Filing a Claim that Doesnt Pay, Rates Raise?

[iiinycboi]

Will filing a claim that is NOT covered under perils raise your rates?

I have a client who wants to have an adjuster come out to take a look at the house, because her neighbor has them come and take a look. i explain to her that she doesnt have coverage, but she wants them to come out anyways.

if she files a claim for them to come out to take a look. then tell her her claim is denied, can the carrier raise her premium?

 

[Josh]

In NY, the answer is usually yes, especially with homeowners.

 

[djs]

New York is a strange state. In most areas I've seen, if there is no payment, there is no premium change.

Now, filing a claim that doesn't pay can cause a non-renewal. This I have seen numerous times, since now the carrier will want verification that the repairs are done and may also non-renew for other reasons.

Dan

 

[iiinycboi]

Yeah, i'm pretty sure the rates raise the second you call their claim center with your policy number!

anyways, client has no flood coverage. wants the adjuster to come in and take a look at flood damage anyways. i told her that it wont be covered and she declined flood when we bound her.

She wants them to come out and just take a look to SEE if they will pay anything. I know the rates raising is not going through her head right now, and ill hear it in the end when her rates go up for filing.

i honestly believe she thinks they will pay her X amount to fix because her neighbor has their adjuster come out even tho she doesnt have flood either.

so many strange rules here in NY lol

 

[djs]

Ahhh, and with flood, most likely they will get a non-renewal letter due to mold. They may word it differently, but it causes long term problems if not properly mitigated.

Big, mean, heartless insurance companies, all they do is take your money and never pay a claim. How can they exclude flood? What do I pay them for.... oops, channeling my clients. Must be time for a vacation

 

[NCAgent]

keep in mind as well that even if nothing happens, rates might go up if there is a claims-free discount. Filing a claim can also RAISE rates, so there might be a double-whammy involved.

I think there will be an issue with the flood because it might take some time to see if it is "flood" or "water backup."

 

[agentinnc]

not to mention be blackballed on a zero paid claim. Some new prospective carriers wont touch it if there is a claim filed (even 0 paid) for 1,2,or 3 years.

 

[scottye7]

What is the peril? What type of HO does the lady have-HO1, HO2, HO3? It makes a difference.

 

[iiinycboi]

its ho3 but no water back up rider or flood coverage.

so it wouldnt be covered....

are you saying ho1-3 makes a difference in rate hikes?

 

[InsureWithBob]

We always tell clients that if they call their insurance company and make an 'inquiry' ("Garage was broken into, what kinda stuff do I have coverage for?...") that they should not give their name or address to the ins. co. Even if they don't make a claim the calls are being reported as an inquiry/claim with $0 paid and it affects their premium at renewal, and insurability elsewhere, possibly.
Bob