To Make A Claim Or Not To Make A Claim
That is the question. As a Brentwood and Nashville area insurance agent, it’s the one question I get asked most often when counseling clients on their homeowners insurance. It’s a valid question because a claim puts a blemish on your record for five years, which has serious ramifications. You are always within your rights to make a claim, but it’s critical to evaluate a few things before making that claim.
Insurance companies are in the business to make a profit, therefore your claims are scrutinized and can be held against you if you have a history of claims. For insurance companies, a pattern of making claims is the best predictor of future claims and is a red flag. The bottom line: when insurance companies determine the risk of insuring your home, your frequency of claims is more important than how much was paid.
My office in Brentwood Tennessee gets calls every week from people who have been cancelled for making too many claims. Unfortunately, the reality is that they will not be able to find a low cost policy and will be forced into the high risk market where premiums are higher, deductibles are higher, and coverage is not as comprehensive.
Insurance companies track your history and judge you accordingly before deciding whether to insure you or not. A long or spotty history of claims sends up red flags that you’ll do it again. That could mean you’re a high risk that they don’t want. All claims are reported to an industry wide database and kept on file for five years – even the ones that were denied. That’s why it’s important to consult with me, your agent, before making a claim!
So when should you file a claim? Here are some basic rules to follow:
- Never file a claim if the damage is less than the deductible— it won’t be covered – and it’ll be a blemish on your record. As a consumer, it’s important that you determine the amount of damage before making a claim. Very important: a claim is a claim even if nothing is paid, insurance companies say it’s still an intent to make a claim. In addition, you should carefully consider making a claim if the damage is only a few hundred dollars over the deductible. If you have $1200 of damage and a $1000 deductible, you’ll pay the first $1000 and only get $200. A good rule of thumb is: make a claim when the damage is twice the deductible.
- Make sure you’re covered. After heavy rains or hurricanes, many homeowners mistakenly think they have coverage and file a claim. Again, call me first. Traditional homeowners insurance does not cover damage caused by incoming ground water or flood water. That’s a separate policy underwritten by the National Flood Insurance Program. Remember: if you file a claim and it’s denied, it’ll be a blemish that sticks for five years.
- Think about the last time you filed a claim. Really, how long has it been? If you’re a consistent claimant, you’re going to get slammed on rates or worse, get cancelled. It’s not unusual for the average homeowner to file 1-2 claims in a 10-year period, but 2-3 claims in a 5-year span and you are playing with fire, and are considered a high risk. If you know these numbers, and don’t take advantage of the system, you’ll get the best rates the industry has to offer.
- Don’t submit claims for what is really a home-maintenance project. If the fence is getting old and rotting away, fix it. If the roof is old and needs replacing, replace it, even if your neighbor’s roof was covered by insurance and yours was not. Have a household budget for maintenance and improvements. There’s an upside as well: not only do you get a better looking home, but a well-maintained home gets better rates.
You can take that to the bank.
Written by Scott Johnston, Johnston & Associates Insurance, 7003 Chadwick Dr, Suite 298, Brentwood TN 37027, 615-915-1521
A Home Invasion Every 15 Seconds, Really?
There is a home invasion in the US approximately every 15 seconds (unfortunately, Nashville and Brentwood are not exempt). If you look around your home you will see locks on the doors and windows, and perhaps you even leave the lights on outside. Those are the top two things you can do to frustrate burglars.
Johnston & Associates would like to give you some more tips on how you can frustrate would-be-burglars.
- Don’t give an invitation. That may sound a little weird – who would invite a burglar? But many people unknowingly invite burglars by advertising what they have.
- When you purchase an item like a television, don’t put the empty box out with the trash. Tear the box up and put it in a trash bag, or flatten the box and recycle it.
- Don’t leave items such as bicycles outside for everyone to see. The same goes for inside. Open your curtains or blinds and walk around your house. What do you see? This doesn’t mean you can’t have a television where others can see, but hide those purses and billfolds.
- Don’t provide hiding places. Even if you leave the lights on, tall bushes provide burglars with an opportunity. Take time to trim tall bushes near windows and doors. Have a friend help by having them hide behind your bushes. If they can hide, trim the bushes even more.
- Secure sliding glass doors with a metal rod or piece of plywood in the track.
- Use timers on lights and rotate the timers throughout the house to keep a possible burglar guessing whether or not you are home.
- If you are gone for several days, let a neighbor park in your driveway so it appears you are home.
- If you are gone for several days, don’t close all your drapes and blinds, as that is a sure sign you are gone.
- Put a security sign on your doors and windows. People don’t know if you actually have a security company, so it might discourage a possible burglar.
- Use motion detectors on outdoor lights. Houses with outdoor lights are targeted less often than houses without lights.
Just a few tips we hope will help prevent a crime. Please call us if we can answer your questions or be of any assistance with your insurance needs – both personal and commercial! This is a great time to shop around for a new homeowners policy.
Independent Agents VS Captive Agents
Your Independent Insurance Agency
At Work for You
Keeping an Eye on Your Bottom Line
In the world of Insurance professionals, there are generally two kinds of agents:
Captive or Independent.
As your Insurance agent, I feel compelled to tell you about a recent misfortune that happened to us. A client called our agency asking to cancel his homeowners insurance because his rate went up. When we asked what carrier he went with, he said “Allied Insurance, they were a lot cheaper.” Unfortunately for us, he made the switch without calling us first. Allied is just one of the many carriers we represent here at Johnston & Associates. This was frustrating – we could have easily re-quoted him with no effort on his part. I blame myself for not informing him in advance, and letting him know exactly what we do. That’s about to change. So here goes, a little Insurance 101…
Captive Agents
Captive agents work exclusively for one insurance carrier and are obliged to give business only to them. They are usually limited to a few products like auto, home and life. Captive agents represent the company’s interests and thus, are limited to that carrier to place your insurance with. So if your rates go up, a captive agent has no alternative, and can do nothing for you. It is then up to you to make all the calls, compare all the quotes, and go through the hassle of moving your insurance – again and again.
Independent Agents
In direct competition with the captive agent, independent brokers represent multiple insurance carriers and work on behalf of the client to find the best policy on the open market. Independents are not captive to any company, and can easily move your insurance to a more competitive company when rates go up. By using a sophisticated software interface that allows them to quote 20 carriers at once, Independents can recommend the best policy for their clients – at the best rate. You do nothing. The Independent does the work for you by staying ahead of trends and rate increases – then notifying you of the best alternatives. .
At Johnston & Associates Insurance, we are a family owned Independent agency, representing some of the best companies in the industry. We do it all, both Personal and Commercial Insurance. From classic cars to strip malls, from Travelers to Safeco, to Lloyds of London, we work with over 30 different carriers to make sure you get your money’s worth. Please give us a call, and put us to work for you! We’ll find the best policy available on the open market, and promise to keep an eye on your bottom line. Every time.
Most Common Repairs Needed As Spring Arrives
In nature, spring is a time when new must replace the old and in the Tennessee housing world, the same is also true. With spring arriving, there are several things that you should be on the lookout for in terms of home repairs. After all, fall and winter can have harsh effects on a variety of areas of your home, while spring brings a host of new problems that can exacerbate the issues that already exist. The following are a few of the most common repairs that you might need to conduct as spring arrives.
Gutter Repair :: Spring can bring with it some of the rainiest weather of the year in Nashville & Brentwood, and if your gutters are broken or clogged, the water can spill over or sit in inopportune parts of your house. This can lead to water damage, mold, mildew, and leaks if it is not discovered early enough. Therefore it is very important to check your gutters and downspouts so that your house will be properly protected from the potential heavy rains that come with spring. Make sure that you or the people you hire check to make sure that the gutters and downspouts are devoid of debris, and that all parts of the system are connected.
Concrete Repair :: Water can also exacerbate cracked concrete, so it is very important to make sure you do not have any cracks or fissures developing in the concrete around your house. Especially if you live in a cold area, snow and ice may have been disguising any damage that had occurred during the winter. You want to make sure the cracks are filled and covered before heavy rain arrives, as water will seep into the concrete and damage it further.
Rust :: Rust is another thing that will worsen if left unrepaired before the rains. Especially with fixtures and other metal pieces that have moving parts such as gate and fence latches, it is important to repair rusty metal as soon as possible. This can usually be done with steel wool or other abrasives for removing rust, followed by a fresh coat of water-proof paint. There are also new paints on the market that reduce the need to sand down rust metal, as the paint is formulated to be adhesive to rust and to stop the rusting process from progressing. Extremely rust pieces might have to be replaced entirely, though.
Brickwork :: Both the brick and the mortar on your house can chip or pop away, leaving it susceptible to moisture damage, a prevalent threat during the springtime. This can be repaired with sealants and paints made especially for brick. Again, a good time to do a full inspection of the brickwork on your house is before spring (or early on) as you don’t want to get caught flatfooted by the rain.
If you check these 4 things as spring arrives, you are well on your way to maintaining your house and making it last as long as possible, for as little as possible. Remember – the common theme is to protect your home from rain, as it is the most potentially damaging thing about spring – and water damage is a huge risk to your home at any time.
For homeowners insurance in Nashville and Brentwood, call Johnston & Associates Insurance at 615-915-1521.