Insurance Claim question

[Maria K.]

I may need to file a claim for some roof damage on my rental property that is out of state in SC. I am not sure whether the damage would warrant a full replacement by the insurance company. The roof is at 20 years - end of life. I know that filing a claim can cause some issues when searching for insurance on the next property. Not sure if it makes a difference on whether the next property would be considered my primary residence or an investment property. Does anyone work with a company that would be able to work with me in this scenario considering I have a recent claim for a future purchase in MD, PA, DE or SC?  The company I am currently working with only offers coverage in SC.  

Thank you. 

[John Mocker]

Maria,

What is covered and how the value of the damaged property is determined by the policy and the circumstances of the loss.   The first thing to determine is;  Is it Covered?   What caused the damage (wind, hail, fire, etc..) and is that a covered peril (cause of loss) in the policy?   Most policies do not cover wear & tear so if the roof just wore out, it will probably not be covered.

Second, you need to know:  How will the company value the damage?  It usually breaks down to Replacement Cost vs. Actual Cash Value (Replacement take away Depreciation).   Replacement Cost coverage does not take the depreciation into account so the age should not be a factor.   Actual Cash Value coverage on the building will definitely be affected by the age.

Each Insurance company has to file their own Underwriting Guidelines with each state so the effect of the claim will depend on the company.   State laws also impact what the Insurance company can do about the loss on your record.   Most of our companies will run a Claim report that will show claims on the address of the property to be insured and also claims that the proposed Insured had so it will probably show up.

One loss should not prevent you from getting coverage.  I know of at least 2 companies that write policies in all three states and that can handle the 1 claim situation.  Pricing may not be as good as it would have been without the loss.