Rental Property Investor · Memphis, TN · Member since 2011 · 111 posts · 40 votes
12y
Swat,
Talk to your trusted agent "on the side" so to speak. DO NOT CALL THE 1-800 NUMBER. Tell your agent what happened and what would be the best way to proceed. See if they can provide any insight as to what the response of the company will be.
Yes, they will give you hassles once you report it. What their response will be, from increased rates to a dropped policy, I cannot say but there will be a response. You need to decide if it is worth it to you to report it. I do not know how much, how extensive or expensive the damage was but you somehow need to weight this cost against the cost of increased rates or being dropped.
Know this as well, if you report it, it will be more difficult and expensive for you to get coverage in the future. It sucks, but it is the way it is. Weight your options carefully.
Investor · Omaha, NE · Member since 2011 · 475 posts · 211 votes
12y
@Swat Khan We've had fires in two different complexes, one we did report as it damaged 4 units and the response we had from the insurance co. was great and they didn't jump our coverage that much. It was especially valuable because we had rent loss coverage so had a lot less $$ lost in the end. The other was a smoker who accidentally set her own sofa on fire. that one has an installed fire suppression system so her's was the only unit damaged and she agreed to reimburse us the damages (over time of course).
Developer · Saraland, AL · Member since 2013 · 93 posts · 52 votes
11y
I'm late to this party, but I will add some insight. I deal with claims on a regular basis. Fires, tornados, hail storms, fires, floods and hurricanes. I've only seen one propert dropped, and it was an owner policy and not part of the blanket policy our management company has available. The subject property in two years had the office burn down, tornado and hail storm. Just over a million in claims. Deductibles on each were $25k. Now there is a new policy in place, and there is a new fire claim 2 units burned. Owner was able to get insured, but now has a $100k deductible. Fire claim $185k. All of the claims also benefited from rent loss claims. All of these claims had to be negotiated and were settled well above the initial offers from the insurance company. You need to have someone who knows how to negotiate your claim. You shouldn't have any issues with the insurer sending out an adjuster, but do not trust their numbers. If anyone ever has questions on this, feel free to hit me up.
Insurance Agent · Cleveland, OH · Member since 2013 · 206 posts · 98 votes
11y
Swat Khan,
Great advice you have been given so far. As for your questions, they will absolutely give you hassles if you make the claim. They are in business to make money not give it back. I do not know who your insurance company is however they all have the same approach to paying claims. They will most likely give you a low ball estimate and try to get you to settle for quick cash today. They cannot cancel your contract for making a claim or raise only your rate for filing a claim. Rates are not determined based on you as an individual, that is auto insurance(auto insurance is completely different in so many ways). That is illegal for them to do as they are not allowed to single out policy holders. What they can do is not renew your contract.
Your insurance agent does not deal with the claim process and most likely wont be able to help you much. They will point you in the direction you need to go and that is about it. The Adjuster who estimates your claim works for the insurance company remember this because it is your job to represent your claim properly to the insurance company. What I would recommend is that you search for a local Public Insurance Adjuster and set up a meeting with them. A public insurance adjuster can handle the entire claim process and best of all they work for you and get paid based on how much more money they get you paid. Good Luck