Increase rates after catastrophic calim?

by Guest » Mon Oct 13, 2008 12:46 pm
Guest

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

Total Comments: 6

Posted: Mon Oct 13, 2008 01:22 pm Post Subject:

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.

Posted: Mon Oct 13, 2008 09:26 pm Post Subject:

Yep Thats how mine works...A few years ago the house and shed got hit and it was non chargable.

Posted: Tue Oct 14, 2008 06:16 am Post Subject:

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.

~Jeremy

Posted: Tue Oct 14, 2008 09:38 am Post Subject:

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.

Posted: Tue Oct 14, 2008 11:55 am Post Subject:

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

Posted: Fri Jul 15, 2011 05:07 am Post Subject: QQYmNzkjSkoXAcgVjUz

Hey, that's the graeestt! So with ll this brain power AWHFY?

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