October 07, 2006
You’re Not Claiming Enough!
Got a nagging feeling that you are not getting enough out of your hefty homeowners insurance? You may not be wrong after all. Some homeowners could be saving a chunk of change every month on their home insurance if they only paid more attention to their reluctance to file claims. These findings were from a new study from MIT's Sloan School of Management. Many of us have this feeling that we don’t need to file a claim in some cases.
For instance, imagine a situation where your window was broken by a baseball and it cost you $700 to repair it. Now, if your deductible is $500 and you’d get only $200 if you filed, would you file that claim? Some of you may, but most would not want to be bothered with that hassle. And then there is the problem of too many filings affecting your claims history. Marketwatch.com reports:
"Your rates, whether it is auto or homeowners insurance, are influenced by your claims history as well as other things," said Bruce Maynard, senior assistant vice president at Amica Mutual Insurance Co., in Lincoln, R.I. "Now, not every claim influences your rates," he said. When it comes to setting premiums, "there are multiple factors that go into it," he said. "If you have concerns, talk to your carrier. You're a customer -- you have a right to understand how your product is priced."
Read more: Homeowners' claims history shows they often overpay on insurance: study
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