Posted: Mon Oct 13, 2008 12:46 pm Post subject: Increase rates after catastrophic calim?
I could not find a post on that, so here it is:
Over the last few months, my neighborhood got hit by 3 hail storms. Many roofs were damaged including mine. The Adjuster came and concluded that the roof have to be replaced. No issue so far.
The question - If I will accept that and replace the roof, will my insurance rate goes up? If yes - Is there a formula on how much?
(the contractor advised that once the storms were defined as catastrophic, it will not affect my rates - But I am not I can trust that).
Thanks for any input!
AmDek723 _________________ Register Now to have your Insurance queries solved.
I can't speak for other companies, but with mine...if there is a catastrophic event (we call it a cat-loss), then they are non-chargeable claims and your rate will not go up. _________________ Life moves pretty fast. If you don't stop and look around once in a while, you could miss it. - Ferris Bueller
Hello AmDek723, some insurers may not charge you more for filing catastrophic claims, but others may take this into consideration while deciding your rate. Hence, depending upon the company's business policy your rate may remain the same or may increase.
However, when the insurance company is hit by several huge claims, its likely to increase the rates for all its clients in the affected area. This is done in order to replenish its depreciated capital reserve, which they have used to cover the damages. Hence, we often experience that the homeowners rates in the affected areas increase after the catastrophy. At least, it happened after Katrina. Hence, you too may experience a rate change.
Call your agent or ask the adjuster all companys are different the one I have the first cat is free, after that there is a rate up. _________________ Have you been helped by a poster? Do you want to show your appreciation? YOU CAN !! Just simply click on the donate button and send them some coin!
Thanks for all the information.
I did some research with the insurance company and they advised just about the same as all of the posts above.
Thanks all again.
AmDek _________________ Register Now to have your Insurance queries solved.
