for the flood damage, it`s not a bad idea to contact your home insurance company. They can direct you to emergency clean-up services and let you know if there is anything at all in the damage that could be covered.